Hy2Gen plans Finnish e-methanol plant targeting bunker demand

Renewable fuels producer Hy2Gen has proposed building a hydrogen and e-methanol plant in the Finnish Port of Oulu and intends for some of the output to go to bunkering.

IMAGE: The Vihreasaari site where Hy2Gen plans the e-methanol plant at the Port of Oulu. City of Oulu

The local city government said that it will discuss granting a planning reservation for the plant in the Vihreäsaari area at a meeting on 25 November. This would allow the company to reserve the specific site while it prepares detailed plans.

The proposed plant in Oulu will have an electrolyser capacity of 200 MW, the government body said.

The e-methanol will be produced by combining hydrogen made through renewable-powered electrolysis with CO2 captured from industrial processes.

Electricity makes up the lion share of e-methanol production costs because electrolysers consume large amounts of power to produce hydrogen, and securing sufficiently cheap and stable renewable electricity remains a key challenge for developers.

“Finland’s strength in attracting new plants is its electricity price, which is among the lowest in Europe. The Oulu region is also the largest producer of renewable electricity in the northern Baltic area,” says BusinessOulu’s customer relations manager Janne Hietaniemi.

Hy2Gen has not made a final decision on the plant and will move on to the detailed planning phase only after the reservation is granted.

It is expected to release more information on the project at an event on 12 February 2026.

If the Hy2Gen project is completed, it would make Oulu the biggest hub for synthetic fuel production in the Baltic Sea region. France’s Verso Energy, Germany’s Energiequelle and ABO Energy and Finland’s P2X and Oulun Energia have also previously announced similar plants in the port.

By Nachiket Tekawade

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