Fortum, a leading energy company, is investing in a new hydrogen test facility next to the Loviisa nuclear power plant in Finland. The pilot plant will be Fortum’s first step in exploring the business opportunities related to hydrogen and will help the company gain knowledge about hydrogen production technology, operation, maintenance, and safety.
The value of the test facility is 17 million euros and will be financed entirely from Fortum’s research and development funds. Construction is set to begin this summer, with the facility expected to be operational by the end of 2025. The pilot plant will have two electrolyzers – one using alkali technology and the other using PEM technology – that will allow Fortum to study both technologies for large-scale production.
Hydrogen production is critical for the transition to greener energy sources as clean hydrogen can replace fossil hydrocarbons. Fortum’s strategy includes research on hydrogen technology in small-scale projects in the Nordic countries. The company is also exploring potential investments in small modular nuclear reactors as part of its core business activities. The pilot plant in Loviisa will provide an opportunity for Fortum to evaluate its role in the entire hydrogen value chain whether as a producer or a partner in downstream activities.
Satu Sipila, who oversees the P2X business at Fortum, highlights that understanding not only technical aspects but market dynamics is crucial when it comes to hydrogen production. The company aims to position itself strategically in the growing market for clean hydrogen and its derivatives by updating its strategy for hydrogen technology after 2028 based on market conditions and evolving business opportunities.
Overall, Fortum’s investment in this pilot plant represents a significant step towards building a sustainable future through renewable energy sources such as clean hydrogen.