Backed and initiated by InnoEnergy, one of Europe’s leading cleantech accelerators, VolagHy is building the foundations of a scalable, competitive synthetic aviation fuel (eSAF) industry in Europe. By leveraging a pan-European ecosystem of industrial partners, financial institutions, policymakers, and academic networks, VolagHy aims to industrialize eSAF production and replicate its model across the continent.

With its first flagship plant underway in Kuopio, Finland, the company plans to deploy five eSAF facilities across the Nordics by 2040, setting a blueprint for the large-scale rollout of sustainable aviation fuels in Europe.

A €150M tax credit to accelerate deployment

Business Finland has awarded VolagHy’s Kuopio project a €150 million tax credit, corresponding to 20% of total eligible project costs. The incentive will be generated over a period of 10 to 20 years, depending on the project’s development.

This support strengthens the project’s financial profile while reinforcing its local anchoring in Finland, enabling long-term industrial and community benefits.

A strong endorsement from Finland’s innovation ecosystem

“Having worked with the project team from the very start, we expect the tax credit award will support project to progress into implementation. Finland welcomes clean, sustainable business, and the Innoenergy project with its local partners showcases Finland’s strength in the hydrogen economy. The project is set to create high-value local jobs and strengthen Finnish innovation ecosystems.”
Markku Kivistö, Head of Cleantech, Invest In, Business Finland

Strengthening regional value creation through industrial partnerships

A defining feature of the Kuopio project is its integration of biogenic CO₂ potentially sourced from Mondi’s nearby pulp and paper mill. “Mondi is committed to playing its part in reducing greenhouse gas (GHG) emissions, accelerating the transition to renewable energy sources and working with value chain partners. VolagHy’s approach supports emission reduction objectives, and we look forward to exploring these opportunities together”
Vesa Simola, Managing Director, Mondi Kuopio

“This project is a testament to the attractiveness of the Kuopio region, and seeing it develop over the last years has been a pleasure. We pledge our continued support and thank VolagHy for the excellent collaboration so far.” Jukka Pitkänen, Business Director, City of Kuopio

Project details

Our flagship project in Kuopio, Finland, will produce 50,000 tons of eSAF annually, powered by green electricity. There are plans to potentially supply the biogenic CO₂ from Mondi’s local pulp and paper mill. Combining proven industrial expertise with innovative partnerships, VolagHy delivers scalable, verifiable, and cost-effective sustainable fuels while creating tangible environmental and community benefits

“We are thankful for the award of this grant by Business Finland, which has been a strong supporter of the project for several years. We look forward to future developments together with our local partners and intend on making Finland a focal point of e-fuels production.”
 Diego Pavia, CEO, InnoEnergy

The project’s integration with local energy infrastructure creates additional value for the region:

“The waste heat generated by VolagHy’s process is an interesting low-cost resource for our district heating network in the region. By utilizing this resource, we gain additional flexibility in our network while lowering the environmental impact of our operations.”
 Esa Lindholm, CEO, Kuopion Energia

“This development is a much needed and positive boost for the Savo region, supporting its growth and vitality. It will also enable the further expansion of our network. Securing a cost-efficient grid connection is crucial for these large-scale projects, and I am very pleased with the excellent collaboration we have had with VolagHy over the past two years.”
Juha Räsänen, CEO, Savon Voima