Background and location
VetyAlfa is planning a large-scale green hydrogen refinery project in Kemijärvi, Eastern Lapland. The project is based on TuuliAlfa’s Lapioselkä wind power project in the municipalities of Salla and Savukoski, where a large renewable energy portfolio comprising approximately 200 wind turbines is under development.
The planned location of the hydrogen refinery is in the Lähtelänpalo area, approximately 10 kilometres west of the centre of Kemijärvi, between a main road and the railway line. The area is adjacent to Fingrid’s transmission grid, providing favourable conditions for grid connection and logistics. The refinery would require a site area of approximately 10 hectares. There is no permanent or holiday housing in close proximity to the site.
Hydrogen production and derivatives
The operation of the refinery would be based on renewable electricity, primarily supplied by the Lapioselkä wind power project. In addition, approximately 100 MWp of solar power generation is planned in connection with the refinery to complement the electricity supply, and electricity can also be sourced from the transmission grid when needed.
At full capacity, the planned electrolysis capacity would be approximately 1,000 MW, enabling the production of around 192,000 tonnes of green hydrogen per year. This volume corresponds roughly to Finland’s current total hydrogen consumption. The hydrogen can be further processed into market-driven derivatives such as e-methanol, e-methane, e-ammonia or sustainable aviation fuel (SAF), replacing fossil-based products in industry and transport.
The water required for hydrogen production would be sourced primarily from Lake Kemijärvi, approximately 10 kilometres from the site, or alternatively from local groundwater resources. Based on preliminary studies, the impacts on water resources are expected to be limited, and they will be assessed in more detail as part of the environmental impact assessment process.
Project development status
A zoning initiative for the project will be submitted for decision by the City of Kemijärvi during 2025. The environmental impact assessment (EIA) process is scheduled to start during 2026. Following the EIA, the project will apply for the required environmental, water and building permits, with the permitting phase expected to take place during 2026–2027.
VetyAlfa is prepared to implement the refinery either at full scale with an electrolysis capacity of approximately 1,000 MW or at a smaller scale of around 200 MW, depending primarily on the progress of the Lapioselkä wind power project and market conditions. The start of operations is estimated around 2030.
