Energy company Freija received a tax credit of over 110 million for its synthetic fuel plant in Nokia

The plan by Norwegian energy company Freija to build a synthetic e-methane production facility at the ECO3 business area in Nokia, Pirkanmaa, is beginning to look increasingly likely. The company was granted a €110.6 million tax credit under Business Finland’s support programme for investments targeting a climate-neutral economy. The hydrogen community gathers in Tampere today, Wednesday, and tomorrow, Thursday, for the Hydrogen Summit & Expo.

Text, photos and videos: Petri Kangas / Business Tampere
Video interviews: Anna Ryhänen / Business Tampere

The arrival of the Norwegian energy company Freija’s e-methane plant in Nokia, Pirkanmaa, advanced at the turn of the year, when the project was awarded a €110.6 million tax credit. The granting authority is Business Finland, which announced the recipients on December 19. In total, 37 investments received a tax credit.

“Altogether, tax credits amounting to €2 billion were granted. Companies will be able to utilise the awarded tax credit once the investment has been completed and taken into operation in accordance with the permit conditions issued by environmental and other authorities,” says Project Director Sini Uuttu of Business Finland in a news item published on the organisation’s website.

According to Business Finland, the rationale behind the support programme for investments targeting a climate-neutral economy is the intensifying competition between countries for major investments. The aim of the support is to ensure that key industrial investments are realised in Finland.

Freija produces e-methane, or synthetic natural gas, from green hydrogen and biogenic carbon dioxide. It can replace fossil fuels.

This is what it’s about

Norwegian energy company Freija is planning an e-methane plant in Nokia, Pirkanmaa, at the ECO3 area.
Production is based on hydrogen produced with renewable electricity and biogenic carbon dioxide.
The project is intended to be implemented in phases, in three separate entities.
The production capacity of one phase is 58 000 tonnes of e-methane per year.
The aim is to launch the first production phase towards the end of this decade.
At the end of 2025, Freija was granted a €110.6 million tax credit for renewable energy production as part of Business Finland’s clean transition investment programme.

Sources: Freija, Business Finland, Gasgrid

“I have never seen anything like this before”

Freija’s CEO Kristian Hauglum was pleased with the tax credit awarded in December. Business Tampere interviewed Hauglum and Freija’s Chief Operating Officer Lasse Bergerud-Wichstrømiä in Tampere at a hydrogen industry event on Wednesday.

“The tax credit is extremely important for us. It helps make Finland competitive in the hydrogen economy and reduces costs, especially during the first years of the project,” Bergerud-Wichstrøm says.

“This is new business and it involves risk. That’s why the support we receive from Finland, and especially this tax credit, has been a decisive factor for the project. In Tampere, biogenic carbon dioxide is available from local sources, and that is precisely one of the reasons why we are here,” Hauglum says.

Overall, Finland receives praise from the Norwegian company.

“There is a genuine willingness in Finland to move projects forward and to develop new business. Honestly speaking, I have never seen anything like this before in my career,” Hauglum adds.

How the tax credit works

According to Business Finland, the application round for tax credits, which closed in August 2025, generated 54 applications. The total volume of the proposed investment projects exceeds €20 billion. The total amount of tax credits applied for was just under €3 billion.

The tax credit is intended for companies making large investments in Finland in sectors targeting a climate-neutral economy. Eligible investment costs must amount to at least €50 million.

The facility or equipment forming the basis of the investment credit must be completed and operational within three years of the granting date. If this 36-month deadline is not met, the amount of the investment credit granted for the project will be reduced by one per cent for each month exceeding the deadline.

Finland’s Minister of Climate and the Environment **Sari Multala** (National Coalition Party). Photographer: Petri Kangas / Business Tampere

Hydrogen summit & expo kicked off in Tampere

As last year, the Tampere Exhibition and Sports Centre is hosting the two-day hydrogen event, with the first day taking place on Wednesday, 14 January. The purpose of the Hydrogen Summit & Expo is to bring together partners, companies and other stakeholders working on post-fossil energy solutions.

As in previous years, the event has attracted not only companies and exhibitors but also senior government representatives. In her keynote speech on Wednesday morning, Finland’s Minister of Climate and the Environment Sari Multala (National Coalition Party) considered Finland’s operating conditions in global markets for new energy solutions.

On Thursday at 10:00, Minister of Economic Affairs Sakari Puisto (The Finns Party) will take the stage. Puisto holds a PhD in physics from the University of Cambridge.

The Tampere region is seeing extensive activity supporting growth in the green transition and renewable energy. Business Tampere is part of the JETSKIR project. JETSKIR supports the just transition of European industrial regions towards a more sustainable and competitive future.

At last year’s event, Tampere Energia and Ren-Gas agreed on the utilisation of carbon dioxide emissions and waste heat. A functioning district heating network, reliable electricity infrastructure and major hydrogen economy projects create favourable conditions for the region to emerge as a frontrunner in the hydrogen industry, assessed Business Tampere’s energy expert Mika Kolari earlier in January.