Ministry of Economic Affairs and Employment

Publication date 14.10.2024 – Press Release

The Ministry of Economic Affairs and Employment has granted a total of EUR 44,546,484 in investment aid to 12 projects under the national Recovery and Resilience Plan (RRP). Moreover, by a decision supported by the Ministerial Finance Committee on 3 October, EUR 28,048,200 was granted to Nordic Ren-Gas Oy for a large demonstration project on new energy technology.

“It is great that clean energy projects are progressing across Finland, and with the help of this funding, we can accelerate the transition to cleaner solutions even faster and more comprehensively. Carbon capture and strengthening value chains are being promoted in several supported projects, both in the production of electrofuels in Lahti and with biogas plant projects,” says Minister of the Environment and Climate, Kai Mykkänen.

Overall, EUR 31.1 million in investment aid was granted to seven new energy technology projects and EUR 13.4 million to five energy infrastructure and electrification projects. In accordance with the RRP, the aid for the projects will come from the EU’s Recovery and Resilience Facility (RRF). 

The supported investments in new energy technology concern the production of biogas and solar electricity. Investments in energy infrastructure and the industrial electrification and decarbonisation are related to the utilisation of waste heat, energy storage and electrification of industrial processes. The supported large demonstration project concerns the production of electrofuel. 

“With these projects, the clean energy transition and nutrient cycling in agriculture are taking significant steps forward. It is excellent that, after years of hiatus, we are now able to support major biogas projects. As these projects move forward, it is important that solutions are also created for refining nutrient residues for agricultural use across a sufficiently wide area, so that we simultaneously address the runoff issues caused by nutrient concentrations,” Mykkänen emphasizes.

The granting of aid is based on overall consideration and comparison of projects, with special attention paid to the feasibility of projects, as the investments must be completed by 30 June 2026. 

The projects are estimated to reduce carbon dioxide emissions by more than 170,000 tonnes per year. The employment impact of the projects during construction is estimated to be 416 person-years, and the projects would create an estimated 23 new jobs.

EUR 13,422,938 for energy infrastructure and electrification projects

• Vaasan Voima Oy was granted EUR 5,815,450 for changes in the underground heat storage in Vaasa to increase its temperature and output. 
• KSS Lämpö Oy was granted EUR 1,556,808 for a heat pump plant and the transfer of heat to a district heating network in Kouvola. 
• Adven Oy was granted EUR 1,655,166 for the utilisation of waste heat from a refrigeration plant in a district heating network.
• Sähkö-Virkeät Oy was granted EUR 3,020,569 to enable future grid connection capacity for renewable energy in Keuruu. 
• Tornion Voima Oy was granted EUR 1,374,945 for the electrification of heating systems in Kemi. 

EUR 31,141,546 for new energy technology projects

• Vesilahti-Lempäälän Biopower Oy was granted EUR 1,388,340 for the construction of a biogas plant in Vesilahti.
• BioAurora Oy was granted EUR 4,176,852 for the construction of a biogas plant in Punkalaidun.
• Botnia Gas Oy was granted EUR 3,969,000 for the construction of a biogas plant in Kaustinen.
• Honkainfra Oy was granted EUR 5,599,522 for the construction of a biogas plant in Puolanka.
• Vieremän Lämpö ja Vesi Oy was granted 5,970,454 for the construction of a biogas plant in Vieremä.
• Kaskisuon Aurinkovoimala Oy was granted EUR 6,646,727 for the construction of a solar power plant in Joroinen.
• Linnankosken Aurinkovoimala Oy was granted EUR 3,390,651 for the construction of a solar power plant in Imatra.

EUR 28,048,200 for a large demonstration project on new energy technology

• Nordic Ren-Gas Oy was granted EUR 28,048,200 for an investment in methanation of renewable hydrogen in Lahti.

A total of EUR 469 million in RFF energy aid has been allocated to 77 projects

The made aid decisions are among the last RRF energy investment aid decisions by the Ministry of Economic Affairs and Employment. In 2022-2024, the Ministry has granted a total of approximately EUR 469 million in RRF energy aid to 77 projects. In addition, Business Finland has granted a total of EUR 61.3 million in RRF energy aid to two IPCEIs (Important Projects of Common European Interest) on clean hydrogen and around EUR 4.9 million to five industrial electrification projects. 

Regarding the large-scale demonstration projects on new energy technology, the aim is to make more decisions on the applications received in 2023 in autumn 2024.

Inquiries: 
Pekka Grönlund, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 064 815
Pekka Kärpänen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 882 (energy infrastructure and electrification projects) 
Irene Heikkilä, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 158 (biogas projects)
Salla Palander, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 049 (solar electricity projects)

Source : Valtioneuvosto