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Carbon steel is suitable for hydrogen transmission pipelines, considering the boundary conditions

A key concern in construction of the hydrogen infrastructure is pipeline durability. Hydrogen is a small molecule gas and is known to cause embrittlement in materials – but can hydrogen also embrittle the carbon steel pipelines in which there are plans to transport it?

Pessimistic scenarios have already begun to paint a picture of the need to develop completely new steel grades for hydrogen pipelines or the project won’t work. Expensive steel development could slow down the creation of a hydrogen infrastructure in Finland – and cause costs to skyrocket.

Marko Ikävalko, Head of Operations and Maintenance at Gasgrid, says that there is experience from around the world of hydrogen transmission in steel pipelines – and hydrogen embrittlement has not been found to be a problem if choice of the pipeline material takes into account the properties of hydrogen and the operating conditions.

“Factors to be taken into account in the transportation of hydrogen include the maximum pressure used in transmission, pressure fluctuations and the flow rate,” Ikävalko notes. The existing natural gas transmission pipeline could also be used to transport hydrogen to some extent with certain limitations/restrictions.

Recent results from the Centre for Advanced Steels Research at the University of Oulu confirm information from the field: modern carbon steel pipes are suitable for hydrogen usage.

Effect of hydrogen on materials depends on many factors

Nevertheless, care must be taken with hydrogen since how it affects materials depends on many things – in the case of steels, in addition to pressure, factors such as microstructure, grain size, alloying elements and operation temperature affect. The durability of hydrogen pipelines and hydrogen tanks in cold Nordic conditions is naturally one research topic.

Hanna Kinnunen, Development Manager RDI & technology at Gasgrid, confirms that understanding the phenomena caused by hydrogen in materials, such as the effects on the mechanical properties and fracture toughness of steel, is essential in the hydrogen development project. There is already much information available which has been channelled into international standards, the most comprehensive of which currently is the US standard ASME B31.12.

“Updated in 2023, the regulations and recommendations in the ASME B31.12 standard are based among other things on hydrogen embrittlement and how it affects materials,” Kinnunen says.

“ASME B31.12 is an important standard also because it addresses and guides both design and operation,” Marko Ikävalko adds.

Steel grade for the hydrogen infrastructure still being studied

Gasgrid is yet to determine the most appropriate steel grade for the hydrogen infrastructure.

“This has not yet been decided. We will study the matter thoroughly before making the actual decision,” Ikävalko says. Once the steel grade has been chosen, the project will move forward by one important step.

“The choice of material will affect operational use throughout the entire lifecycle,” Ikävalko points out. Factors such as the hydrogen transmission capacity and the properties of alternative steel grades in different operating conditions must be considered when selecting the optimal pipeline material. The design basis is safe use throughout the lifecycle.

“In this respect, we are evaluating the optimal steel grade, which doesn’t differ to what we do in Gasgrid’s conventional infrastructure construction,” Ikävalo says, adding that a safety-driven lifecycle approach is the key factor in each phase of the project.

Uniform, welded pipeline does not leak

Common sense says that no matter how robust a hydrogen pipeline is, the biggest question marks are the joints and welding seams: will they hold in all possible conditions? Ikävalko points out that hydrogen is a well-known gas from the process industry, where there is a lot of user experience and applicable solutions available.

“All pipeline joints used will be suitable for use with hydrogen,” he says.

Gasgrid’s policy is that an integral, welded pipeline does not leak.
“The basis is that the pipeline is so well constructed that there are no leaks. Supervision and monitoring will then ensure that everything goes according to plan,” Ikävalko says.

“At the same time, Gasgrid continuously uses the best available knowledge and research results in the field in its own design work for the infrastructure projects,” Hanna Kinnunen adds.

“The use of new research in infrastructure design is important for us,” Kinnunen says.

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Research project establishes safe hydrogen transportation infrastructure in Nordic countries

  • The MatHias project (Material and Structural Integrity Assessment for Safe Nordic Hydrogen Transportation Infrastructure) is part of the Nordic Hydrogen Valleys programme. The research project seeks to entrench a safe hydrogen transportation infrastructure in the Nordic countries. The MatHias project is being coordinated by the Norwegian research organisation SINTEF. Besides Gasgrid, other participants from Finland are VTT Technical Research Centre of Finland, the University of Oulu and SSAB.
  • The MatHias project started in 2023 and is studying in particular the durability and integrity of steels for hydrogen pipelines and structures. Hydrogen can cause steel embrittlement, which increases the risk of pipeline fracture, especially in cold temperatures in the Nordics.
  • “The MatHias project is an important project from the Nordic perspective, and there is great interest in its findings and research results,” says Hanna Kinnunen at Gasgrid. “The project evaluates and compares the properties of various pipeline steels, developing methodologies to assess the pipeline lifetime and choice of appropriate steel grades. MatHias is just one example of ambitious research being conducted in the field of hydrogen,” Kinnunen adds. Investments in RDI are strong and increasing all the time.

 

Read more:

ABC of hydrogen safety

Hydrogen valley a regional anchor for the hydrogen economy

ABC of hydrogen safety

The hydrogen infrastructure will expand in Finland over the next few years. Safety is an important factor in the construction and operation of the hydrogen transmission pipeline Gasgrid points out.  

Hydrogen has long been used in industry, says Aki Huomo, Head of Process Safety at Gasgrid.

“Hydrogen transmission is not something completely new. Besides which, our long experience with natural gas also helps us to build and operate hydrogen transmission pipelines safely. Hydrogen is, of course, a different gas than natural gas. However, with proper foresight and safety management, hydrogen is just as safe to transport and use as natural gas,” Huomo thinks.

Nevertheless, the properties of hydrogen differ from those of natural gas and hydrogen requires special attention in the event of any leaks.

