Joutseno methanation plant investment not currently feasible

Gasum, Kemira and the City of Lappeenranta assessed the techno-economic feasibility of a renewable gas production plant, or methanation plant, in Joutseno, Finland, in spring 2017. Studies relating to the methanation plant were then continued, including assessments of gas production costs, implementation and profitability. A joint decision has now been made by the actors involved to discontinue further plans concerning the project due to its economic unfeasibility. The project will not be implemented in the near future.

”We continued studies relating to the Joutseno methanation plan, focusing especially on gas production costs and implementation as well as profitability. Now that more detailed profitability calculations are available, we’re discontinuing the project. The decision was made jointly by all actors involved. In the future, it may be possible that the project may be reconsidered once progress has been made in technology and the renewable gas market,” says Jouni Haikarainen, Senior Vice President, Natural Gas, from Gasum.

”Using renewable electricity for hydrocarbon production is one of the key technologies aiming to achieve a carbon-neutral society. Lappeenranta University of Technology and the City of Lappeenranta are at the forefront of development of this technology. It’s a pity time wasn’t ripe for this key project in circular economy and industrial integration,” says Development Director Markku Mäki-Hokkonen from the City of Lappeenranta.

If realized, the methanation plant would have been by far the largest plant in the world producing renewable methane from hydrogen and carbon dioxide with its capacity for 18–28 megawatts. The plant concept would have been based on utilizing side streams from local industry. The results of the techno-economic feasibility study show that the Joutseno methanation plant would have been technically feasible.

For more information please contact:

Jouni Haikaranen, Senior Vice President, Natural Gas, Gasum
Phone: +358 40 709 5690, firstname.surname(a)gasum.com

Markku Mäki-Hokkonen, Development Manager, City of Lappeenranta
Phone: +358 40 569 5515 firstname.surname(a)lappeenranta.fi