On May 8th, at the Ambassador's residence of the Kingdom of Norway, a Memorandum of Understanding (MoU) was signed between Northern Europe Energy Groupe AS (Northern) and Vindr Estonia. The MoU targets long-term renewable energy supply for a new green hydrogen production facility and potential data centre establishment in Estonia. This initiative is a key step toward in Estonia for some of Northern's[RS1] largest renewable industry projects that includes a hyperscale data centre and facilities for Power-to-X, with plans for a renewable energy facility in Pärnumaa, near the Latvian border.
The long-term agreement between the electricity producer and buyer for the delivery of green energy within a specified period and pricing mechanism will ensure a stable and predictable energy supply for the buyer, while allowing the producer to guarantee long-term investment returns in renewable energy projects. This also provides significant support for the development of renewable energy, strengthening Estonian energy independence, and helping businesses meet decarbonization goals.
Northern plans to develop the industry area to include a very large data centre establishment and an advanced Power-to-X (eSAF and green ammonia) production plant in Estonia. One of them in Urissaare, located in Häädemeeste municipality in Pärnumaa. The plans will involve investments of more than 1 billion EUR and create at least 100 new jobs.
Together with data centres partners, Northern will explore the opportunity to establish a hyper scale data centre in Estonia. Other plans for Power-to-X in Estonia by Northern include large scale green hydrogen from Saaremaa to be transported via the Baltic Sea Hydrogen Collector to Germany.
Minister of Energy and the Environment of Estonia, Andres Sutt, comments “Energy policy must deliver competitive, affordable end prices and a shrinking environmental footprint. This is not ideological thinking it is a genuine competitive advantage. Projects like the one planned in Häädemeeste show exactly how green hydrogen and renewable energy can serve both goals at once, strengthening Estonia's energy independence while attracting long-term industrial investment.”
"Power-to-X solutions, like eSAF and green ammonia, are not just energy carriers – they are critical for European energy security, for energy availability and the energy transition. Data centres are already critical facilities today that will become an even more significant part of the industries in the Nordic and Baltic. The global interest in renewable resources is growing, thereby opening opportunities for Estonia to play a significant role in the future economy that includes hydrogen and other Power-to-X for Europe and expanding data centre activity. Predictable regulations, stable governance, access to renewable resources, and the proximity to continental European markets, combined with the industrial strategy for green hydrogen, create an attractive environment for us," said Thor Magnus Rovik, CEO of Northern.
"Vindr is working hard on Estonia’s transition to clean, domestically produced electricity through its growing portfolio of wind energy projects. The company’s developments are expected to deliver reliable, certified renewable power while supporting regional economic growth and contributing to new jobs. By strengthening energy security and reducing reliance on imports, Vindr is also helping to lay the groundwork for emerging industries such as hydrogen production. The company’s efforts contribute to building a more competitive, resilient, and environmentally sustainable energy system in Estonia, positioning renewable energy as a key driver of long-term economic growth," emphasized Marko Viiding, CEO and co-founder of Vindr Baltic.
"Green hydrogen plays a pivotal role in the transformation to economic growth backed by renewable energy. Norway is proud to be a European leader in green hydrogen production, and projects like the collaboration between Northen and Vindr in Urissaare highlight the strong partnership between Estonia and Norway. This is a remarkable project for the cooperation for both countries with a lot of potential to drive innovation, sustainability, and economic growth across the region," outlined Marius Dirdal, the Norwegian Ambassador to Estonia.
About the Memorandum’s Parties
Northern Europe Energy Group AS (Northern) is a Nordic–Baltic energy company focused on large-scale renewable energy, green hydrogen, and integrated industry solutions. The company develops Power-to-X projects, hydrogen production, battery energy storage systems (BESS), data centres, and related infrastructure, with a strong emphasis on circular resource utilization and industrial circularity. The company has an active project portfolio across Finland and the Baltics, managing a substantial portfolio with over 4 GW grid capacity and strategically positioned to capitalize on the rapidly growing demand for green hydrogen and sustainable industrial infrastructure in Northern Europe. The Häädemeeste project in Pärnumaa is important for Northern and is an investment project of strategic regional importance.
Vindr is developing renewable energy projects in Norway, Sweden, Estonia and Latvia to contributing to energy security through advanced technology and responsible project development in the Nordic and Baltic regions. We work closely with local stakeholders throughout the development process and aim to create real value for the communities around us. Vindr Estonia is developing a portfolio of onshore wind energy projects with 1500 GWh combined potential yearly production.
