P2X Solutions has announced that its new production facility, located in Harjavalta, Western Finland, has a capacity of 20 MW and will be followed by a methanation plant. The plant utilizes renewable electricity sources, such as wind power, which is abundant in Finland, giving the hydrogen it produces “green” status.
According to the company, the project received a €26 million investment grant from the Finnish Ministry of Economy and Employment and a €10 million capital loan from the Finnish Climate Fund. CEO Plit said that the investment decision was taken before Russia invaded Ukraine in 2022, but that the development of the green hydrogen market has been made difficult by rising inflation and a resurgence in demand for fossil fuels after the war.
Recently, green hydrogen projects in Europe have been hampered by rising costs and regulatory hurdles. Companies such as oil giant BP and Spanish energy company Repsol have canceled projects, while Norwegian aluminum and energy company Norsk Hydro has also suspended investments. But despite the changing market conditions, P2X Solutions has continued production, basing its strategy on a flexible scaling model.
“Our company strategy has been to scale with market and technological risks in mind. For a smaller plant, it is easier to find enough customers and increase production gradually.” said Plit.
P2X Solutions' green hydrogen production is considered an important step in Europe's sustainable energy transition.
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