Finnish Power-to-X expertise at the forefront of the green transition

Power-to-X: Turning renewable energy into scalable fuels

The European Union (EU) is tightening its climate targets towards 2030, accelerating the transformation of the energy system. Demand for renewable fuels of non-biological origin, or RFNBOs, is growing rapidly as industry and transport prepare for new regulatory requirements. Finnish companies Valmet and Nordic Ren-Gas are well positioned to support this transition, developing scalable technologies that help bring Power-to-X solutions from concept to reality while strengthening Europe’s energy independence. 

The EU’s RED III Directive sets mandatory and annually increasing targets for RFNBOs. By 2030, 42% of hydrogen used in industry and 1% of transport fuels must come from renewable sources. These requirements are driving investment towards solutions that can deliver verifiable emissions reductions and integrate with existing infrastructure. In this context, e-methane is emerging as a key compliance solution: it is scalable, technologically mature and can be used with existing infrastructure. 

E-methane is produced by combining hydrogen generated from renewable electricity with captured biogenic CO₂. The resulting product can be fed directly into Europe’s existing gas grid without requiring new investments in transmission pipelines, storage or end-user equipment. For companies, this provides a fast and cost-effective way to reduce carbon dioxide emissions, meet RFNBO requirements and benefit from regulatory incentives. At the same time, it offers a competitive advantage in a market where demand is growing faster than supply. 

International recognition for Finnish system innovation 

Finnish Power-to-X expertise has gained significant international recognition. In May 2026, Valmet and Nordic Ren-Gas received the System Innovator of the Year award at the World Hydrogen Summit & Exhibition. The award recognized the companies’ joint work in advancing smart automation solutions for renewable hydrogen production. 

A key part of the collaboration is a full-scale digital twin and central control room simulator developed for Ren-Gas’ future green hydrogen and e-methane plants. The simulator combines real-time process models, energy market optimization, electricity market simulation and operator training in a single platform. It enables Ren-Gas to test and optimize operating strategies, prepare operators and plan maintenance before the plants are in operation. 

Process model validation was carried out using an Apros model developed by VTT, further strengthening the technical reliability of the simulation. 

“This award recognizes our joint work in advancing smart automation solutions for renewable hydrogen production and our contribution to a more sustainable energy future,” says Jyri Kaivosoja, Senior Product Manager at Valmet. 

Ren-Gas’ systematic development work 

Ren-Gas is building a green hydrogen and e-methane production network in Finland, with the ambition of producing 2.5 terawatt-hours of renewable fuel for heavy-duty transport. This is equivalent to replacing approximately 250 million liters of fossil diesel. 

For several years, the company has modeled the hydrogen value chain and market behavior using its NRG-SIMO platform. This long-term development work provides a clear view of how power-to-gas plants can operate flexibly and profitably in changing market conditions, creating a foundation for intelligent control of the entire production fleet. 

Intelligent control is at the core of Power-to-X solutions 

Valmet’s experience in energy markets and grid-connected control technology supports Ren-Gas’ technical development. Ren-Gas’ central control room simulator acts as a digital twin of its future e-methane plants, built around Valmet DNAe automation technology. The simulation environment helps ensure that the operating model reflects real-world conditions from the outset and that the plants can participate in energy markets flexibly, cost-effectively and with a high degree of autonomy. 

The simulator combines process modeling with advanced control and automation solutions for process control, optimization and data management. 

“This is not just about automating an individual plant. It is about intelligent fleet-wide optimization, autonomous production planning and strategic electricity trading as part of multi-market optimization and sector integration,” says Aleksi Sipilä, Automation Manager at Nordic Ren-Gas. 

Energy management creates a competitive advantage in all conditions 

Valmet’s energy management consultancy was a key part of the simulator’s development. Rather than treating energy management as an individual feature, the project integrated it into the plant’s overall intelligent control architecture. 

The system monitors wind and solar power generation in real time, automatically adjusts gas production based on real time conditions and forecasts, and takes advantage of periods of low-cost electricity in the market. This enables renewable energy to be used efficiently while keeping production costs under control. 

From Ren-Gas’ perspective, energy management is a key competitive factor. It enables production to be optimized continuously, regardless of weather conditions. The project demonstrated how smart automation and the energy transition can work hand in hand, and how digital capabilities can transform the way Ren-Gas manages its future production portfolio. 

“By collecting data from the energy-intensive electrolyzer and combining it with electricity price forecasts, our system can calculate the most economically viable time to schedule maintenance activities,” says Jyri Kaivosoja, Senior Product Manager at Valmet. 

The simulator is integrated with several third-party systems, including the maintenance management system, ERP systems and the systems of energy market partner Volue. Electricity price forecasts are received from the energy market, supporting production planning and operational decisions. 

“Energy management enables us to make effective use of renewable energy sources while also taking advantage of low-cost electricity available on the market,” says Antti Alahäivälä, Development Manager at Ren-Gas. 

Simulator helps demonstrate feasibility and reduce investment risk 

The digital twin and simulator provide a virtual environment for demonstrating the technical feasibility of the project and reducing risks during the investment phase. For a project involving several e-methane plants, investors need confidence that the technology will operate reliably and that the planned operating model can deliver the expected performance. 

The simulator helps reduce technical risk by enabling processes and system interfaces to be tested before physical construction. It can also demonstrate how the Valmet DNAe system and different equipment platforms communicate with each other. 

In addition, the simulator provides a realistic environment for operator training and practicing operating strategies before commissioning. This helps improve operational readiness and can accelerate commissioning because the automation solutions and control strategies have already been tested in the simulation environment. 

Reducing risks during the construction and commissioning phases is particularly important for investors, as it can help avoid additional financing costs and revenue losses caused by delays. 

Expertise opens doors to new markets 

Ren-Gas has recently entered into several significant partnerships that strengthen its position in the European renewable fuels market. Sunfire will supply a 50-megawatt electrolyzer for the company’s Tampere e-methane plant. A long-term gas supply agreement with Avanca Energy AG, worth approximately one billion euros, is the largest commercial renewable e-methane supply agreement in Europe. 

The companies are building a fully European and rapidly scalable value chain. Green e-methane produced in Finland can be transported through existing gas infrastructure to serve heavy-duty transport in Central Europe, without requiring changes to vehicles or refueling infrastructure. 

This creates an opportunity for gas-powered trucks in Europe to transport goods with lower emissions while reducing dependence on fossil fuels imported from outside Europe. 

Finnish expertise supports Europe’s competitiveness and energy independence 

Sustainable development and energy independence are increasingly linked to long-term competitiveness. Valmet and Ren-Gas are demonstrating how technology can help make low-emission RFNBO solutions scalable, commercially viable and ready for deployment. 

Together, the companies are showing how Finnish Power-to-X expertise can contribute not only to meeting regulatory requirements, but also to shaping the future of Europe’s energy system and strengthening energy independence. 

Petri Köykkä, Director, Plant Performance Solutions at Valmet, emphasizes that Valmet’s strength is based on long-term collaboration with customers and a practical understanding of their operational needs: 

“Power-to-X plants are not competing on technology alone, but on their ability to operate efficiently in changing energy markets.  This collaboration has created a strong foundation of expertise that enables us to support the adoption and commercialization of new technologies and bring Finnish solutions to international markets,” Köykkä says. 

Both companies are contributing to a cleaner, more competitive and more energy-independent Europe.