Materials and equipment are subject to a whole host of requirements when hydrogen flows through pipelines. “The strength of materials, the risk of hydrogen embrittlement and the permeability of hydrogen are some of the things that need to be considered,” Huomo lists.

Safety is the starting point

Hydrogen safety at Gasgrid is based on identifying the risks, potential damage and accident scenarios – and on understanding their implications.

“Risks are managed through planning and forecasting and, of course, through action where required. For example, attention has been paid from the outset to technical solutions and adequate protection zones.”

Robust pipes

“Underground transmission pipes are made of sturdy carbon steel with strong walls. “A welded, fully-sealed structure ensures no leaks,” Huomo says.

The same type of pipes are used on the natural gas side and there have been only a few incidents of pipe damage in Finland over the past 50 years.

Huomo knows that even though excavators pose the greatest risk to pipelines, an excavator bucket with claws causes nothing more than scratches to the side of a pipe.

“The design and construction methods of transmission pipelines have been tried and tested in industry over a long period of time. They are extremely durable,” Huomo adds.

Pipeline safety also includes preventive maintenance, which includes internal inspections of the pipes to ensure that everything is as it should be.

Route planning is part of safety

The plan is that the Finnish hydrogen infrastructure will comprise more than 1,500 km of transmission pipelines. For safety reasons alone, the pipeline routes will avoid population centres and buildings in general.

“Southern Finland, for example, is quite densely populated, but the pipeline routes will be as safe and functional as possible,” Huomo confirms.

“Existing chemicals legislation already requires that pipelines must not pose a risk to the public,” he adds.

Familiar infra

Long experience of natural gas pipelines helps in planning the hydrogen infrastucture. Huomo points out that besides the pipelines themselves, there are many other similar elements, including pumping stations, valve stations, production plants, power and industrial installations along a hydrogen transmission pipeline, just as along a natural gas transmission pipeline.

“In addition, pressure levels and construction principles, for example, are in a similar category.

The location of the transmission pipelines will be visibly marked at the ground level and covered with a thick layer of soil. “Authorisation is required for all construction and working in the vicinity of the pipeline,” Huomo says.

Details related to pipeline construction, such as intersections and, for example, road underpasses, are planned as special cases.

Specific legislation on the way

Unlike natural gas, there is currently no specific legislation for hydrogen transmission pipelines. According to Huomo, this means that, for the time being, natural gas legislation will be relied on, and technical solutions will be borrowed from the natural gas side.

Hydrogen standards already exist in Europe and elsewhere in the world, but some of them also need to be updated.

“Harmonised legislation and standardisation is on the way, and will take the sector far forward,” Huomo says. This will help to harmonise practices, which is what has happened in the natural gas system in the past. It will also help equipment suppliers and other operators to have rules that are as clear and consistent as possible.

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Hydrogen facts

– A non-toxic, odourless and colourless gas that is lighter than air

– Hydrogen is 14 times lighter than air and 6 times lighter than natural gas

– High-pressure leaks are diverted in the direction of the leak

– Hydrogen molecules are smaller than natural gas ones

– Hydrogen has a higher combustion rate at high concentrations than natural gas; consider leakage situations and safety distances

– Large-scale hydrogen transmission, production and use is new, as are the technologies used

– The hydrogen transmission infrastructure requires high-pressure underground pipelines to transport hydrogen over long distances

– A lower-pressure hydrogen distribution infrastucture can be built, for example at a regional level or in the vicinity of industrial plants

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Read more:

Finns believe in the potential of hydrogen – knowledge of hydrogen yet limited

Updated national hydrogen infrastructure route plan announced

 

Text: Sami Anteroinen

Regional developer paves the way for the hydrogen economy

The Nivala-Haapajärvi region has worked determinedly to promote the hydrogen economy and hydrogen infrastructure, and the results can be seen. The first hydrogen production projects are at the permitting stage.

The hydrogen economy and development of the hydrogen infrastructure are seen as a major opportunity for the region, and are being driven by regional business development organisation NIHAK.

“Our role is to pave the way for new investment. We reach good outcomes by promoting dialogue and providing up-to-date information to support decision-making,” says NIHAK’s CEO Toni Krankkala, who spoke at an event Gasgrid hosted in Oulu for businesses on the potential of green transition projects in North Ostrobothnia.

Gasgrid is implementing the national hydrogen pipeline network. Krankkala hopes for strong cooperation with the regions in the design of the hydrogen infrastructure. Regional cooperation should also help to guide national planning.

“Infrastructure construction should start where the identified potential is greatest. In other words, our sights are on where there is most renewable energy production and installations utilising hydrogen production.”

Actions to accelerate the hydrogen economy

NIHAK’s CEO presents a list of actions that have thrust the hydrogen economy forward. On the initiative of the regional development organisation, a number of municipalities and business in the southern part of North Ostrobothnia and the Council of Oulu Region drafted a joint opinion in which they highlighted the will to develop a future hydrogen network in the area and the reasons advocating the route.

“The Jokilaaksot area will produce more than half of onshore wind power by 2030. In addition to this, plenty of new clean energy projects are planned, related to solar, bio-energy and energy storage,” Krankkala reasons.

NIHAK is one of the first organisations in Finland to survey locations suitable for hydrogen production regionally.

“The survey shows that the area is excellently placed for large-scale hydrogen production. The survey enables marketing to actors interested in hydrogen production and related processing operations.”

The regional development organisation has also commissioned a regional study of carbon dioxide sources.

“The study shows that the biogas plants and biorefineries under construction in the region, as well as district heating plants, produce large amounts of carbon dioxide, which, when combined with the hydrogen produced, could provide a significant quantity of clean fuel.”

NIHAK has contacted all energy sector actors operating in the region and charted their plans related to hydrogen production.

“There are now a total of 60 wind and solar power projects represented by 30 different actors in the region. In addition, there are already several hydrogen production projects in the planning and permitting phase in our region,” Toni Krankkala enthuses.

