Business Finland, Finland’s innovation funding agency, has granted a clean transition tax credit of up to EUR 109,997,600 to Northern Green Fuels Oy for its investment project known as Project Hybrid, to be located in Paltamo, Kainuu.

Northern Green Fuels Oy’s Project Hybrid will be implemented between 1 January 2026 and 31 December 2028. The aim of the project is to promote a climate-neutral economy through solutions based on renewable energy, such as the utilization of renewable hydrogen and the production of fuels based on renewable hydrogen. Electricity generation is not included in the project.

Business Finland granted the tax credit under the Act on Tax Credits for Certain Large Investments Aiming at a Climate-Neutral Economy (148/2025). The aid constitutes state aid based on the European Commission–approved aid scheme SA.114934.

The responsible project director for Project Hybrid is Ari Heinonen.

Part of the national clean transition investment programme

Northern Green Fuels Oy’s project is part of a fixed-term support programme implemented by Business Finland, under which tax credits for large clean transition investments have been granted to a total of 37 companies. Business Finland made all funding decisions under the programme in December 2025.

A key focus of Prime Minister Petteri Orpo’s government’s industrial policy is accelerating solutions that promote climate neutrality in industry and energy production. The support programme implemented by Business Finland consists of two components: investment grants and tax credits.

The programme is driven by intensifying international competition for industrial investments. Its objective is to ensure that key investments aimed at a climate-neutral economy are realized in Finland.

The programme promotes significant industrial projects that reduce the use of fossil fuels, improve energy efficiency, and support low-carbon industrial production processes and the transition toward a climate-neutral economy.

According to Business Finland Director General Lassi Noponen, tax credits have a significant impact on investment decisions, particularly in renewable energy and fuel production and in the electrification of industry. “We are grateful for the tax credit decision we have received,” says Ari Heinonen of Northern Green Fuels Oy. “Like Director General Noponen, we believe that incentives of this kind significantly promote major investment decisions directed at Finland, and in our case at Kainuu,” Heinonen adds.

Further information

Ari Heinonen
Responsible Project Director
Northern Green Fuels Oy
ari.heinonen@saatoenergia.fi
+358 50 057 3217