Germany-based Hy2gen has signed a letter of intent with Finland’s City of Oulu to develop a 200MW hydrogen-based e-fuel plant.

In a joint announcement the pair pointed to collaborating to plan constructing the facility on the green transition industrial area in Vihreäsaari.

Hy2gen initially secured the land for the plant in November 2025, and a further cooperation agreement defining details of the process is expected within 2026.

Its proposed plan is expected to position Oulu as the largest hub for synthetic fuel production in the Baltic Sea region based on the number of power-to-X projects being developed.