ETFuels Finland on Monday (23 February) said it has been awarded an investment tax credit of up to EUR 118.6 million (USD 139.9 million) by Business Finland for its Ranua Näätäaapa e-methanol project. 

The Ranua project will produce renewable hydrogen-based e-methanol using Finland’s abundant renewable power resources. 

The facility will supply European maritime and industrial markets facing tightening decarbonisation mandates, while contributing to domestic energy security and industrial value creation.

“The tax credit, capped at 20% of eligible investment costs, materially strengthens the project’s competitiveness and bankability while accelerating final development milestones,” the company said. 

The award ranks among the largest granted under Finland’s Tax Credit for Large Clean Transition Investments programme and places the project in  the top quartile of recipients.  

The investment credit, representing up to 20% of eligible capital expenditure, materially strengthens project economics and reduces effective capital intensity. 

The Ranua project will produce 110 ktpa of renewable hydrogen-based e-methanol using Finland’s abundant renewable electricity resources and biogenic CO2 supply.

Finland has emerged as one of Europe’s most attractive jurisdictions for industrial-scale hydrogen and e-fuels development, combining abundant renewable and biogenic CO2 resources, streamlined permitting, and stable policy frameworks. The government has committed to capturing at least 10% of EU clean hydrogen production and consumption.

“When we began developing e-fuels projects in Europe, 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,” said Lara Naqushbandi, CEO of ETFuels.

“We are delighted to receive this endorsement from the Finnish government. Ranking among the largest awards under the programme reflects the scale, maturity and strategic importance of the Ranua project and reinforces Finland’s position as a leading hub for industrial-scale clean fuels.  The award significantly enhances the project’s competitiveness and bankability, strengthens capital efficiency and improves financing visibility as we move into the next phase of development.”

Business Finland announced tax credits for 37 companies across renewable energy production, energy storage and manufacturing categories. Of the 15 projects awarded under renewable energy production, five relate to e-fuels, underscoring the select and advanced nature of ETFuels’ project. The broader programme reflects strong industrial momentum, with 23 additional projects approved across energy storage and manufacturing.

From the outset, ETFuels has developed the Ranua project in close partnership with Neova Oy, the Finnish state-owned land and energy company managing approximately 60,000 hectares across Finland. ETFuels has worked alongside Neova since the early stages of development, leveraging its in-house renewable energy expertise, permitting experience, and strong regional presence.

ETFuels and Neova have also engaged closely with key stakeholders in Ranua, including landowners, the municipal council and officials, and representatives of the reindeer herding community, ensuring that local perspectives are integrated into project planning and that the development delivers long-term regional benefits.

The award marked a major milestone in ETFuels’ Nordic foundation and reinforces Finland’s position as a leading European hub for renewable hydrogen and e-fuels production. 

It also strengthens ETFuels’ broader multi-jurisdiction platform, which includes large-scale e-fuels projects in the United States and the United Kingdom. Across its portfolio, the company focuses on jurisdictions offering durable policy support, world-class renewable resources and strong industrial demand for green fuels.

Photo credit: Joakim Honkasalo on Unsplash
Published: 25 February, 2026