E-Methane: a rapid path to reducing traffic emissions
Nordic Ren-Gas is developing a unique network of six production facilities in Finland to produce hydrogen and its derivative, e-methane. Ren-Gas CEO Saara Kujala discussed the potential role of e-methane in reducing traffic emissions during her visit to the Fimpec’s Kumppanit podcast, hosted by Maiju Aaltonen.
Traffic currently accounts for about a quarter of the EU’s greenhouse gas emissions, and progress in reducing these emissions has lagged behind other sectors. However, this is set to change with the EU’s Fit for 55 legislative package, which aims to cut transport emissions by 55% by 2030. Achieving this goal will require reductions in heavy road transport, maritime, and aviation sectors where direct electrification is not as feasible as it is for light road transport and rail.
Alternative solutions are needed. In the podcast, Nordic Ren-Gas CEO Saara Kujala and Fimpec’s Business Unit Director Jorma Paananen highlighted the role of hydrogen and its derivatives, such as e-methane, in achieving this goal.
“Hydrogen is sure to be a crucial option for transportation in the future. However, developing hydrogen engines and infrastructure will take time. Therefore, we need other solutions, and renewable gas is a clean alternative to replace fossil fuels,” Kujala noted.
She emphasized that renewable technologies and fuels are vital for emission reduction and that measures to decrease traffic volumes are also necessary.
Paananen underscored the importance of planning: “As someone with an infrastructure background, I see improving roads and streamlining traffic as ways to reduce carbon dioxide emissions. Similarly, good urban planning and improved logistics can contribute.”
Ren-Gas: pioneering new business
Ren-Gas plans to produce approximately 150,000 tons of renewable methane annually. Kujala described this as an entirely new type of business.
“In essence, we are turning electricity into fuel. This involves purchasing renewable electricity generated by Finnish wind farms and using it to electrolyze water into hydrogen. We collaborate with Finnish municipal energy companies in six locations. These partners can use the heat generated during the process for district heating, reducing fossil fuel usage. Additionally, we capture carbon dioxide from power plant flue gases and combine it in a methanation process to create methane gas, chemically equivalent to fossil natural gas but sourced from renewable Finnish wind energy.”
The technologies themselves, such as electrolyzers, are not new, Kujala explained. What is innovative and challenging is integrating these technologies into Ren-Gas’s plant concept.
“There are many choices and details to resolve. As this is the first time it’s being done, our team has gained vast expertise. There’s no wiser authority to turn to for answers. This groundbreaking work is, of course, carried out in collaboration with partners across the entire value chain, from energy companies to wind power producers and gas buyers,” she elaborated.
The selected concept has numerous strengths. The partnership model with energy companies ensures high production efficiency, existing infrastructure can be utilized, and there are ready applications for the end product.
“E-methane’s advantage is that it can be used in the same applications as natural gas, such as refueling gas trucks or, in liquefied form, ships. This increases the use of renewable fuels without requiring significant equipment modifications or investments. The existing gas pipeline network can also be used for transport,” Kujala evaluated.
Ren-Gas has also prepared for the eventual increase in direct hydrogen usage. With the advent of hydrogen-powered trucks and industries that utilize hydrogen directly, the infrastructure will be adaptable.
“Our capacity has been designed to allow direct hydrogen sales to industry. However, given the uncertainty in hydrogen economy development, our current concept is the right choice. It allows us to overcome bottlenecks, launch projects quickly, and contribute to concretizing the hydrogen economy.”
Regulation as a market enabler
While there are ample uses for e-methane, customer adoption requires regulatory support, as it cannot compete with fossil fuels on price alone. Kujala emphasized the importance of renewable fuel distribution mandates.
“When a specific percentage of renewable fuel is mandated and gradually increased, it opens markets for hydrogen-derived fuels like e-methane and supports the 55% reduction target for 2030. Another crucial regulation is the requirement to build hydrogen refueling stations every 200 kilometers along the TEN-T road network, including Finland’s Highway 4, by 2030. Significant strides are also being made in maritime transportation. In the summer of 2023, the EU adopted regulations requiring shipping companies to use renewable fuels and partially include them in the emissions trading system.”
“Renewable fuels cannot independently compete with fossil fuels. Their adoption requires commitment, concrete goals, and regulation,” Paananen summarized, adding that hydrogen might also find applications in rail transport.
“Electricity dominates as the main energy source, but hydrogen has been explored in countries like Germany, Italy, and Spain as a diesel locomotive alternative. It’s fascinating to see hydrogen being considered in this domain as well.”
Finland: an optimal location for e-methane production
Ren-Gas’s six-plant initiative is unique even on a European scale. According to Kujala, Finland is particularly well-suited for such projects.
“Key factors include low-cost green electricity and significant potential for new wind and solar power development, providing raw material for e-methane production. We also have a stable power grid, access to biogenic carbon dioxide, a stable society, and clean water, which is essential for the electrolyzer process.”
Saara Kujala ja Jorma Paananen were guests of Maiju Aaltonen (Hirvikallio) on Fimpec’s “Kumppanit” podcast.
Listen to episode 13 of the “Kumppanit” podcast: “In this way, traffic emissions can be reduced”. Please note, that the podcast is available only in Finnish.
All “Kumppanit” podcasts (in Finnish)
