The national gas transmission system operators (TSOs) in Finland and Sweden, Gasgrid Finland and Nordion Energi respectively, have agreed to investigate the possibilities to develop a new hydrogen infrastructure and market in the Bothnian Bay region. The potential demand for hydrogen, primarily used for enabling the transition and expansion of industries in the region, is estimated to be 100 TWh.
There is a growing consensus, supported by the new EU policy framework, e.g., the Fit for 55 package and the Gas Directive, that hydrogen infrastructure planning needs to be developed jointly by electricity and gas TSOs and include cross border connections between neighbouring countries.
“Both Finland and Sweden have significant renewable energy resources and the Bothnian Bay region has unique prerequisites for the development of new, clean hydrogen industry. This development can accelerate our transformation to become globally leading clean hydrogen and carbon negative economies. This is a unique opportunity for both countries to create a hydrogen market around the Bothnian Bay region,” says Olli Sipilä, CEO of Gasgrid Finland.
The Bothnian Bay is a potential region for the development of the first cross-border integrated hydrogen infrastructure in the Nordics. Both companies have identified very active interest in hydrogen by customers and stakeholders there. European hydrogen supply and demand was analysed by the European Hydrogen Backbone initiative, consisting of gas-TSOs in 21 European countries. The analysis shows that there is significant potential for hydrogen supply in the Nordics.
“The region is in a phase of strong industrial development. Demand for energy is growing rapidly and hydrogen is crucial for decarbonising industries and meeting climate goals. We need to think and act in new ways, as well as work in new partnerships, to make investments in the large-scale infrastructure needed for this transition,” says Hans Kreisel, CEO of Nordion Energi.
In spring 2022, the companies are planning to analyse the potential of the region in more detail and to present a regional forecast on hydrogen and electricity demands for 2025-2045. The companies aim also to develop possible draft routing for the hydrogen transmission network as part of the future energy infrastructure in the region. During the investigation phase, Gasgrid Finland and Nordion Energi will have an active dialogue with stakeholders of the future value chain of hydrogen – producers, industries, and authorities in both countries.
Further information:
Sara Kärki, Head of Strategic Analysis & RDI at Gasgrid Finland, sara.karki@gasgrid.fi, tel. +358 40 158 1722
Saila Horttanainen, Director Communications at Nordion Energi, saila.horttanainen@nordionenergi.se, tel. +46 70 622 7606
Nordion Energi specialises in energy infrastructure and is driven by a clear ambition: to be part of driving the transition to 100% green energy. Nordion Energi is the TSO (Transmission System Operator) for the Swedish main gas grid and owns and operates the country’s biggest gas distribution network and also has electricity network operations. Nordion Energi ensures our customers such as industries, municipalities, CHP plants, households, filling stations and restaurants are always supplied with energy in a safe, sustainable way.