Studies to promote a hydrogen network

What next?

“We will launch a techno-economic study on the connection of our region to the hydrogen backbone. The study will assess the feasibility and economic viability of the regional hydrogen network and connecting it to the backbone,” Krankkala says.

This will also include a survey of the possible distances between connection points. The study will be carried out in cooperation with Gasgrid, Fingrid and energy companies in the region.

At the same time, NIHAK will provide municipalities with up-to-date information to support land use planning and zoning.

Municipalities will benefit from the hydrogen industry

Toni Krankkala believes that the hydrogen economy will strengthen the competitiveness and prosperity of the municipalities.

“Development of the hydrogen economy will open up a range of different opportunities for municipalities and the entire region. The hydrogen economy may well be of greater significance than wind power construction. The investments will attract other chemical industries that benefit from hydrogen production.”

The most predictable benefit to municipalities is the tax revenue accruing from different sources. The benefits arising through indirect effects will become at least as important.

“All industrial activity brings with it indirect jobs, new residents, service needs and business opportunities. The new industrial base will also give the region a chance to increase its skills.”

“The promotion of clean energy and climate objectives in general will bring major benefits to the region in terms of increasing its attractiveness,” Krankkala sums up.

Social acceptance important

To promote the hydrogen industry, Krankkala thinks that the regions with the best knowledge of the potential and opportunities should be involved in the planning process.

Development should be transparent so that decision-makers in the region have access to up-to-date information and the development of the industry also gains social acceptance in the region.

“There is already strong political support for the long-term development of the hydrogen industry in the NIHAK region. Proactive cooperation is needed to maintain it. Also, the permitting processes for investment should be made as smooth as possible.”

Toni Krankkala will talk about hydrogen development in North Ostrobothnia at a stakeholder event to be held by Gasgrid on 27 November. The event is held in Finnish.

Read more

Hydrogen infrastructure inspired in Oulu – Gasgrid Finland

Now is the time for businesses to influence the development of the hydrogen infrastructures in regions – Gasgrid Finland

Hydrogen valley a regional anchor for the hydrogen economy – Gasgrid Finland

 

Text: Riitta Niskanen
Image: Mikko Törmänen

Hydrogen infrastructure inspires in Oulu

At a regional event organised by Gasgrid for businesses on the local development of the hydrogen infrastructure in Oulu on 11 October 2024, the atmosphere was high as around 50 actors gathered to listen and discuss the national hydrogen infrastucture. The event is one of nine regional debates organised by Gasgrid this autumn.

In Oulu, there was even a little competition between different regions for a place at the forefront of the green transition and the use of the hydrogen gas pipeline. In North Ostrobothnia, many things were found to have happened and to be happening to promote the green transition.
-We have many things going on, sums up Janne Hietaniemi, Account Manager at Business Oulu.
-Oulu has the research, technical know-how, and companies in the sector whose expertise can be used to develop hydrogen technology. An industrial-scale hydrogen plant is planned for Oulu and the city is planning large areas for green industry.
Managing Director Toni Krankkala from NIHAK, the development company of the Nivala-Haapajärvi region, continued to list the strengths from the perspective of the southern part of the Oulu province.
-The main electricity grid crosses the area, and has a significant amount of wind power and good transport links for the distribution of hydrogen, if not all the hydrogen is piped. There are also biorefineries on the way.
The perspective of a large industry committed to the green transition was brought forward by Harri Leppänen, a director of SSAB. SSAB’s Raahe plant is converting its iron production to fossil-free and needs hydrogen.
-The hydrogen pipeline network is very welcome. It is hoped that the pipeline will run close to the coast.
Esa Pellikainen, Executive Vice President of the Oulu Chamber of Commerce, believes that Gasgrid’s hydrogen gas pipeline will fit well into the investment decisions of the whole region.
-I am excited about the shared enthusiasm. But I hope that we can avoid unnecessary disputes between regions.

North Ostrobothnia in a good position in the hydrogen economy
The hydrogen pipeline will contribute to the green transition cost-effectively, said Olli Sipilä, CEO of Gasgrid.
-The ambitions are huge. Where they can be delivered competitively, we are well placed.
North Ostrobothnia is one such area.
– Clean electricity is everywhere here. Hydrogen production enables the exploitation of large-scale electricity potential. Northern Finland and northern Sweden are particularly good locations for electricity-based industry.
-40% of renewable energy production already comes from the North. It is entirely possible to attract billions of euros of investment here.

Gasgrid is organising a tour of nine regional business events around Finland this autumn. In Oulu, the development of the Hydrogen Infrastructure attracted around 50 participants from companies, municipalities, and various stakeholders.

Hydrogen gas moves efficiently in the pipe
Participants at the Oulu Business Event listened with interest to Gasgrid’s practical plans for a national hydrogen transmission route.
The aim is to build a pipeline over 1,000 kilometers long in Finland.
-Hydrogen allows energy to be transferred efficiently over long distances. A one-meter diameter hydrogen pipe can replace up to 15 power lines, said Olli Sipilä.
The underground hydrogen pipeline would run from southern Finland along the coast to Haparanda. The pipeline would need a 5 to 10-metre-wide strip of land.
-The hydrogen pipeline will mainly enter arable land, avoiding groundwater and recreational areas. Arable land is preferred because farming can continue normally in arable land even after the pipeline is built, said Gasgrid project developer Henriikka Pilpola.
North Ostrobothnia now has 2-3 options for the hydrogen transmission infrastructure, one of which will be implemented. Discussion with companies and other stakeholders will guide the planning process.

