The City of Oulu, Finland, has joined forces with French company Verso Energy to develop a hydrogen processing plant in the city’s port area. The plant, which will be the largest of its kind in Finland, is set to produce 80,000 tonnes of sustainable aviation fuel (e-SAF) annually, marking a significant step forward for Finland’s green energy ambitions. The project is estimated to cost €1.4 billion and is expected to create 250 new jobs.
The co-operation agreement, signed at the Northern Power Forum in Oulu, underscores the city’s growing prominence as a key hydrogen hub in the Nordic region. Antoine Huard, CEO of Verso Energy, highlighted Oulu’s strategic location and resources, stating that the city is well-positioned to produce emission-free aviation fuel in an environmentally friendly manner. “Finland is a very attractive country for e-SAF production, and the Oulu site has all the qualities to be a very competitive site at the European level,” Huard said.
This project marks a significant milestone for Verso Energy, which has multiple hydrogen and synthetic fuel plants in development in France. The Oulu facility will be one of the company’s first international ventures. Verso Energy specialises in producing synthetic fuels for both aviation and maritime industries, with a focus on sustainability and reducing carbon emissions.
The timing of the project is also critical as the European Union requires that all fuel used at the continent’s largest airports must contain at least 2% sustainable aviation fuel (SAF) starting this year. Currently, no SAF production plants operate in Finland, making the Oulu plant a crucial addition to the country’s infrastructure. The agreement between Oulu and Verso Energy ensures that the city’s zoning of the port area will align with the project’s green transition goals.
Marko Kilpeläinen, Director of Urban Environment Services for the City of Oulu, pointed to Finland’s flexible zoning process as a key factor in attracting such significant green investment. “In Finland, the zoning process can run parallel to a company’s project planning, offering more flexibility compared to some other countries,” he explained.
The co-operation agreement is set to remain in effect until the end of 2026, during which time both parties will work to finalise the implementation agreement. This will define key investments and the responsibilities of each party involved. Oulu Mayor Ari Alatossava expressed pride in the smooth progress of the project, noting that it highlights the city’s important role in the green transition.
“I am glad that Verso’s project has progressed so smoothly,” said Alatossava. “This indicates that our city has a valuable role to play in the green transition. I want to thank our experts for their efforts so far and Business Finland for facilitating the contact with Verso Energy.”
The hydrogen processing plant in Oulu is a crucial step toward meeting Europe’s green energy targets, as it will help Finland contribute to the broader EU goal of reducing aviation-related emissions while creating valuable jobs and industrial growth in the region.