Norwegian energy company Freija AS is planning large-scale clean fuel production in the Tampere region in order to decarbonize heavy duty transport across Europe. We asked Freija’s CEO how the project – one of the biggest of its kind in Europe – is progressing – and why the company wanted to establish its key operations in Finland?
Freija is planning to make eMethane at scale from clean hydrogen and biogenic CO2 based on a cost competitive, proprietary and modularized solution with an integrated electrolyser facility.
Freija’s CEO Kristian Hauglum says that the company wants to meet the strong demand for eMethane brought about by EU directives – and according to Hauglum, Finland is the best place to accomplish this.
– When we started looking for a location for our production plant, Finland soon stood out from the rest, in many ways, Hauglum says.
– First of all, the Finnish government’s goal to reduce carbon dioxide emissions is ambitious, and it offers green industry players strong and predictable operating conditions, fossil-free energy and a very well-trained workforce. The power grid provides high performance and the gas pipeline is connected to Europe, thanks to Gasgrid, he lists.
Eye on Tampere Region
The Tampere Region was eventually chosen since it provides considerable scaling opportunities, offering, among other things, biogenic carbon dioxide capture, renewable energy and capable local partners.
– Biogenic CO2, especially produced by the modern Finnish forest industry, is a commodity with high market potential, Hauglum believes.
Upon construction, the plant will bring significant investments to the region and create jobs. At the same time, it will enable relevant reductions in CO2 emissions in European traffic.
So what is the status of the project right now? – Hauglum says that the environmental impact assessment (EIA) program has been initiated, and the company has kicked off also front-end engineering and design studies.
– The final investment decision will be made in the third quarter of 2026, he adds. The value of the would-be investment is around 400-500 million euros.
Production start in four years?
The project is planned to be implemented in three phases. The production capacity, per phase, is 58,000 tons of renewable eMethane.
– Production in the first phase of the plant could start in 2029, CEO Hauglum says.
Hauglum believes that Freija has a great shot of success with its eMethane plans. After all, the European heavy transport and shipping companies are increasing demand for eMethane as they strive to reduce emissions and comply with EU regulations. Clean fuels such as eMethane are carbon-neutral alternatives to fossil fuels in trucking and as fuel for ships.
– Freija has already signed several cooperation agreements with various partners, covering 60% of the capacity of the first phase. Negotiations are underway for more, reveals Hauglum.
Multi-gas platform emerging
eMethane is a ready-to-use renewable fuel of non-biological origin (RFNBO) and a direct replacement for fossil gas, using existing technology and infrastructure including direct injection into the European natural gas grid. For this reason, Gasgrid is one of Freija’s core strategic partners.
– Gasgrid is very important to us. The company has been very open and cooperative towards us from the start, Hauglum says.
The CEO emphasizes the substantial competitive advantage that Gasgrid’s multi-gas network enables. – We have an efficient way to deliver our product, he sums up.
Today, transport represents 16% of global CO2 emissions. The eMethane from one of Freija’s plants will enable removal of 200,000 tons of carbon annually when replacing fossil fuels.
Room to expand later
The selected site covers 15 hectares, with the potential to expand nearby. Power grid development is ongoing in cooperation with local transmission system operators. Freija is also looking to generate excessive heat which will feed into the Tampere Region district heating system, adding further positive local ripple effects.
Hauglum believes that the main challenge of the project is to bring many separate issues – ranging from gas and power connectivity to CO2 capture – together in a smart and sustainable way. He is, however, confident that Freija and her partners are able to make it work.
– The total package is there – and that’s the reason we wanted to come to Finland in the first place.