Ambitious targets for the Hydrogen Forum
Once the hydrogen gas pipeline alignment is decided, the planning of the regional hydrogen pipeline network begins.
The hydrogen pipeline “highway” and its branches will benefit municipalities and businesses through increased vitality, jobs, and tax revenues. The construction of the hydrogen pipeline requires planning, expert services, earthworks, and logistics, Gasgrid CEO Sipilä said.
The hydrogen pipeline has an ambitious timetable. Hydrogen gas would be flowing through the pipelines as early as the 2030s when ambitious emission reduction targets will enter into force in Europe. Finland is aiming for a leading role in the European hydrogen economy and the national hydrogen pipeline is part of this.
The cost of building the infrastructure needed to transport the hydrogen is estimated at €5 billion, while the hydrogen storage facilities would cost between €2 billion and €5 billion.

-Discussion with businesses and other actors is very necessary. It steers the hydrogen network plans in the right direction, says Olli Sipilä, CEO of Gasgrid.

Developing a market model for hydrogen transmission
Gasgrid’s national hydrogen network will be designed in partnership with regions and industry. Options for the pipeline route are now out for consultation.
-They will specify with the operators where the trunk line should run. Once the route alignment has been decided, the design of the pipes that will be installed as regional branches of the trunk pipeline will begin explains project developer Henriikka Pilpola.
In the coming years, a market model for hydrogen transport will be developed in parallel with the pipeline design. The aim is to engage companies, especially large industries, in the project so that an investment decision could be taken in 2026, by which time the pipeline should have all the permits and necessary alignments in place.
Summing up the debate, Olli Sipilä highlighted the importance of cooperation and social acceptance.
-You must feel that you are genuinely benefiting from the change. Regional and Nordic cooperation must work within and between different levels. We must also remember security, which is both technical and geopolitical security in the project.
-Then we have every chance of becoming a top player in the green transition at the European level.

Read more

Now is the time for companies to influence the development of hydrogen infrastructure in regions – Gasgrid Finland

Responsible decision-makers ensure investment and economic growth – promoting clean transition – Gasgrid Finland

Blog: building a national hydrogen network through cooperation – focusing on regional actors and needs – Gasgrid Finland

Hydrogen Valley is a regional anchor for the hydrogen economy – Gasgrid Finland

Hydrogen valley a regional anchor for the hydrogen economy

When green hydrogen production, consumption and storage are integrated into transmission infrastructure, the result is a hydrogen valley – a regional hydrogen network that serves both hydrogen producers and consumers.

There could be around a dozen such hydrogen valleys in Finland in the first wave of the hydrogen revolution. The European Union aims to have at least 50 hydrogen valleys – either under construction or operational by 2030.

The European Commission has approved four hydrogen initiatives (Integrated Projects of Common European Interest (IPCEIs) to raise more than €43 billion to promote green hydrogen. The support will be channelled into more than 120 projects involving nearly 100 European companies.

Hydrogen Valley was originally a European research and innovation concept that is now spreading around the world. An important milestone in the development of hydrogen valleys was seen in 2021 with the launch of the Mission Innovation Hydrogen Valley Platform. At the time, 21 European hydrogen valley projects were involved; the platform counter currently stands at 98 hydrogen valleys globally, with 67 located in the EU.

The EU Clean Hydrogen Joint Undertaking has to date supported 16 hydrogen valley projects across 15 countries. Together they represent investment of €1 billion, with total funding of close to €200 million through the Clean Hydrogen JU. One of the largest projects in the JU is BalticSeaH2, which will create a functional cross-border hydrogen valley between Finland and Estonia.

The majority of all hydrogen valleys are still in their early stages and a final investment decision has yet to be made.

 

Cross-border hydrogen flows

Although hydrogen valleys are being designed as highly local units, it is natural to create links between different hydrogen valleys. When regional hydrogen valleys are connected to the same hydrogen transmission pipeline, a national hydrogen infrastructure is created.

Finland’s national hydrogen infrastructure will comprise over 1,000 km of onshore gas pipeline, in addition to which international offshore pipeline connections for hydrogen transmission will also be built.

For example, gas transmission companies in Finland, Estonia, Latvia, Lithuania and Poland, as well as the German company Ontras, are exploring the possibility of building a Nordic-Baltic Hydrogen Corridor (NBHC). The aim is to transport renewable hydrogen between the six countries, potentially enabling the hydrogen pipeline to connect hydrogen valleys in Finland, the Baltics, Poland and Germany.

The pre-feasibility study of the project indicates the production potential of renewable hydrogen in the Nordics and Baltics to be approximately 27.1 million tonnes of renewable hydrogen production – using onshore and offshore wind and solar power – by 2040.

At best, the NBHC pipeline could reduce carbon dioxide emissions by up to 37 million tonnes of carbon dioxide equivalent per year by 2050. At the same time, the pipeline will improve energy security and diversity of supply in Europe and connect domestic renewable hydrogen production to existing and new hydrogen consumers.

 

Hydrogen valley – recipe for success

But what exactly is a hydrogen valley? A hydrogen valley produces clean hydrogen that is used – where possible – by various sectors and industries. A hydrogen valley combines the production, transmission, use and storage of renewable hydrogen in a way that highlights regional agency and strengths. Regional actors such as cities, municipalities and regional development companies have a key role to play in promoting hydrogen valleys.

Here’s how it works: hydrogen production plants in a hydrogen valley produce hydrogen, for example through electrolysis. In this case, water is split into hydrogen and oxygen using renewable electricity such as wind and solar power. The process produces no emissions.

Renewable hydrogen is used as it is in industry, e.g. in iron ore reduction in connection with steelmaking. Renewable hydrogen can replace fossil fuels such as natural gas and crude oil. Green hydrogen can also be used, for example, in the manufacture of fertilisers and synthetic fuels, and it can also be used to reduce carbon dioxide emissions from shipping and aviation.

An important building block in this configuration is hydrogen transmission and storage. Hydrogen valleys need to have extensive distribution networks that allow hydrogen to be transmitted from production sites to points of use, such as industrial installments and filling stations.

