Finland backs green hydrogen as Fortum pauses nuclear expansion
Finnish utility Fortum has ruled out new investments in nuclear power in the near term, citing low electricity prices in the Nordic market and high construction costs.
The announcement came as Finland inaugurated its first industrial-scale green hydrogen plant, marking a shift in focus toward alternative energy technologies.
Fortum concluded a two-year study into the feasibility of building new nuclear reactors and determined that such investments are not commercially viable under current market conditions.
Markus Rauramo, CEO of Fortum,said:
New nuclear could provide new supply to the Nordics earliest in the second half of the 2030s, if market and regulatory conditions are right,
The company will instead focus on expanding renewable power generation, increasing storage capacity, and extending the life of existing nuclear facilities, including the Loviisa nuclear plant.
The company’s Vice President for New Nuclear, Laurent Leveugle, said a risk-sharing model would be required to make future nuclear investments possible.
Leveugle told Reuters,
We are not saying that the state has to pay for it, but that the risk must be shared with the different parties: technology providers, investors, utilities, and also the state,
Fortum is exploring pumped hydropower and considering new hydropower stations in the Nordics beginning from 2030. It also intends to meet increasing demand in the next decade with a combination of onshore wind and solar power.
According to Rauramo, power demand in the Nordic region could double by 2050 due to industrial decarbonisation and electrification.
While Fortum has paused new nuclear plans, Finland is pressing ahead with new green energy initiatives. On 26 March 2025, P2X Solutions inaugurated the country’s first industrial-scale green hydrogen production plant in Harjavalta. The event was attended by Alexander Stubb, President of the Republic of Finland.
Stubb said during his speech at the inauguration,
Finland has everything it takes to become a clean energy superpower,
The Harjavalta facility is the first of its kind in Finland and aims to provide hydrogen for industrial and transport sectors. The plant also includes a methanation facility, which will begin operations at a later stage. Synthetic methane produced from green hydrogen will contribute to decarbonising sectors where direct electrification is not feasible.
P2X Solutions is backed by Swiss energy company Alpiq, which acquired a majority stake in the Finnish firm in April 2024. Alpiq Executive Board member and P2X Solutions Chairman Amédée Murisier described the project as a strategic move to support the integration of renewable energy into the European energy system.
P2X Solutions CEO Herkko Plit called the Harjavalta plant a “historical achievement” and said the company plans to expand hydrogen production in Joensuu and Oulu. The Joensuu plant is expected to reach 40 MW in capacity, while the Oulu facility could scale up to 100 MW.
Plit, said:
Next, companies should take an active position and start driving the change for the better,
Finland’s hydrogen strategy is aligned with EU targets to reduce emissions from hard-to-abate sectors. The government expects the hydrogen economy to generate over 115,000 new jobs and account for up to 13% of GDP by the mid-2030s.
As Fortum turns to renewables and lifetime extensions for existing nuclear facilities, and P2X accelerates hydrogen development, Finland’s energy policy is shifting toward flexible and decentralised solutions.
The Nordic power market has experienced prolonged periods of low electricity prices, driven by increased renewable capacity and lower demand growth. Fortum has warned that these conditions are not sufficient to support capital-intensive projects like nuclear reactors without regulatory reforms or direct financial support.
Discussions are ongoing in Sweden about creating a risk-sharing framework for nuclear investments. Fortum has indicated it would support a similar model in Finland.
Meanwhile, the Loviisa nuclear plant, operated by Fortum, is undergoing life extension measures. Fortum has applied to continue operations at the site until at least 2050.
Rauramo said this strategy would help meet near-term power demand while the company evaluates longer-term options.
Finland’s approach to energy diversification comes amid broader European efforts to reduce reliance on fossil fuels and improve energy security. Green hydrogen and advanced storage systems are seen as essential components of this transition.
Fortum’s position reflects growing caution among European utilities over the costs and risks associated with new nuclear builds. The company has yet to release any cost estimates for new reactors, but industry analysts say capital requirements often exceed €10 billion per unit and construction timelines stretch over a decade.
By contrast, modular hydrogen projects like those developed by P2X Solutions involve lower upfront costs and shorter lead times. They also benefit from growing political and financial support across the EU.
P2X Solutions is planning to continue scaling its hydrogen operations through both public and private partnerships. Alpiq’s backing gives the company access to European infrastructure and financing channels.
In the coming years, Finland is expected to become a test case for the integration of green hydrogen into a modern industrial economy. The government has not ruled out support mechanisms for nuclear or hydrogen, but has said market viability will guide investment decisions.
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Finland backs green hydrogen as Fortum pauses nuclear expansion, source
