A groundbreaking green ammonia production facility in Naantali, Finland, is nearing fruition with the announcement of a partnership between Green North Energy and Meridiam, a French firm specializing in sustainable infrastructure investments. The €600 million project is designed to produce ammonia in a carbon-neutral manner, positioning Naantali as a hub for green energy innovation.
“This is a major milestone for the project, although there is still much work to be done,” said Jussi Ylinen, CEO of Green North Energy. He emphasized that securing Meridiam as a partner marks significant progress toward realizing the ambitious venture.
Green ammonia is a vital resource for agriculture, serving as a carbon-neutral alternative to traditional ammonia, which contributes approximately 2% of global carbon dioxide emissions. The facility is expected to reduce annual emissions by 330,000 tons, equivalent to the yearly emissions of about 165,000 passenger cars.
Strategic and Environmental Benefits
The Naantali facility aims to enhance Finland’s and Europe’s self-reliance on ammonia, reducing dependency on imports from countries such as Russia. Additionally, green ammonia offers potential as a low-carbon fuel for maritime transport, further contributing to emissions reductions in the region.
Green North Energy highlighted Naantali’s strategic advantages, including its robust logistics and transport infrastructure, as ideal for hosting the facility. The company plans to make a final investment decision in 2025, pending public support and the introduction of tax incentives to stimulate large-scale green projects.
Public Support and Incentives
The project's success hinges on securing public funding and policy support from Finland and the European Union. Specifically, Green North Energy is looking to benefit from proposed tax support measures that would allow companies investing in Finland to claim up to 20% of their investment, capped at €150 million, as a corporate tax credit upon project completion.
Broader Implications
The initiative represents a significant stride in reducing the environmental impact of ammonia production, which is currently dominated by “gray ammonia” derived from fossil fuels. By creating a sustainable alternative, the facility aims to transform the agricultural and energy sectors while aligning with European goals for carbon neutrality.