In addition, the transmission pipeline itself provides short-term storage of hydrogen. Large-scale underground storage technology is also being developed. Other hydrogen storage methods include pressurised tanks and hydrogen liquefaction.

 

Lower CO2 emissions with hydrogen

Renewable hydrogen production is a key driver of the energy transition. Hydrogen is needed when switching from fossil fuels and products to emission-free energy and products. Onshore wind power is the largest raw material for renewable hydrogen production in Finland.

The renewable hydrogen vision is so vast that no one can yet really grasp its full impact. However, the promise on the horizon is being translated apace into plans and actions: Gasgrid is already working on routing options for Finland’s national hydrogen infrastructure and hydrogen transmission needs.

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Hydrogen economy has huge potential

  • a hydrogen economy built on hydrogen infrastructure can have a nationally economic impact of around €70–110 billion
  • a potential employment impact of as many as 100,000 jobs in Finland
  • the hydrogen economy will improve Finland’s energy independence and security of supply
  • Gasgrid has been mandated by the State of Finland to develop a national hydrogen infrastructure, to engage in cross-border infrastructure collaboration support and to support hydrogen market development in the Baltic Sea region
  • Gasgrid’s goal is for the hydrogen market and infrastructure to be operational in Finland in the early 2030s
  • the intention is to initiate the permit processes for the hydrogen network during 2025
  • the Baltic Sea region has the potential to produce up to 45% of the clean hydrogen target defined in the REPowerEU plan by 2030
  • Gasgrid and its international partners are currently promoting three cross-border hydrogen infrastructure projects in the Baltic Sea Region: Nordic-Baltic Hydrogen Corridor, Baltic Sea Hydrogen Collector and Nordic Hydrogen Route
  • the planned hydrogen infrastructure is planned to cover Finland, Sweden, the Baltic States, Poland and Germany by 2030

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Interviewees for this article:
Heli Virkki, Head of Hydrogen Valley Development at Gasgrid, and Elina Mäki, RDI Project Manager at Gasgrid

Other sources used in this article:

Repowering the EU with Hydrogen Valleys: Commission presents progress towards a European hydrogen economy – European Commission (europa.eu)

Nordic-Baltic Hydrogen Corridor: Gas transmission operators complete pre-feasibility study  – Gasgrid Finland

BalticSeaH2 (balticseah2valley.eu)

 

Read more:
More information about Gasgrid’s hydrogen projects

Now is the time for businesses to influence the development of hydrogen infrastructures in regions

Finland – a great hydrogen power. Could hydrogen be the next Finnish success story?

 

Text: Sami J. Anteroinen
Images: Otavamedia

National hydrogen infrastructure requires co-operation – focus on regional operators and needs

Finland is currently exploring routing options for national hydrogen infrastructure and the need for hydrogen transmission capacity. A hydrogen economy built on hydrogen infrastructure can have a national economic impact of around EUR 30 billion and create jobs for 100,000 people. The hydrogen economy will bring new investments and jobs to municipalities, as well as improve Finland’s energy independence and security of supply. Once completed, the national hydrogen grid will thus have a significant impact on municipal finances and regional well-being.

The text ties in with the Kuntamarkkinat municipal fair which was  held September 18–19, 2024, in Helsinki, where Gasgrid took part in the discussion on national hydrogen grid routing and the opportunities the hydrogen economy will bring to municipalities. The blog was published in Finnish on the Kuntamarkkinat website.

Gasgrid has been mandated by the State of Finland to develop a national hydrogen grid and engage in cross-border infrastructure collaboration.

Planning and building hydrogen infrastructure is a massive undertaking! The first spade will strike ground where we find the greatest demand for and interest in the hydrogen industry. Our goal is for the hydrogen market and infrastructure to be operational in Finland in the early 2030s. The pipeline would transmit green hydrogen, i.e. hydrogen produced mainly with renewable electricity. Green hydrogen is needed as a raw material for industry to replace fossil energy sources.

The development efforts need the involvement of municipalities, decision-makers, and companies even before the permit processes begin

The intention is to initiate the permit processes for the hydrogen grid in 2025. The environmental impacts of the national hydrogen grid will be assessed in regional Environmental Impact Assessments (EIA), which will involve extensive studies on, among other things, the current state of the planned pipeline routes. The impacts on, for example, nature, the landscape, people and land use will also be assessed.

Public events will be held in connection with the EIAs, and we will collect feedback on the route options from stakeholders. Thereafter, the projects will advance to a more detailed planning phase and the subsequent permit phases, which will draw on the collected data and feedback.

The national hydrogen grid will comprise over 1,000 kilometres of onshore gas pipeline, in addition to which international offshore pipeline connections will be built. The onshore gas pipeline will be laid underground at a depth of roughly one and a half metres. The right-of-way needed for the pipeline is around five to ten metres wide, and, for instance, farming can continue after construction as before.

Various stakeholders now have, even before the actual EIAs and permit procedures begin, an excellent opportunity to influence the planning of the national hydrogen grid, as they can contact us during the currently ongoing route planning.

The hydrogen grid and economy can only be achieved through smooth co-operation, and the work will be carried out for the common good.

Gasgrid is building hydrogen infrastructure and a platform for a hydrogen market in Finland.

 

Kirsi Koivunen
Head of Permitting, Gasgrid
kirsi.koivunen(at)gasgrid.fi

Heli Virkki
Head of Hydrogen Valley Development and Customer Project Development, Gasgrid
heli.virkki(at)gasgrid.fi

Gasgrid is the transmission system operator responsible for gas transmission, the transmission system in Finland, and the builder of the national hydrogen infrastructure. We offer our customers safe, reliable, and cost-effective gas transmission and connection service. We actively develop our transmission platform, services, and the gas market in a customer-oriented manner to promote the carbon-neutral energy and raw material system of the future. Gasgrid Group consists of the state-owned parent company Gasgrid Finland Oy, and the subsidiaries Gasgrid vetyverkot Oy and Floating LNG Terminal Finland Oy. Read more: gasgrid.fi/en

Now is the time for businesses to influence the development of hydrogen infrastructures in regions

Gasgrid will organize nine discussion events in autumn across Finland, where companies will have the opportunity to express their views on the routing of the hydrogen transmission backbone in Finland, the need for hydrogen transmission, and their interest in joining the hydrogen network in their area. Get involved early!

