Tree Energy Solutions (TES) and CPC Finland OY have established a joint company, LUOTO ENERGIA OY, to develop a large-scale electric natural gas (e-NG) project in Finland.
e-NG is a sustainable synthetic methane created by combining green hydrogen with recycled CO2 via the Sabatier process. Chemically identical to natural gas, it can be used as a direct substitute for fossil-based molecules, enabling the decarbonisation of energy systems through existing infrastructure.
The project will deliver an electrolyser capacity of up to 500 megawatts (MW) and is expected to produce around 60,000 tonnes of green hydrogen, which can be converted into over 125,000 tonnes of e-NG per year.
The green hydrogen/e-NG production site, spanning 20 hectares, will be located in the new extension area of the Port of Rauma at Iso Järviluoto.
The produced green hydrogen may make use of the Nordic Hydrogen Route being developed by Gasgrid Finland, whereas the produced e-NG can be liquefied and shipped. Both products can be used to serve the European end market as well as international markets to satisfy the growing demand for renewable gases.
The Port of Rauma is one of Finland’s largest ports, situated in the southern part of the Gulf of Bothnia. At its peak, the construction phase of the project is expected to create more than 1,000 jobs. Once operational, the facility will support approximately 40 permanent jobs focused on plant operation and maintenance.
CPC Finland has already taken the initial key steps in permitting.
The joint venture will continue with technical planning and permitting, aiming to enter the pre-FEED phase in 2026 and reach Final Investment Decision (FID) by 2028. The site already has a legally valid T/kem zoning plan in place, allowing for a shorter path to ready-to-build status.
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“Launching this landmark project in Finland is a major milestone in the energy transition, enabling us to deliver e-NG to the European market, strengthening its energy independence and accelerating the green transition using existing infrastructure. As a drop-in fuel, e-NG can be used to decarbonise sectors such as steel, shipping and heavy transport,” stated Marco Alverà, Co-founder and Chief Executive Officer of TES.
TES is also developing a green energy hub import terminal in Wilhelmshaven, Germany. This terminal will serve as a central point for distributing e-NG and feeding it directly into the existing energy grid.
