The tax breaks will be provided to the company’s Finnish subsidiary for its Ranua facility, which is designed to produce 110,000 tonnes of green hydrogen-based e-methanol.

According to ETFuels, the project, which is currently in early engineering stages, will use 300MW of renewable wind energy alongside battery storage facilities.

Awarded under Business Finland’s Clean Transition program, the tax deductions will come over a period of up to 19 tax years once the project is operational, helping to reduce operating costs.

The Ranua project has been in development in collaboration with Finnish energy firm Neova.

It is part of the company’s six-strong portfolio featuring four US e-methanol plants and one UK e-SAF plant.

Lara Naqushbandi, CEO of ETFuels, hailed the country as a prime location for e-fuel production.

“Finland was the first country we selected, based on its best-in-class production fundamentals – including strong renewable resources, access to biogenic CO2, regulatory clarity and long-term political commitment to clean industry”, she continued.

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 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.