Fortum’s Investment in New Hydrogen Test Facility: A Step Towards Greener Energy Sources and Market Leadership

Fortum, a leading energy company, is set to invest in a new hydrogen test facility next to its Loviisa nuclear power plant in Finland. The value of the pilot project is 17 million euros and will be financed entirely from Fortum’s research and development funds. Construction of the facility is set to begin this summer, with the plant expected to be operational by the end of 2025.

The pilot plant will test two different hydrogen production technologies – alkali technology and PEM technology – to evaluate their potential for large-scale production. The goal is to gather knowledge about hydrogen production technology, operation, maintenance, and safety while also studying market dynamics. Sipila explains that Fortum aims to understand its role in the entire hydrogen value chain whether as a producer or a partner in downstream activities.

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. Hydrogen production is seen as crucial for transitioning to greener energy sources since clean hydrogen can replace fossil hydrocarbons.

Sipila highlights the importance of understanding both technical aspects of hydrogen production and market dynamics. Fortum aims to position itself strategically in the growing market for clean hydrogen and its derivatives. Based on market conditions and evolving business opportunities, Fortum may update its strategy for hydrogen technology after 2028.

Overall, Fortum’s investment in this new pilot plant represents an important step towards realizing its vision of transitioning to greener energy sources while maintaining its position as a leader in the energy industry.