French firm Verso Energy signs agreement with city of Oulu, Finland, for eSAF hydrogen plant

From left, Mayor Alatossava, Verso Energy CEO Huard and Marko Mykkänen, CEO for the Port of Oulu. (Photo: City of Oulu)

The City of Oulu, Finland, and French company Verso Energy have signed a cooperation agreement aiming to build a hydrogen-processing plant in Oulu.

Verso Energy intends to construct a plant with a yearly production capacity of 80,000 metric tons of eSAF.

The estimated value of the project is 1.4-billion euros (USD$1.47 billion) and it is expected to create 250 jobs.

Signing the agreement strengthens the city of Oulu’s status as a key hydrogen hub in the Nordics.

Verso Energy’s plant in the port area of Oulu will be the largest of its kind in Finland so far.

Antoine Huard, CEO of Verso Energy, stated at the Northern Power forum in Oulu that the biggest city within the Arctic region has everything it takes to produce emission-free aviation fuel in an environmentally friendly way.

“Finland is a very attractive country for eSAF production, and the Oulu site has all the qualities to be a very competitive site at the European level,” Huard said.

“Successful collaboration with the city and Port of Oulu has been key to the project’s development, showcasing Finland’s potential to combine job creation, industrial growth and sustainability,” he added.

Verso Energy has several hydrogen and synthetic fuel plants in the pipeline in France, but the plant being planned for Oulu is among the company’s first projects abroad.

Verso Energy offers synthetic fuels for both aircraft and ships.

Starting this year, fuel used at the EU’s largest airports must include a 2 percent blend of sustainable aviation fuel (SAF).

Currently, there are no SAF production plants in Finland.

The agreement ensures that the city of Oulu will advance the zoning of the Port of Oulu’s green-transition industrial area, aligning the requirements and goals of both the Verso Energy and the city.

Marko Kilpeläinen, the director of urban environment services for the city of Oulu, highlighted fluent cooperation as Finland’s strength in attracting green-transition investments.

“In Finland, the zoning process can run parallel to a company’s project planning, offering more flexibility compared to some other countries,” Kilpeläinen pointed out.

The cooperation agreement remains in effect until the end of 2026, during which both parties work toward the implementation agreement, defining threshold investments and the division of responsibilities.

“I am glad that Verso’s project has progressed so smoothly,” said Ari Alatossava, the mayor of Oulu. “This indicates that our city has a valuable role to play in the green transition. I want to thank our experts for their efforts so far and Business Finland for facilitating the contact with Verso Energy.”