As the global shift toward cleaner energy gathers pace, Europe has become one of the most active regions investing in renewable fuels. Many countries across the continent are turning to hydrogen to meet EU clean-energy and emission-reduction goals, and Finland is the latest to move in this direction. Hy2Gen has chosen Oulu as the location for a 200 MW hydrogen-based e-fuel production plant, reinforcing the region’s growing role in green energy development, reports Energies Media.
Hy2Gen has secured rights to purchase the land for the project but has not disclosed the cost involved. The Germany-based company plans to share a detailed project outline on February 12, 2026. The announcement comes at a time when Europe is accelerating hydrogen investments following cleaner-energy commitments reiterated at the G20 Summit in South Africa.
Hydrogen-based energy production has expanded more quickly than expected in recent years. Finland, not traditionally known as a major energy producer and dealing with security concerns linked to Russia’s invasion of Ukraine, is now being positioned as a potential leader in the emerging e-fuel sector.
Hy2Gen says the Oulu project could help turn Finland into an important centre for clean-fuel production. The city is attracting a growing number of power-to-X projects and is expected to become the largest hub for e-fuel production in the Baltic Sea region once the plant is established. Oulu’s energy development pipeline also includes Verso Energy’s €1.4-billion sustainable aviation fuel project aimed at producing hydrogen-based synthetic fuels.
Across Europe, several countries are looking to hydrogen to diversify their future energy supply. The Netherlands, for example, has recently partnered with Plug Power to support its hydrogen plans.
Janne Hietaniemi, Key Account Director at BusinessOulu, said the Oulu region has the skill and infrastructure needed to support hydrogen-fuel development, pointing to strong research capabilities at the University of Oulu, favourable local conditions, and good transport links through the EU’s TEN-T network.
He added that Gasgrid Finland is planning a hydrogen transport system that would connect Oulu’s future production facilities with other parts of Finland and Europe.
With Germany recently opening its largest commercial green hydrogen plant in Baden-Württemberg and Finland advancing major new projects, Europe is moving steadily toward building a strong renewable-energy future.
