Finland has commenced industrial production of "green" hydrogen.

A number of European companies, including British oil giants BP, Spanish Repsol, and Norwegian aluminum and energy firm Norsk Hydro, have either canceled or suspended their hydrogen production projects due to rapidly increasing costs.

"We are among the first in Europe to initiate production at this scale," said Herkko Plit, CEO of P2X Solutions, in an interview with Reuters.

P2X, which has been majority-owned by the Swiss energy group Alpiq since last year, stated that its new plant in Hyrylä, Western Finland, has a capacity of 20 MW. The facility will later include a methanation unit.

The plant operates on renewable energy sourced from a wind farm, allowing the hydrogen produced here to be labeled as "green."

The facility received an investment grant of 26 million euros from the Finnish Ministry of Economic Affairs and Employment, as well as a loan of 10 million euros from the Finnish Climate Fund, Herkko Plit reported.

The company plans to construct two more similar facilities in Finland with capacities of 40 MW and 100 MW.

Plit mentioned that regulatory restrictions set to take effect for emissions in air and maritime transport, as well as in industrial production, will lead to increased demand over the coming years.