| Project Detail |
The project concerns the design, implementation and operation of a renewable hydrogen production facility (40 to 50 MW) for the production of synthetic methane, located next to an existing CHP, close to the city of Lahti, Finland. The transportation segment accounts for 22% of the CO2 emissions in Finland, out of which 95% is from road transportation. The country is committed to 50% reduction by2030 compared to 2005 level, aiming to become carbon-free by 2045. In line with the EU regulation, the country is reducing the use of fossil-based fuels in traffic, by implementing a renewable fuel distribution mandate for fuel distributors, requiring a certain share of renewable content within total fuel volume sold. The Finnish government has created a Roadmap to Fossil-Free Transport, which considers biogas as key to reduce emissions from heavy duty vehicle (HDV) transportation. The Roadmap envisages financial incentives, targeting 6200 HDV by2030 to be operated on renewable gas, that should cover the difference between the purchase price of a gas-fuelled truck and the diesel option.
Objectives
The aim is to support EU and national climate and renewable targets for 2030 through the production of renewable hydrogen and derivates (synthetic fuels) to be used in transport. The project would address two main market failures, i.e.: (i) negative carbon externalities, as it ensures the integration of a new renewable fuel in the transport sector, through a large-scale implementation of hydrogen technologies, and (ii) positive learning externalities, as renewable hydrogen and synthetic fuel production can be considered a technology at an early stage of deployment with a significant potential for future cost decrease.
Sector(s)
Industry - Manufacturing
Proposed EIB finance (Approximate amount)
not disclosed
Total cost (Approximate amount)
not disclosed |
