Green hydrogen producers and electrolyser manufacturers could all benefit from a €2.3bn ($2.4bn) Finnish tax credit scheme to clean up industrial applications following European Commission approval.
The scheme under Finland’s state aid rules will provide tax credits to renewable fuel producers, industrial end-users and clean technology manufacturers.
The first subsidy will support investments in renewable fuel production, as well as the storage of electricity and renewable fuels such as green hydrogen, biofuels, and more.
Tax credits will also be offered to industrial players looking to reduce their greenhouse gas (GHG) emissions by at least 40% and/or reduce energy consumption by at least 20%.
Electrolyser makers, alongside solar, wind, heat pump, battery and CCUS tech manufacturers, can claim the tax credit for new investments in production facilities. This will be extended to key components for those technologies.
The tax credits are available for only newly installed or “repowered” capacities and can be used for up to 20% of a project’s total cost. The Finnish Government’s original proposal suggested a €50m ($52.3m) cap.
“This scheme will help to address the increasing demand for renewable fuels and incentivise Finnish industries to use less polluting equipment, move away from fossil fuels and save energy,” said European Commissioner, Teresa Ribera.
“It will also accelerate the transition to a climate neutral economy through the support of key investments, while ensuring that any potential competition distortions are kept to the minimum.”
The new package of support comes in addition to a €400m ($418m) Finnish direct grant package approved in December 2024 to support industrial decarbonisation projects and the switch to green hydrogen and derivatives.
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