The project will support the promoter's production of Renewable Fuels of Non-Biological Origin (RFNBO)-compliant e-methanol (140 kt/year), to be marketed as e-fuel, based on renewable hydrogen (H₂) from desalinated seawater through a very large-scale (200 MW) electrolyser, combined with partially biogenic CO₂ and electricity from existing renewable energy facilities, located in Kristinestad, south-west Finland.
The key driver of the promoter's business strategy appears to be the governmental objective of reducing CO₂ emissions in the transport sector, particularly reflected in the Roadmap to Fossil-Free Transport and supported by an ambitious target for renewable fuel distribution by 2030. The project will contribute to both EU and national climate and renewable energy targets for 2030 by producing renewable hydrogen and its derivatives (synthetic fuels) for use in transport. This is in line with the EIB Energy Lending Policy, provided the project meets the EU Taxonomy's carbon intensity threshold for hydrogen production.
Production and storage of H2 falls under item 6a,c of Annex II of environmental impact assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU), for which Member States shall determine whether the project shall be made subject to a mandatory EIA based on defined criteria. Further, H2 production needs to demonstrate compliance with applicable industrial safety regulations related to the handling and storage of chemical products in terms of safety and accident prevention, such as the SEVESO Directive. According to the promoter, the documentation for an EIAs have been submitted to the competent authorities. H2 production projects need to be aligned with and to be compliant to the sustainability and greenhouse gas emissions savings criteria of relevant EU directives and regulations, all of which are transposed into and embedded in the EIB's Energy Lending Policy and the Climate Bank Roadmap. The latter indicates that a substantial contribution to climate mitigation by H2 manufacturing is achievable at or below a carbon intensity threshold, set by the EU Taxonomy. Further, such projects need also to demonstrate an acceptable energy conversion efficiency.
The project will be operating without exclusive or special rights within the meaning of the EU Utilities Directive 2004/17/EC c.q. 2014/25/EU hence private sector procurement procedures will apply. Equipment and works are expected to be purchased through several contracts for installation and infrastructure (Balance of Plant) of components for a H2 module.