The Utilitas and UG Investments green hydrogen complete chain project received a positive financing decision

The Utilitas Energy Group and UG Investments (UGI) hydrogen project will receive five million euros from the Environmental Investment Centre and the Ministry of Economic Affairs and Communications to co-finance the construction of a green hydrogen complete chain. Green hydrogen will be introduced in public transport and the project must be completed by the end of November 2024.

The cooperation project between Utilitas and UGI proved successful in the pilot project of the Environmental Investment Centre for the introduction of green hydrogen in the public transport sector. With the support, Utilitas, together with its partner UGI, plans to build a green hydrogen production unit and supply infrastructure in Tallinn and acquire a vehicle fleet that consumes green hydrogen. The project, which will be implemented by the end of 2024, will reduce annual greenhouse gas emissions by 1,700 tonnes of CO₂ equivalent and the annual production of green hydrogen that will be used in public transport will exceed 36 tonnes.

For the production of hydrogen, Utilitas is planning a production complex near the Utilitas cogeneration plant, which will be supplied with electricity via a direct line. The project also includes the construction of two public hydrogen filling stations in Tallinn, one of which will be located in the hydrogen production complex. UGI will take care of the acquisition of the vehicle fleet, but it is planned to find a partner to operate the vehicles.

According to Priit Koit, Chairman of the Management Board of Utilitas, the advantages of the Utilitas project were high cost efficiency, the highest positive environmental impact, and the rate of hydrogen introduction. The hydrogen production complex to be built next to the Utilitas cogeneration plant will use 100% renewable electricity and enable the use of high-efficiency production facilities while keeping the price of hydrogen at the best possible level for all future consumers. Opportunities are also being sought to use the waste heat from the hydrogen production process in the district heating network, which in turn would increase the overall cycle efficiency.

‘We are happy to have the opportunity to implement the project in partnership with the state. We see hydrogen as an important link in the complete transition to renewable energy,’ said Priit Koit. ‘We see the great potential of hydrogen technology in public transport in general – for example, in the case of rail transport or city buses, but also in energy storage. The establishment of a production complex and the development of infrastructure create very good preconditions for the wider use of hydrogen.’

According to Valdur Laid, Chairman of the Management Board of UGI, passenger cars using hydrogen technology are developing rapidly, which is why the company decided to acquire the necessary vehicle fleet itself. The company intends to work with a suitable taxi operator to operate the vehicles.

‘We have started negotiations with Tulika Takso to operate the vehicle fleet. Hopefully, we will reach a result that satisfies the parties, which means that the taxi company with the longest history in Estonia will have the opportunity to be a pioneer in introducing innovative vehicles,’ said Laid.

According to Laid, the promotion of the hydrogen sector is one of the investment priorities of the company, ‘We aim to be a pioneer in the field of hydrogen.’

Stargate Hydrogen Solutions, a company providing green hydrogen solutions, is also participating in the project as a technical consultant.

Utilitas is the largest producer of renewable energy and district heating company in Estonia. The company supplies heating to 175,000 households in eight Estonian cities – Tallinn, Maardu, Keila, Rapla, Haapsalu, Kärdla, Jõgeva, and Valga – and provides district cooling in Tallinn. The group companies operate three biofuel cogeneration plants, 26 boiler houses, and nine solar power plants.

UG Investment is a holding company that invests mainly in sustainable companies with export potential in the energy and industrial sectors, as well as in infrastructure and utilities.