VetyAlfa Oy’s significant green hydrogen refinery project initiated in Utajärvi, in Finnish Northern Ostrobothnia, has received a €150 million investment grant from Business Finland. This decision is part of the Finnish government’s promotional measures related to the green transition.
VetyAlfa’s refinery project, which began in 2024, aims for a maximum annual hydrogen production of 180,000 tonnes. The plans include enabling the further processing of hydrogen in a value chain up to the production of synthetic fuels. At the same time, the maximum retention of the value chain in Finland is ensured.
VetyAlfa’s Utajärvi refinery plan, in its maximum option, is the largest hydrogen economy project in Finland.
“Business Finland’s decision strengthens the prerequisites for the project’s realization,” says Antti Tanskanen, CEO of Alfa Group. “We aim to have the conditions to decide on the investment in 2027. This would allow the new hydrogen refinery to start operations before the turn of the decade.”
According to Tanskanen, the scalability of the mill project and the possibility to produce a wide range of end products will contribute to the participation of several different industries in the project. This naturally increases the attractiveness of the project in the eyes of investors. VetyAlfa Oy has already opened discussions with parties interested in the production of hydrogen and further processed products.
Tanskanen estimates that Vetyalfa’s projects will progress in a timely manner with the guiding effect of EU regulation. With EU decisions, the demand for the hydrogen refinery’s end products will start to grow from 2028 onwards. VetyAlfa’s plans also include enabling the production of refined products in Utajärvi for future market needs. Potential refined products include e-methane, e-methanol, ammonia, or sustainable eSAF aviation fuel.
VetyAlfa’s projects support the goals of the EU and Finland
The rapid growth of renewable energy production has created a significant opportunity for Finland to establish new industries. Finland is considered globally to have great potential in the hydrogen economy related to renewable energy and the clean transition.
“Business Finland’s investment aid is an indication of the Finnish government’s commitment to promoting clean energy-based industries. More broadly, funding decisions strengthen Finland’s position in attracting large investments to the country amidst fierce international competition,” Tanskanen states.
He emphasizes how important the renewable energy-based industry will be for our country’s economic development and the future of our welfare society. “The significant growth of renewable energy enables the globally competitive production of green hydrogen and fossil-free synthetic fuels refined from it. Other domestic industries that utilize Europe’s highly competitive renewable energy will also benefit from this.”
According to Reija Knuutila, Business Director of VetyAlfa Oy, who is leading the Utajärvi project, Business Finland’s decision confirms that the project’s permitting and environmental impact assessment (EIA) are progressing as planned towards a more detailed technical design phase. The project also has a broad network of partners.
According to Knuutila, the hydrogen economy based on renewable energy is still a new sector that needs flagship projects. “It is very encouraging to be promoting one of these flagship projects. At VetyAlfa, we have a solution that simultaneously addresses the needs and questions that are considered important at ministerial and EU levels,” says Reija Knuutila.
The Utajärvi plant’s electrolyser capacity would be a maximum of 1000 MW, or half of that in a narrower option. At maximum capacity, the investment value for hydrogen separation and further processing would be 1-3 billion euros, depending on the refined products. The refinery’s operations would be based on local resources: renewable energy, a developing electricity grid, and hydrogen separation from water. The electrolysers needed for hydrogen production would receive part of their electricity from a concurrently developed solar power park.
The investment grant has been allocated to Blueberry Field H2X Oy, established by VetyAlfa Oy for this project. Reija Knuutila is also responsible for the project in her role as CEO of the Blueberry Field H2X project company.
In addition to Utajärvi, VetyAlfa has hydrogen projects in the zoning phase in Northern Finland in Vaala, Kemijärvi, and Rovaniemi, which are also being fully advanced.
VetyAlfa is part of the larger Alfa Group, which also includes TuuliAlfa Oy, developing wind power and electricity grid projects, and SolarAlfa Oy, focusing on solar energy and electricity storage projects. The Alfa Group has an extensive project portfolio that enables the scaling up of synthetic fuel production capacity to meet market needs well into the 2030s.
Business Finland is a state organization to offer services to Finnish companies that aim to grow in the international market, develop future solutions and renew their business.
Further information:
Antti Tanskanen, CEO of Alfa Group and CEO of VetyAlfa, tel. +358 44 977 0409
Reija Knuutila, Business Director of VetyAlfa, CEO of Blueberry Field H2X Oy, tel. +358 50 3793735
Sami Kyntölä, Commercial Director of VetyAlfa, tel. +358 44 345 4335