City of Oulu and ABO Energy have signed a cooperation agreement regarding a hydrogen plant
The cooperation agreement is a continuation for the site reservation signed in 2025. It establishes a framework for the collaboration between the two parties on project development, land-use planning, and permitting.
ABO Energy is progressing plans for a hydrogen production facility in Oulu. The electrolysis capacity could be expanded to up to 600 MW in two to three development phases. Alongside hydrogen production, the company is assessing opportunities to produce synthetic methanol and sustainable aviation fuel (e-SAF) in Oulu, creating additional value through downstream processing. Waste heat generated by the production process is expected to be utilized within the local district heating network. The proposed development would require a site area of up to 41 hectares.
The agreement is a key step towards final investment decision
The cooperation agreement represents a milestone in the development process and provides a basis for continued joint planning activities between ABO Energy and the city of Oulu.
"The development of green hydrogen projects requires a strong combination of infrastructure, access to renewable energy and close cooperation with local stakeholders. We are pleased to further explore the potential this project has with our partners," says Amanda Cardwell, Head of Project Development at ABO Energy Suomi.
ABO Energy Suomi is part of the German renewable energy developer ABO Energy, which will make an investment decision following further project development, technical assessments and commercial evaluation.
Work is already underway on the partial master plan for the Pyyryväinen green transition area. Land-use planning will take biodiversity and consumption compensation considerations into account throughout the development process – while following the principles of nature positivity.
Oulu strengthens its position as a leading hydrogen hub
Oulu is currently home to the largest pipeline of planned clean hydrogen production projects in the Baltic Sea region.
“Our objective is to establish the entire hydrogen value chain, from production to downstream processing and end-use applications. I am delighted that our long-term cooperation with ABO Energy is now taking this important next step forward,” says Ari Alatossava, Mayor of Oulu.
Oulu’s development into a hydrogen hub is based on the city’s new strategy, which highlights Oulu’s strengths. Finland benefits from some of Europe's lowest electricity prices, while the Oulu region is the country's largest renewable power generation area. The city of Oulu is systematically developing infrastructure to support the growth of hydrogen-related industries. At the national level, Gasgrid Finland is progressing plans for a hydrogen transmission network. Oulu has a deep-water port belonging to the international TEN-T core network, as well as an extensive railway and road network.
Also, the University of Oulu is recognised as a major centre for hydrogen research, providing both advanced R&D capabilities and a growing pool of skilled hydrogen professionals.