Up to €110 billion and 100 000-200 000 new jobs. The investments brought by the hydrogen economy can be a much-needed engine of economic growth in Finland in the coming decades.

“How will future hydrogen producers and consumers be located spatially in relation to the location of the trunk pipeline? We are also interested in local transmission capacity needs,” Heli Virkki says.

Heli Virkki, Head of Hydrogen Valley Development at Gasgrid, lists several reasons why Finland could become Europe’s leading hydrogen economy:

  • Finland has a competitive price for renewable electricity production in Europe
  • Finland has plenty of space to build new wind power onshore, unlike in Germany, for example, where the only option to build new wind power is offshore
  • Our electricity grid is extensive and technically well-functioning
  • Reliability of electricity supply is among the best in the world
  • Finland’s forest industry produces bio-based carbon dioxide, which, in addition to renewable hydrogen, is an important raw material for the hydrogen economy
  • Finland has lots of fresh water, from which green hydrogen is produced by electrolysis using renewable electricity.

The next step is to identify the regional connection needs to the hydrogen pipeline and the need for transmission capacity

Gasgrid is building a national hydrogen network in Finland. The route options for the hydrogen backbone were announced in April this year. The most technically and economically feasible route for the trunk pipeline is currently being sought in the north-south direction. The provinces and municipalities have already submitted their land-use comments on the route, and now it is the turn of companies and developers.

“In autumn, we will organize a discussion event in nine localities for companies to give feedback on the route options for the pipeline and express their interest in regional connectivity,” says Virkki, who welcomes all companies with activities related to the hydrogen economy to participate.

“We probably don’t even know all the companies linked to the hydrogen economy yet. There may also be companies that do not directly produce or use renewable hydrogen. For example, district heating companies or greenhouse entrepreneurs may use surplus heat generated as a by-product in electrolytic hydrogen production.”

Gasgrid is asking companies to do two things at the discussion events.

“The core is location information, i.e. from which locations future hydrogen producers and users would come to connect to the hydrogen transmission pipeline. Gasgrid will also provide a techno-economic pre-planning service to identify connection possibilities. Transmission capacity is also of interest: how much hydrogen a future hydrogen producer or consumer intends to transport. This information will help our technical design when considering the sizing of the pipeline.”

For project developers and companies, there is also a market survey on Gasgrid’s website where this information can be provided in confidence.

Companies are asking Gasgrid a lot of questions about the hydrogen network, and rightly so.

Alustavat vaihtoehtoiset vedynsiirtoverkon reittisuunnitelmat, jotka tarkentuvat suunnittelun edetessä./ Preliminary alternative route plans for the hydrogen transmission network, which will be refined as the planning progresses. / Preliminära alternativa ruttplaner för vätgasöverföringsnätverket, som kommer att förtydligas i planeringens fortskridande.
Preliminary route options for the hydrogen backbone were announced in spring. They are now being refined based on regional feedback.

 

“A lot of questions have been asked about the safety distances and alignment principles of the hydrogen pipeline, i.e. where the trunk pipe can be laid. There are also safety issues. These are very important issues for us to consider in hydrogen infrastructure projects,” says Virkki.

Companies are also interested in how the hydrogen market will work in the future: for example, how the marketplace will be built, how to connect to the infrastructure, how capacity reservations will be made, and how pricing will be set.

Companies should be active in the discussions and ask questions, even if, according to Virkki, not all questions may yet be answered.

“For example, there is still no legislation on hydrogen transmission, so the natural gas regulation and the hydrogen guidelines published by Tukes at the beginning of the year are used as a basis for planning.”

Planning for the connection of regional hydrogen valleys will start once the trunk pipeline has been routed 

Once the route of the hydrogen trunk pipeline has been decided, the design of regional hydrogen pipeline grid will start from around 2025. These are smaller diameter, low-pressure grids, hydrogen valleys, which join the trunk pipeline as regional branches.

Heli Virkki describes a hydrogen valley as an industrial-scale hydrogen hub, where the entire hydrogen value chain can be found:

  • Renewable electricity production
  • Hydrogen production
  • Hydrogen storage
  • Hydrogen transmission
  • Final use of hydrogen

Hydrogen economy also provides large employment at the regional level

The hydrogen economy brings new opportunities and jobs to municipalities. Initially, the focus will be on jobs related to the design and construction of new industrial plants. Regions will need specialists in areas such as permitting, engineering, land use planning, and zoning. The construction of hydroelectric plants and infrastructure will also require a large regional workforce.

“In the operational phase, the operation of hydrogen plants and the running of the business also require specific skills and create new jobs in municipalities. Managing the regulation of the hydrogen economy coming from the EU also requires new skills.”

Educational institutions have already started to design training programmes for the hydrogen economy.

“For example, Tampere University of Technology has launched a graduate engineering degree programme in energy disruption. The interdisciplinary subject combines electrical, energy and information technology, environmental sciences, chemistry and social sciences, among others. Its aim is to train people for the green transition, not just for the hydrogen economy,” says Virkki.

Investment decisions already amounting to €150 million

Currently, €150 million in investment decisions have been taken in Finland’s hydrogen economy, and many more are planned.

For example, P2X Solutions’ hydrogen plant will start operations in Harjavalta this autumn.   It will start producing green hydrogen for industrial use. It will also process hydrogen into renewable synthetic methane and methanol using captured carbon dioxide. These can be used as fuel for road and marine transport.

