Allianz to invest in Finnish green hydrogen and power-to-gas developer Ren-Gas; sector coupling
12 December 2022
Allianz Capital Partners, on behalf of Allianz insurance companies, has signed an agreement to acquire a minority stake in Ren-Gas Oy, a green hydrogen and power-to-gas project developer based in Finland. Allianz will provide funding of €25 million to Ren-Gas to support the company’s project portfolio towards execution. Allianz will become a minority shareholder in Ren-Gas with a pre-agreed framework to invest in the Ren-Gas portfolio of projects.
The main product of Ren-Gas’ plants is renewable synthetic methane, which is made from green hydrogen and captured carbon dioxide. Ren-Gas will produce green hydrogen using renewable energy from local wind farms for the electrolysis.
Via subsequent methanization the green hydrogen is then combined with captured biogenic CO2 from district heating plants utilizing mostly renewable fuels, while simultaneously excess process heat is provided back to the district heating network.
As synthetic renewable methane’s chemical composition is similar to biomethane or natural gas it can be used as fuel by heavy-duty trucks, ships and for other industrial purposes. Overall, the process is generating renewable methane from water, wind electricity and captured CO2.
Ren-Gas’ key strength lies in its approach to develop green power-to-gas plants in connection with existing power plants and district heating systems and thus effectively utilizing the value of sector coupling.
Ren-Gas has already established a strong position in the fast-developing green hydrogen market with five industrial size projects under development together with local Finnish energy utilities. This sector integration approach will help to contribute to stronger energy security, competitive renewable gas and heat prices, together with significant emission reductions in the heavy road transportation sector and in the heating sector.
We consider this a significant milestone in our commitment to invest in projects that help drive the energy transition. Ren-Gas is our second direct infrastructure investment in Finland and our first direct investment into green hydrogen underscoring Allianz’s effort to support the de-carbonization process through tangible infrastructure projects. We appreciate Ren-Gas’ innovative approach to develop green power-to-gas plants in connection with existing power plants and district heating systems and thus effectively utilizing the value of sector coupling.
—Michael Pfennig, Co-Head of Infrastructure at Allianz Capital Partners
A green hydrogen project without the usual BS
Posted by: dursun | 12 December 2022 at 04:08 PM
What is capacity and cost per ton?
Posted by: Nirmalkumar | 12 December 2022 at 06:47 PM