Koppö Energia granted investment tax credit for its Power-to-X project

Koppö Energia Oy has been granted an investment tax credit of up to EUR 116,5 million for its Power-to-X project in Kristiinankaupunki – and PwC Finland had the opportunity to support them throughout the application process.

Koppö Energia is developing a large‑scale facility that will produce renewable hydrogen and RFNBO‑compliant (renewable fuels of non-biological origin) e‑methanol using a 200 MW electrolyser, methanol synthesis and distillation technology, and CO₂ captured from a municipal waste‑to‑energy plant. Once operational, the plant is expected to produce around 145,000 tonnes of e‑methanol per year to help decarbonise maritime transport and industrial sectors.

The Finnish tax credit for large clean investments is designed for large (> EUR50m) industrial projects that accelerate the green transition. The credit allows eligible companies to deduct up to 20% of approved investment costs directly from their corporate income tax over a period of up to 20 years.

Our Tax and Legal Services, Consulting, and Valuation, Debt and Capital Advisory experts supported Koppö Energia in navigating this new regime and contributed to securing a positive decision for an investment tax credit of up to EUR 116,5 million, strengthening the project’s financial feasibility and competitiveness. Our support included assistance with the incentive application and related documentation, financial modelling, and tax advisory.

The Ministry of Finance is now preparing to continue the tax credit for large clean investments in line with EU rules until the end of 2027, with largely similar conditions and a focus on projects that reduce emissions and support net‑zero technologies including technologies that promote carbon dioxide capture and the production of clean hydrogen. The new application round is expected to open soon, giving companies another opportunity to apply for this support. The minimum investment amount would still be set at EUR 50 million. However, the minimum amounts for investment could be less in energy production and storage and industrial decarbonisation.

If your company is planning a large‑scale green investment in Finland and wants to understand how the extended tax credit could support your project, our team at PwC Finland is ready to help.