Helen is also building a pilot hydrogen plant in Vuosaari in Helsinki and Fortum in Loviisa, both of which will use electrolysis to produce hydrogen.

Text by Jouko Vuorela

Images by Gasgrid and GettyImages

Responsible decision maker ensures investment and economic growth – promoting a clean transition

In today’s society, economic growth and responsibility go hand in hand. They also lead to a safer and more prosperous society. In Finland, we can operate within a long-term investment and infrastructure development framework, in a politically and economically stable society. Our companies recognize that sustainable economic growth is not only financially sensible but also ethically necessary. In practice, this means achieving economic growth in a way that respects the environment and our society. Good examples of this are using renewable energy sources, adhering to the principles of the circular economy, and promoting social justice. Companies that are genuinely committed to sustainability and responsible business practices and actively develop the related business processes not only improve their reputation, but also generate far-reaching economic benefits. For example, Finland’s investment in clean electricity led to the lowest electricity prices in Europe in July 2024. For investors and customers, as well as other key stakeholders such as employees and financiers, truly responsible companies are seen as more innovative and attractive. To attract investment to Finland, we as business decision-makers must do our part to ensure that the organizations we run, deliver the attraction that investments require.

At Gasgrid, responsible business is not just about the way we do business, our whole existence is based on promoting clean transition, energy independence, and strong security of supply for our society. We start our working day in a socially significant community that sees great opportunity in the change that energy disruption brings. Our future multi-gas platform will be built to serve the market demand for low-carbon energy sources, creating jobs and boosting the entire Finnish energy sector. In line with the Government’s decision in principle, we are committed to claiming Finland’s place at the forefront of the European hydrogen economy. We aim to create good and predictable conditions for investment in Finland, especially in the production of hydrogen and the downstream industry that uses it. A functioning and productive hydrogen economy enables growth in its various value chains, such as technology and service companies, and brings the necessary vitality to the regions. The large hydrogen production potential also provides Finland with significant export earnings. Every decision-maker should think about what replacing foreign fossil imports with domestic energy-requiring technologies and services can mean for them – and what am I prepared to do in concrete terms?

Combining economic growth and responsibility is not always easy, but it is possible. Finland’s clean and secure energy palette is an example of what a genuine commitment to sustainability and responsibility can deliver. We business decision-makers have an important role to play in this work. To serve sustainable development and economic growth, we can, for example, promote investment in green technologies, strengthen product and service development based on sustainability, and strive to ensure job creation and the professional competitiveness of our talents in the international arena. Governments can support this development by providing incentives and regulations that promote sustainable economic growth. In many cases, sustainability can be seen from a limited angle or as adding to unnecessary reporting. Artificial intelligence will hopefully help on the latter point. The benefits-first approach has helped, at least in our small business, to integrate it throughout the organization – part of our company DNA.

In the future, the importance of economic growth and accountability will become even more important. Climate change, resource depletion, and social inequality are global challenges that require urgent action from us. Responsible economic growth offers solutions to these challenges and lays the foundations for a sustainable and equitable future. The development of a hydrogen economy requires significant investment in infrastructure and technology, but the benefits it brings – a cleaner environment, energy independence, new industries, and jobs – represent an opportunity we cannot afford to miss. At the same time, we are also enabling a safer and better-off society for all of us. Today at the latest is a good time to start integrating clean growth and the hydrogen economy into the responsible strategies of our companies!

Olli Sipilä, CEO, Gasgrid

The blog is produced for the No Bullsh*t! Corporate Social Responsibility Program directed for corporate decision-makers by the Chamber of Commerce Finland.

Finland – a great hydrogen power. Could hydrogen be the next Finnish success story?

Gasgrid took part in the hydrogen-related panel discussions at SuomiAreena in Pori. The texts below are a compendium of three separate discussions.

From the perspective of natural resources, know-how and industry, Finland is excellently placed to use the hydrogen economy to create an impact of €30 billion on the national economy and employ up to 100,000 people. But how can the feat be pulled off?

In the discussion at VetyAreena in Pori, Gasgrid CEO Olli Sipilä pointed out that the leap to a hydrogen economy is an important part of the green transition and phasing out fossil fuels.

“Hydrogen and its downstream processing offer us enormous potential,” Sipilä said.

It helps that the “backbone” is in order. In this case, it means that Finland has an excellent electricity and energy system and excellent conditions for making clean electricity.

“We can use hydrogen to make methane and aviation fuels, for example, and gain a competitive edge.”

 

 Hydrogen plant for the whole of Europe?

 

In 2023, the Government adopted a resolution aiming to make Finland the European leader in the hydrogen economy, producing 10% of the EU’s clean hydrogen. Gasgrid is supporting the implementation of the decision through its national hydrogen projects.

The Finnish Government has mandated Gasgrid Finland to promote the development of the national hydrogen infrastructure, international infrastructure cooperation and the hydrogen market in the Baltic Sea Region. The company is currently studying possible routing options for the national hydrogen infrastructure and hydrogen transmission needs in Finland and the Baltic Sea Region.

“The investment decision for Finland’s hydrogen infrastructure is intended to be made in 2026 and it should be completed in 2030,” Sipilä said.

 

Three extensive infrastructure projects

 

The future national hydrogen backbone comprises three extensive infrastructure projects: Nordic Hydrogen Route, Baltic Sea Hydrogen Collector and Nordic-Baltic Hydrogen Corridor. Concrete route planning is being carried out the whole time in consultations with, for example, municipalities and regions.

In the VetyAreena discussion, Sipilä reminded everyone that no-one can build the hydrogen infrastructure alone. Regions and industrial actors need to be involved in the planning.

“An active, transparent approach is very important in this respect.”

Antti Arasto from VTT Technical Research Centre of Finland pointed out that cooperation is of far broader relevance, too.

“Finland is part of a global transformation.”

