The support will be provided to Norsk e-Fuel’s Finnish subsidiary Norsk e-Fuel Rauma Oy, which is developing a 100 million-litre green hydrogen-based e-fuel facility on Finland’s west coast.

Rauma will use renewable energy to produce green hydrogen, which will be synthesised with captured carbon dioxide into aviation e-fuels.

The support mechanism comes in the form of tax deductions over a period of up to 19 tax years once the project is operational to help reduce operating costs.

Norsk e-Fuel said the tax credit decision “significantly strengthened” the project’s bankability, and would make it more attractive for future offtakers and financial partners.

However, this mechanism begins a ticking clock for the developer. Under Business Finland’s investment terms, the facility must be completed and operational within 36 months of the grant decision.

A Norsk e-Fuels spokesperson told H2 View the firm was “working actively” to progress the Rauma project to align with the 36-month deadline, but was unable to confirm an official start of operations date.

The company says it is currently starting the planning and permitting processes for the project, after it secured exclusive access to 14 hectares of land in the Port of Rauma in October 2024.

Marie Larsen, Funding and Public Affairs Manager at Norsk e-Fuel, said Finland’s policy and funding framework handed projects like Rauma the predictability needed to move forward.

“That support is essential for companies like ours to bring industrial-scale solutions to market,” she stressed.

Rauma is the company’s most advanced Finnish e-fuel development, with two other projects planned for Imatra Municipality and the recently announced 100,000-tonne facility in Tornio.

The EU has introduced strong mandates on sustainable aviation fuels, with at least 2% of fuel supplied at EU airports required to be SAF from 2025, growing to 70% by 2050. There’s also a 1.2% 2030 sub-target for green hydrogen-based synthetic fuels, which could reach 35% by 2050.

Finland is increasingly seen as a hotspot for European green hydrogen and derivative production, thanks to its increasing policy support and access to low-cost renewables.