(Oulu, Finland) – The city of Oulu and Abo Energy Suomi Oy have signed a cooperation agreement for the hydrogen project in Pyyryväinen. According to the agreement, this creates "a framework for cooperation between the two parties in project development, land-use planning, and permitting." The final phase of the project could see the installation of 600 megawatts of electrolysis capacity in several stages.
Planning map of sites for hydrogen projects in Oulu (as of 2025). © City of Oulu
In addition to hydrogen production, the Finnish subsidiary of Wiesbaden-based ABO Energy GmbH is evaluating the possibilities for producing synthetic methanol and sustainable aviation fuel (eSAF) in the coastal city on the Gulf of Bothnia. The waste heat generated by the production process is intended to be used in the local district heating network. The agreement now reached is based on agreements from 2025. At that time, it was stated that the first phase of hydrogen production could be commissioned around 2034 to 2036.
The pipeline network planned by Gasgrid is to be built along the country's west coast. The map shows an update published at the end of November 2024. © Gasgrid Finland Oy
The final investment decision (FID) has not yet been made. “Developing green hydrogen projects requires a strong combination of infrastructure, access to renewable energy, and close collaboration with local stakeholders. We look forward to further exploring the potential of this project with our partners,” says Amanda Cardwell, Head of Project Development at ABO Energy Suomi, in a non-binding statement.
Oulu currently hosts the largest pipeline of planned clean hydrogen production projects in the Baltic Sea region and is working on a "master plan" for the Pyyryväinen area. "Our goal is to establish the entire hydrogen value chain, from production and downstream processing to end-use applications," says Ari Alatossava, Mayor of Oulu. The long-term collaboration with Abo Energy is an "important next step forward."
Development of hydrogen-related industries
The region is the largest area for generating electricity from renewable sources. The city is "systematically developing infrastructure to support the growth of hydrogen-related industries." Oulu has a deep-water port that is part of the international Trans-European Transport Network (TEN-T), as well as an extensive rail and road network. The University of Oulu is also involved in developing the hydrogen economy.
Oulu has recently (as reported) already concluded cooperation agreements with several companies for the Pyyryväinen development area. If all plans are implemented, this could mean investments in the billions. To support the hydrogen projects, the Finnish state-owned gas network operator Gasgrid Finland Oy is working on building a hydrogen transport infrastructure to connect the production facilities in Oulu with the rest of Finland and other European countries, including Germany. According to the company, Abo Energy's plant would also be connected to Gasgrid's planned national hydrogen network, as was already stated in 2025 ( more on this ).
Abo Energy Germany is undergoing restructuring
Abo Energy GmbH ended its first fiscal year in Germany with a loss and is working on restructuring. In 2025, the company incurred a loss of €170 million. Abo Energy recently sold an electrolyzer and hydrogen refueling station in Hünfeld to Tyczka Hydrogen. Furthermore, its Hungarian and Polish subsidiaries are being acquired by the Greek energy company PPC. According to the company, this includes a pipeline of projects under development with a total capacity of approximately two gigawatts, five solar parks already in operation, and another solar park nearing completion.
However, according to Abo Energy, this has no impact on the development of a restructuring and financing plan. "Following the sales of our Greek subsidiary and a large part of the Finnish wind power pipeline, the sale of the Hungarian and Polish subsidiaries is a further step towards focusing on the countries where we can be economically successful in the long term," said Managing Director Karsten Schlageter at the beginning of August. A standstill agreement with investors was extended in July until November 30, 2026.
Photo above
Pyyryväinen is currently a largely undeveloped area of approximately 1.400 hectares adjacent to the Välikylä industrial park and near the A20 motorway. The municipality of Oulu plans to develop this region, located less than ten kilometers northeast of the city center, into an industrial cluster with a "green transformation." © City of Oulu
