The City of Oulu and ABO Energy Suomi Oy have signed a cooperation agreement on a hydrogen project in the Pyyryväinen green transition zone. The agreement sets a framework for joint work on project development, land-use planning and permitting. The city sees it as a key step towards a final investment decision, which has not yet been taken.

What the agreement covers

The agreement continues the site reservation signed in 2025. It establishes a framework for collaboration between the two parties on project development, land-use planning and permitting. According to the city, it is a milestone that gives a basis for continued joint planning between ABO Energy and Oulu.

The planned plant

  • Electrolysis capacity: up to 600 MW, which could be reached in two to three development phases.
  • Site area: up to 41 hectares.
  • Possible further products: synthetic methanol and sustainable aviation fuel (e-SAF).
  • Waste heat: expected to be used in the local district heating network.

What happens next

ABO Energy Suomi is part of the German renewable energy developer ABO Energy, which will make the investment decision after further project development, technical assessments and commercial evaluation. Work is already under way on the partial master plan for the Pyyryväinen green transition area. Land-use planning will take biodiversity and consumption compensation into account throughout the process and follow the principles of nature positivity.

Why Oulu is building a hydrogen hub

According to the city, Oulu is currently home to the largest pipeline of planned clean hydrogen production projects in the Baltic Sea region. Mayor Ari Alatossava said the objective is to establish the entire hydrogen value chain, from production to downstream processing and end-use applications. The city’s new strategy underpins this work. Finland has some of Europe’s lowest electricity prices, and the Oulu region is the country’s largest renewable power generation area. Oulu has a deep-water port in the international TEN-T core network, as well as an extensive railway and road network. At the national level, Gasgrid Finland is planning a hydrogen transmission network. The University of Oulu is recognised as a major centre for hydrogen research. Earlier city news reported that ABO Energy was exploring hydrogen and synthetic fuel production in Oulu.