Fortum, a leading energy company, has announced plans to invest in a new hydrogen test facility next to the Loviisa nuclear power plant in Finland. The pilot plant will be used to study two different hydrogen production technologies using alkali and PEM technology. The project is financed entirely from Fortum’s research and development funds, valued at 17 million euros. Construction is set to begin this summer, with the facility expected to be operational by the end of 2025.
The pilot plant marks Fortum’s first step in exploring the business opportunities related to hydrogen. By conducting the project mainly in-house, Fortum aims to gain knowledge about hydrogen production technology, operation, maintenance, and safety. The goal is to evaluate both technologies for their potential for large-scale production and understand their role in the transition to greener energy sources.
Hydrogen production is considered crucial for the transition away from fossil fuels towards cleaner energy sources. Fortum’s strategy includes research on hydrogen technology in small-scale projects across the Nordic region. In addition, the company is exploring potential investments in small modular nuclear reactors as part of its core business activities. The pilot plant will allow Fortum to gain insights into the business opportunities surrounding green hydrogen and its derivatives over a period of approximately two years.
Sipola highlights that it’s not just about understanding the technical aspects of hydrogen production but also market dynamics. Fortum aims to position itself strategically in the growing market for clean hydrogen and its derivatives whether as a producer or partner in downstream activities. Ultimately, this investment will help Fortum update its strategy for hydrogen technology based on market conditions and evolving business opportunities after 2028.
In conclusion, Fortum’s investment in a new hydrogen test facility represents an exciting opportunity for the company to explore new business opportunities related to cleaner energy sources while gaining valuable knowledge about hydrogen production technology and market dynamics.
