Feasibility of Using EPC vs EPCM to Deliver Power-to-X Projects in Finland
Aly, Mohamed (2026)
2026
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202603174484
https://urn.fi/URN:NBN:fi:amk-202603174484
Tiivistelmä
The purpose of this thesis was to evaluate the feasibility of using Engineering, Procurement and Construction (EPC) and Engineering, Procurement and Construction Management (EPCM) delivery models for the development of Power-to-X (PtX) projects, with a particular focus on the European and Finnish context. The study aimed to support project developers, investors, and industry stakeholders involved in early-stage PtX project planning by improving understanding of how delivery model selection influences investment readiness, risk allocation, and project performance prior to final investment decision (FID).
The development task of the research was to analyse how different contracting approaches affect investment activation, bankability, cost and schedule certainty, flexibility, and organisational requirements in PtX projects. The theoretical framework consisted of literature on EPC and EPCM delivery models, project delivery in large energy and infrastructure projects, and the technological and market characteristics of the PtX sector, including known barriers to investment and implementation.
The study applied a qualitative research approach combining literature analysis and semi-structured expert interviews with project developers, contractors, consultants, and industry professionals with experience in energy and infrastructure projects. The researcher used thematic analysis to examine collected data and find recurring patterns which showed how organizations allocated risks and their level of financing readiness and their flexible operations and their total organizational capacity. The results indicate that delivery model selection plays a significant role in investment activation in PtX projects. Investors and lenders showed a preference for EPC contracts because these contracts provided single-point responsibility and fixed-price structures and detailed risk transfer, which increased their perception of bankability. However, EPCM approaches were found to provide greater flexibility, transparency, and technological adaptability, which are important in early-stage and first-of-a-kind PtX projects. The findings also highlight that organisational capability of the project owner is a critical factor influencing the suitability of EPCM arrangements.
The study concludes that EPC and EPCM should not be viewed as mutually exclusive alternatives but rather as complementary tools that may be applied at different project stages. Hybrid or phased approaches, combining EPCM during early development with EPC elements for risk-critical components before FID, may offer the most effective strategy in emerging PtX markets. The research provides practical recommendations for project developers and investors regarding delivery model selection based on project maturity, risk tolerance, and organisational capability.
Keywords: Power-to-X, EPC, EPCM, Project delivery models, Risk allocation, Project financing, Project Management, Green Hydrogen
The development task of the research was to analyse how different contracting approaches affect investment activation, bankability, cost and schedule certainty, flexibility, and organisational requirements in PtX projects. The theoretical framework consisted of literature on EPC and EPCM delivery models, project delivery in large energy and infrastructure projects, and the technological and market characteristics of the PtX sector, including known barriers to investment and implementation.
The study applied a qualitative research approach combining literature analysis and semi-structured expert interviews with project developers, contractors, consultants, and industry professionals with experience in energy and infrastructure projects. The researcher used thematic analysis to examine collected data and find recurring patterns which showed how organizations allocated risks and their level of financing readiness and their flexible operations and their total organizational capacity. The results indicate that delivery model selection plays a significant role in investment activation in PtX projects. Investors and lenders showed a preference for EPC contracts because these contracts provided single-point responsibility and fixed-price structures and detailed risk transfer, which increased their perception of bankability. However, EPCM approaches were found to provide greater flexibility, transparency, and technological adaptability, which are important in early-stage and first-of-a-kind PtX projects. The findings also highlight that organisational capability of the project owner is a critical factor influencing the suitability of EPCM arrangements.
The study concludes that EPC and EPCM should not be viewed as mutually exclusive alternatives but rather as complementary tools that may be applied at different project stages. Hybrid or phased approaches, combining EPCM during early development with EPC elements for risk-critical components before FID, may offer the most effective strategy in emerging PtX markets. The research provides practical recommendations for project developers and investors regarding delivery model selection based on project maturity, risk tolerance, and organisational capability.
Keywords: Power-to-X, EPC, EPCM, Project delivery models, Risk allocation, Project financing, Project Management, Green Hydrogen