Plug Doing Real Things: Kristinestad, Finland


In 2023, Plug announced a 1GW project to produce green hydrogen in Kristinestad, Finland. This project, using Plug’s electrolyzer products combined with Finland’s carbon dioxide-free energy, is focused on decarbonizing the production of direct reduced iron (DRI) in partner GravitHy’s planned factory. This will be raw material for fossil-free steel production.

March 25th, the project took another step forward. Plug’s Benjamin Haycraft, Edouard Oberthur and Aleksi Haverinen and Jose Noldin from GravitHy visited Kristinestad to present the project at a public hearing. The informational event was an opportunity for Plug and GravitHy to explain how the plant will look, the opportunities it will bring to the region and to answer citizens’ questions. Benjamin Haycraft and Jose Noldin explained that the project is at an early development stage and that they are currently running the pre-studies on logistics for the connection to the Karhusaari port as part of the feasibility investigations. They also are launching the Environmental Impact Assessment – a key milestone for the permitting process that will enable to move to the next phases of the project.

Benjamin Haycraft in Kristinestad

Plug and GravitHy’s green DRI project in Kristinestad could result in CO2 emission decrease of more than 4 million tonnes annually – about 10% of Finland’s total emissions – while creating 400 direct new jobs and 1,500 indirect jobs. The plant will process 3.3 million tonnes of iron ore annually that will be imported via the ports to produce 2 million tonnes of DRI iron that will be exported to Europe, generating traffic in the port of Karhusaari.

Green steel is crucial to reach the objective of the European Union to decarbonise the industry. There is an increasing interest in green steel in the industry. Switching to green steel has little impact on product prices. It represents, for instance, only a fraction of the final price of a regular car, which explains why we see major companies such as Volkswagen partnering up with steelmakers to source green steel.

This is what matching industrial development and climate solutions looks like.

Finland has the great advantage of combining a large supply of affordable carbon dioxide-free electricity and Fingrid’s reliable and well-developed infrastructure. Such a combination is difficult to find, which makes Finland and Kristinestad a key location in Plug’s development strategy in Europe.

The event was also an opportunity for Plug to underline that the involvement of local communities throughout the whole project development phase is crucial to its success. With a full house and great questions from the audience, the meeting was a positive start for co-operation with the local community. There is a strong interest in and high expectations for the project, which is perceived as important for strengthening the vitality of the whole area, both in Kristinestad and also in the neighbouring municipalities. As an illustration, the municipalities’ Economic Development Centre, Plug, and GravitHy will work with Vaasa University of Applied Sciences (VAMK) to ensure that there is a skilled workforce for the implementation of the project.



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