Skip to main content
14 January 2025 | News

Vetyalfa plans hydrogen refinery in Utajärvi

Vetyalfa has launched a green hydrogen refinery project in Utajärvi, North Ostrobothnia. The project could lead to the production of up to 150 000 tonnes of hydrogen per year, plus a refinery producing various synthetic fuels. The maximum capacity of the plant's electrolyser would be 1000 MW, or a fifth of this in the reduced option.

Vetyalfa plans hydrogen refinery in Utajärvi
Oulujoki River flows through Utajärvi. Photo: Utajärvi City

The Utajärvi Municipal Board approved the partnership agreement and the land lease agreement for the project on 14.1.2025.

The refinery would be based on local resources: renewable electricity and separation of hydrogen from water. The electrolysers needed for the production of hydrogen would receive part of the electrical power from a solar power park to be developed at the same time, with a capacity of around 100-200 MWp. The production plant would be connected to the existing electricity grid in the area, either at 110 kV or 400 kV.

The exact further processing of the hydrogen will be decided as the project progresses to meet market needs. Possible refineries include e-methane, e-methanol, ammonia or sustainable SAF aviation fuel.

At a maximum capacity of 1000 MW, the investment in hydrogen separation and downstream processing would be between € 1-3 billion, depending on the downstream processes. The environmental impact assessment (EIA) process for the project will start in early 2025. The project could be completed and the new hydrogen plant could start up between 2028 and 2029.

The project is similar to the projects of the same size announced by Vetyalfa 2024 in Vaala and Kemijärvi. "Tuulialfa and its subsidiary Vetyalfa will contribute to moving Finland towards a hydrogen economy," says Antti Tanskanen, CEO of the companies. "Renewable energy built in Finland will enable the production of globally competitive green hydrogen and fossil-free synthetic fuels that can be further processed from it."

"This new emerging industry is also a key enabler of the future welfare society," Tanskanen continues.

Utajärvi Mustikkakangas is an area under development. The municipality owns the land. The project area for the hydrogen refinery is 20 hectares. The area is close to the railway, which will enable the transport of raw materials and end products.

Utajärvi promotes the Oulu River Hydrogen Valley

Once completed, the factory project could create up to 120 permanent jobs. The indirect employment impact would be multiplied from the complex supply chains in the technology sector to the extensive network of subcontractors, e.g. in repair and maintenance. The municipality of Utajärvi would receive direct tax revenues mainly from property tax, municipal tax, corporate income tax and local labour income tax.

The municipality is happy to cooperate with Vetyalfa, which will enable the municipality to expand its green transition package. "The cooperation will also enable us to build and strengthen the Oulujoki Valley hydrogen valley complex and thus contribute to the development of hydrogen investments in Finland," says Anne Sormunen, Mayor of Utajärvi.

According to Sormunen, the municipality has been zoning the land for several years and companies coming to the Mustikkakangas industrial estate will be able to benefit from clean and affordable local energy in the future. Proactive land use planning and zoning will speed up the green transition from project to reality, in this case the construction of a hydrogen refinery.

"As a municipality, we are involved in the development of hydrogen recovery in cooperation with the University of Oulu, for example in the field of hydrogen refuelling. We are also involved in a project to study hydrogen storage solutions."

"In Utajärvi, we are developing not only hydrogen, solar and wind power, but also carbon sinks and the circular economy. We are working with companies on carbon-wise measures in all areas, which will bring us both vitality and economic added value". Sormunen continues.

Reija Knuutila, Business Director of Vetyalfa, who prepared the project with the municipality, considers Utajärvi to be a pioneer in the green transition in many ways. "We really expect a lot from this cooperation and the opportunities that the municipality's long-standing cooperation with the University of Oulu will bring."