Fortum Takes a Leap Toward Hydrogen Technology with New Pilot Plant Investment
Fortum, an energy company, is investing in a new hydrogen test facility located near the Loviisa nuclear power plant in Finland. The pilot plant, valued at 17 million euros, will be funded entirely by Fortum’s research and development funds. Construction of the facility is set to begin in the summer of 2022 with an expected completion date by the end of 2025.
Sipola, who leads Fortum’s P2X business, describes the pilot plant as a significant step towards exploring the business opportunities surrounding hydrogen. The facility will house two electrolyzers using alkaline and PEM technologies to produce clean hydrogen. By testing these mature technologies, Fortum aims to gather knowledge on production, operation, and maintenance.
The pilot plant will also include a filling station to distribute hydrogen to industrial customers. Fortum plans to utilize the facility for approximately two years to collect data and experiences that will inform future investments and strategic decisions regarding hydrogen production. The company’s overall strategy is to research hydrogen technology in small-scale Nordic projects to assess market opportunities and potential roles in the hydrogen value chain.
The investment in the pilot plant may prompt updates to Fortum’s hydrogen strategy post-2028 based on market dynamics and business opportunities. The company is currently considering its position in the hydrogen value chain and whether it will focus on being a hydrogen producer or a partner in various stages of production. This strategic evaluation may occur earlier than 2028 depending on evolving market landscape and technological advancements in the hydrogen industry.
Fortum sees this pilot plant as its first step towards exploring business opportunities surrounding hydrogen technology. With this project, they hope to gain knowledge about production process, operation and maintenance of mature technologies using alkaline and PEM methods which could pave way for future investments and strategic decisions regarding hydrogen production.
Overall, Fortum’s approach is cautious yet optimistic about the potential role that hydrogen could play in transitioning towards a low-carbon economy. They understand that further research is necessary before fully committing to large-scale investments in this emerging technology but are excited about its potential benefits for both their business bottom line as well as society at large.
In conclusion, Fortum’s investment in a new hydrogen test facility is an important step towards exploring business opportunities surrounding this emerging technology while also gathering vital data that could inform future investments and strategic decisions regarding its use within their operations.
