Sweco to conduct the pre-design for St1’s Power-to-Methanol Lappeenranta project

Press release by Sweco Finland

Published January 10^th 2023 in Helsinki

Energy company St1 is planning Finland’s first commercial scale synthetic methanol production facility in connection to Finnsementti´s factory in Lappeenranta. Finnsementti is Finland´s largest cement manufacturer.

The plant in Lappeenranta will produce synthetic methanol from green hydrogen and carbon dioxide emissions captured from limestone. The plant will be producing about 25,000 tons of synthetic methanol per year when completed in 2026. Produced synthetic methanol could be put on the market through the existing distribution network as marine and road fuel.

St1’s pilot aims to develop an amplifiable and scalable synthetic methanol production concept. The Ministry of Economic Affairs and Employment of Finland has allocated EUR 35.4 million in funding from the European Recovery and Recovery Facility instrument for the project. The execution of the project also requires approval from the European Commission and a positive investment decision from the company itself.

“The Lappeenranta synthetic methanol project is our first P2X project, so a lot of new lessons are being learned throughout. These findings can also be used to advance other P2X projects. P2X is an integral part of the sustainable transport solution in addition to electricity and biofuels, and the solutions it brings will especially support heavy traffic and long-distance transport, such as sea and air. In P2X projects, a competent and smooth collaboration built on the same value base is crucial. Without good partners, the projects would not go through”, says Riitta Silvennoinen, Head of Energy transition business at St1.

Electric fuels processed from green hydrogen are key to enabling a green transition for cargo and air transport, as well as for sectors that are otherwise difficult to electrify. At the same time, it is possible to implement emission reductions in heavy industry sectors where reductions are more challenging to achieve. According to a recent research report from LUT University on energy transition, as many as 93% of transport fuels in 2020 were still fossil origin, although the share of renewable energy in electricity and heat generation is already significant.

“St1 is an innovative energy operator whose Lappeenranta project has been identified as one of the strong openings for the development of the P2X sector in Finland. The growing interest in hydrogen production opens up new business opportunities for companies, and synthetic methanol has an interesting demand outlook in the near future even in export. Our long-term partnership with St1 puts us well equipped to support the progress of the project with high quality within the target schedule”, comments Development Manager Tomas Norrena at Sweco Finland.

More information:

Tuomas Salminen, Business Unit Director, Sweco Finland, +358 400 819547, tuomas.salminen@sweco.fi

Tim Karike, Head of PR & Media Relations, Sweco Finland, +358 44 5075562, tim.karike@sweco.fi

Riitta Silvennoinen, Head of Energy transition business, St1, +358 50 589 3036, riitta.silvennoinen@st1.com

Picture: Finnsementti´s current production facility in Lappeenranta by St1