Allianz to Invest in Finnish Green Hydrogen and Power-to-Gas Developer Ren-Gas

Allianz Capital Partners, on behalf of Allianz insurance companies, has signed an agreement to acquire a minority stake in the Finnish project developer Ren-Gas. Ren-Gas is the leading Nordic green hydrogen and power-to-gas project developer based in Finland. The company was established in 2021 by a team with strong sector experience and execution track record, with the goal to develop a decentralized power-to-gas portfolio – first in Finland with the potential to be expanded wider in Europe. Allianz will provide funding of EUR 25 million to Ren-Gas to support the Company’s project portfolio towards execution and to accelerate the business of the Company. 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 methanation 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 with 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.

The company’s key strength lies in their 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.

Courtesy of Allianz.

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Sara Mathov is a feature editor contributing to Fugitive Emissions Journal, Stainless steel World Americas, and other related print & online media.