Finland’s largest hydrogen processing plant moves forward as Verso Energy and Oulu strengthen green energy collaboration

The City of Oulu and Verso Energy, a French energy company, have signed a co-operation agreement to develop Finland‘s largest hydrogen processing plant, a major step toward expanding sustainable aviation fuel (SAF) production in Northern Europe. The agreement, formalized at the Northern Power Forum, solidifies Oulu’s position as a key Nordic hydrogen hub while reinforcing Finland’s commitment to green transition investments.

The proposed plant, set to be constructed in the Port of Oulu, will have an annual e-SAF production capacity of 80,000 tonnes and represents a significant €1.4 billion investment. Once operational, the facility is expected to generate approximately 250 new jobs, further boosting Finland’s clean energy sector.

How Will Oulu’s Hydrogen Processing Plant Support the Green Transition?

The hydrogen processing plant planned by Verso Energy aligns with Europe’s increasing push toward decarbonizing industries, particularly aviation. The European Union has mandated that, starting this year, fuel used at the bloc’s largest airports must contain at least 2% SAF. However, Finland currently lacks domestic SAF production plants, making the Oulu facility a strategic solution to meeting these sustainability goals.

Antoine Huard, CEO of Verso Energy, emphasized the significance of Finland as an emerging leader in the sustainable aviation fuel sector. Speaking at the Northern Power Forum, he highlighted Oulu’s competitive advantages for e-SAF production, citing its robust infrastructure and commitment to renewable energy.

“Finland is a very attractive country for e-SAF production, and the Oulu site has all the qualities to be highly competitive at the European level,” Huard stated.

He further noted that strong collaboration with the City and Port of Oulu has been instrumental in moving the project forward. “This partnership showcases Finland’s ability to combine job creation, industrial growth, and sustainability, making it a key player in the global energy transition,” he added.

What Makes the Oulu Hydrogen Plant a Strategic Project for Finland?

The Port of Oulu provides an optimal location for the hydrogen processing plant, given its existing infrastructure and accessibility to energy distribution networks. The project is a significant milestone for Verso Energy, as it marks one of the company’s first international ventures. While Verso Energy has several hydrogen and synthetic fuel plants under development in France, the Oulu plant is among its most ambitious initiatives outside its home market.

By focusing on synthetic fuel production for both aviation and maritime industries, Verso Energy aims to bridge the gap between clean hydrogen production and practical applications in the transportation sector. The facility is expected to contribute to Finland’s long-term climate neutrality goals while providing a much-needed domestic supply of sustainable aviation fuel.

How Will Oulu Facilitate the Hydrogen Plant’s Development?

The City of Oulu is actively supporting the project by advancing the zoning process for the Port of Oulu’s green transition industrial area, ensuring that it aligns with the requirements of both the hydrogen processing plant and the broader green energy infrastructure.

Marko Kilpeläinen, Director of Urban Environment Services for the City of Oulu, highlighted Finland’s unique ability to attract green transition investments, pointing to the country’s flexible zoning processes as a key advantage for large-scale renewable energy projects.

“In Finland, the zoning process can run parallel to a company’s project planning, offering more flexibility compared to some other countries. This allows us to fast-track approvals and ensure seamless integration between industrial expansion and environmental sustainability,” Kilpeläinen explained.

What’s Next for the Verso Energy and Oulu Partnership?

The co-operation agreement between Verso Energy and the City of Oulu will remain in effect until the end of 2026, during which both parties will work toward finalizing an implementation agreement. This next phase will define threshold investments, allocate responsibilities, and outline a timeline for full-scale construction and operation of the hydrogen processing plant.

Mayor of Oulu Ari Alatossava expressed optimism about the project’s progress, underscoring its importance in positioning Oulu as a leader in clean energy innovation.

“I am glad that Verso’s project has moved forward so smoothly. This demonstrates that our city plays a valuable role in the global green transition. I want to thank our experts for their dedicated work so far and Business Finland for facilitating the contact with Verso Energy,” Alatossava stated.

As Finland accelerates its clean hydrogen and synthetic fuel initiatives, the collaboration between Verso Energy and Oulu represents a pivotal moment in the country’s energy transformation. The development of the hydrogen processing plant will not only strengthen Finland’s sustainable aviation fuel supply chain but also reinforce its role as a key contributor to Europe’s green energy future.