My Oulu: The green transition drives Oulu forward – “We have potential to become the leading hydrogen hub in Nordic region”

Oulu’s industrial journey has evolved from tar to technology – but what does the future hold? Industry still holds a strong position in Oulu, with recent investments totaling billions of euros in mechanical wood processing and pulp and board production alone. In total, industry employs over 10,000 residents, but the city is seeking to generate even more jobs in this sector. These could emerge from the green transition, for instance, through hydrogen industry initiatives now taking their first steps toward commercial mass production.

Over the past year, the City of Oulu has announced major hydrogen investment plans. Oulun Energia is developing a project in the Laanila industrial area, and French company Verso Energy has plans for Oritkari. In early April, a zoning reservation was announced for three hydrogen production and processing facilities in Pyyryväinen. These investments have been attracted through cooperation between BusinessOulu and the city’s urban environment services, in line with Oulu’s city strategy.

“Our city strategy sets out clear goals: Oulu aims to be Finland’s most business-friendly growth center, with a target of 2,000 net new jobs per year. To achieve this, we need the outlines of low-emission factories on the horizon—companies ready to establish themselves in Oulu and invest in a cleaner industrial future”, says Juha Ala-Mursula, Director of Business Oulu.

“Competition is tough across many industries, but Oulu has real potential to develop into the leading hydrogen hub in the Nordic countries”, he adds.

“Oulu’s city strategy aims for carbon neutrality by 2035. That includes developing industrial areas for the green transition. For example, zoning is being updated in the Oritkari–Vihreäsaari area to create industrial plots and the infrastructure needed for green projects”, says Marko Kilpeläinen, Director of Urban Environment.

“The city creates the conditions for business investment, and we’ve succeeded in doing so—as shown by our cooperation agreement with Verso Energy and zoning reservations in Pyyryväinen. Interest in Oulu continues to grow,” Kilpeläinen adds.

Finland aims to be a green hydrogen superpower

Currently, the only operational green hydrogen plant in Finland is in Harjavalta, built by P2X Solutions Oy, which is also involved in Oulun Energia’s project in Laanila. According to the Finnish Hydrogen Cluster, there are 50 hydrogen projects underway at various stages across the country. However, realizing these projects requires billions in investment in production facilities and infrastructure, such as gas pipelines and power grids. Some promising projects have already been canceled, most recently when eTehdas withdrew from a billion-euro project planned for Simo. So, is there a risk that the hydrogen economy might turn from a financial opportunity into a burden for Oulu’s taxpayers?

“There are always risks with new industries, but Oulu is a highly attractive location for hydrogen economy actors. If one player pulls out, others will step in. Our strengths include a diverse business ecosystem, skilled workforce availability, low-cost electricity and a strong grid, excess heat for district heating, proven testing environments in other sectors, access to bio-based CO₂, and potential for more wind and solar energy,” Ala-Mursula lists.

Oulu’s credentials are indeed strong, with global expertise in areas such as 6G and health technology. To support the hydrogen sector’s training needs, a proactive approach has been taken: H2Koulu, a program covering all levels of education from the University of Oulu, Oulu University of Applied Sciences, and the OSAO vocational training consortium, is preparing skilled professionals for the field.

“We don’t just want to produce hydrogen in Oulu—we’re looking for players who aim to refine it into synthetic fuels like e-SAF, which already has existing markets,” Ala-Mursula says.

Starting in 2025, EU regulations require that at least 2% of aviation fuel at major European airports must be renewable SAF (Sustainable Aviation Fuel), increasing to 70% by 2050. According to the Finnish Hydrogen Cluster, the hydrogen economy presents significant growth opportunities for Finland and Oulu. By the mid-2030s, hydrogen could create over 115,000 new jobs and account for up to 13% of Finland’s GDP. It’s no wonder Oulu is aiming for a leading position as a hydrogen hub.

Environmental impacts will be assessed

While the city welcomes new industrial investments and the resulting jobs and property tax revenue, much work remains before implementation or lease agreements are signed. Environmental impacts of the planned facilities must be assessed before any final investment decisions. So far, only Oulun Energia’s Laanila project has reached the feasibility study stage, which includes launching an environmental impact assessment.

“In addition to job creation, the city is committed to halting biodiversity loss and enhancing nature. Green transition industries and their required infrastructure will impact the environment. Hydrogen plants need pipelines, transmission lines, and functioning transport connections. These impacts will be carefully assessed and considered in facility planning to achieve the best possible outcome for industry, residents, and nature,” Kilpeläinen emphasizes.

“We’re also continually evaluating the potential economic impacts of investments on the city’s finances,” he adds.

Oulu’s green industrial zones are also being zoned for technologies beyond hydrogen.

“Other industrial actors not involved in hydrogen production or processing are coming to Pyyryväinen. We’re not putting all our eggs in one basket,” Ala-Mursula notes.

Is hydrogen the answer?

Building a hydrogen plant and the changes it brings can raise concerns about environmental and landscape impacts, but on a larger scale, hydrogen technology could help solve global problems.

In a 2021 international survey, over 60% of 10,000 young people reported experiencing climate anxiety. In Finland, a Sitra survey showed that 4–10% of respondents had felt severe climate-related anxiety. This environmental concern is real, driven by both threats and uncertainty about the future. That’s why concrete solutions—like clean hydrogen and its synthetic derivatives—are meaningful.

Oulu’s hydrogen future is not just about fulfilling a city strategy. It could be part of a broader solution for decarbonizing aviation, road transport, and heavy industry.

“Synthetic fuels offer a sustainable alternative to fossil fuels. Oulu has always been good at coming up with solutions, so we should definitely be part of the green transition,” Ala-Mursula concludes.