Change must not only be anticipated, but also managed. Finland has good opportunities to charge the hydrogen economy with competitiveness that will last throughout its lifecycle.

“We have been dealt an excellent hand for this,” Sipilä said.

 

Hydrogen ball effect

 

In Sipilä’s recipe for success, we need to keep critical infrastructures under our own control, creating value and more opportunities. This is how to enable the creation of a snowball effect where success fuels success.

 

However, there are still some building blocks missing, such as seasonal electricity and gas storage found in Central Europe. These are needed as a basis for Finland’s industrial investments. Another issue is the volatile nature of the hydrogen transformation. According to Sipilä, we’re now navigating between “hype and despair” since the matter is new.

“All the same, the transformation is progressing, as did, for example, the internet in its day.”

Also Petri Peltonen at the Ministry of Economic Affairs and Employment considers that hydrogen is unstoppable.

”The direction of change is obvious”, he said in the discussion.

Antti Arasto hoped that as many Finnish technology actors as possible would be involved in the hydrogen transformation. The production of hydrogen alone is not the creation of high added value that all strategy papers call for. The large market will also enable the development of the technology and service sector.

 

Directive driving legislation and investment

 

The EU directive on renewable energy sources that entered into force in October 2023 applies to heavy industry, maritime, aviation and heavy-duty transport, and will also set the pace for the spread of hydrogen use.

“The directive is now being transposed into national legislation and then hopefully we will see a lot of smart investments,” Sipilä said.

According to Sipilä, recent years have seen us experience a real flyover of black swans, as various shocks – from corona to war, from inflation to electricity price spikes – have shaken Europe.

“We have experienced a huge change, and as a result, clean energy targets have been tightened in Europe,” Sipilä discussed.

“Together, we can create bold game-changers.”

 

A boost for basic industries

 

At the same time, the hydrogen economy can regenerate our traditional industries, such as the forest and metal industries, the panel discussed.

“Hydrogen can help Finland to become the engine of a clean economy,” Sipilä summed up.

Marko Janhunen, Vice President, Public Affairs at Gasgrid, who was on the second hydrogen panel of the day, pointed out that hydrogen has crept onto society’s agenda relatively quickly.

“When Hydrogen Cluster Finland was created just under four years ago, there were around 30 member companies. There are now 101 members,” he says.

“Companies want to be involved in these activities and see that they have something to contribute.”

Another very positive point is that the Hydrogen Cluster involves the entire value chain in the sector.

“A very large section of the Finnish industrial spectrum is involved,” Janhunen points out.

 

Don’t miss the hydrogen train

 

Former Finnish prime minister Matti Vanhanen (Centre Party), who participated in the panel, stated that Finland as such would not need to produce so much hydrogen purely for its own needs, but building the hydrogen infrastructure and gearing it up for exports will pay for itself.

“We need be involved in this, because the hydrogen economy will bring investments to Finland.”

Janhunen pointed out that Finland has not yet implemented any directives that will create a market for hydrogen.

“The market for hydrogen derivatives fuels will not emerge until the 2030s.”

Janhunen sees the distribution obligation stemming from legislation as the next step.

“Investments are now being made to take slices of that future cake. Because the Finnish market is small, the hydrogen economy will automatically become an export industry,” Janhunen considers.

Caption: Janne Peljo left), Chief Policy Adviser at EK Confederation of Finnish Industries; Matti Vanhanen, former Finnish prime minister; and Marko Janhunen, Public Affairs and Corporate Communications Director at Gasgrid, on Gasgrid’s discussion panel.

 

The From Hydrogen to Energy for the Finnish Economy panel discussion explored hydrogen-related opportunities

 

Gasgrid CEO Olli Sipilä reminded the audience that it is smart to electrify everything possible in terms of combating climate change. Hydrogen and its derivatives are a good solution for industries that are difficult to electrify and for electricity storage.

Sipilä was joined by Maria Löfgren, President of Akava – Confederation of Unions for Professional and Managerial Staff in Finland, who stated that the hydrogen economy may well be the answer to the challenges of planetary sustainability.

“On the other hand, the hydrogen economy is also a matter of know-how,” she reminded the audience and highlighted the importance of education and training.

The panel also addressed the kind of profile shaping up for the hydrogen economy. It is hard to sum up the merits of hydrogen since it can be used for so many things.

“One example of a domestic hydrogen economy in the future could be the world’s best and most sustainable aviation fuel,” Sipilä envisions.

 

Saviour of the regions?

 

Sipilä, who hails from the borderlands of Kainuu and Upper Savonia, pointed out that the hydrogen revolution is also quite “region friendly”. While many megatrends are packing people into cities, the hydrogen economy will open up opportunities for the regions by decentralising production.

“This is an opportunity to create regional growth.”

The hydrogen economy in itself is nothing new – perhaps the fourth “coming of the hydrogen economy” is already underway. However, Sipilä thought that this time there is something different.

“We’re now in a situation where wind and solar power are historically cheap but since storing them is challenging, it makes sense to use hydrogen.”

Member of the Finnish Parliament Atte Harjanne (Green) added that hydrogen will also have a positive impact on district heat.

“Hydrogen production will also reduce carbon dioxide emissions from district heat production.”

 

First aboard a ship, then in a pipeline

 

Whereas it’s unlikely that hydrogen will flow from Finland to the world via a pipeline this decade, ammonia or fertilisers made from hydrogen can already be transported aboard a tanker. Going forward, steel made with hydrogen could be a real hit.

The panel participants agreed that there are already many applications and more are emerging the whole time. Sipilä believes that Finnish startups will also get a boost.

“We have both old and emerging technology companies whose best area of expertise is electricity.”

 

The Baltic Sea Region can produce almost half of the EU’s clean hydrogen.

 

In June 2024, nine gas transmission system operators operating in countries around the Baltic Sea signed a memorandum of understanding to coordinate and facilitate hydrogen infrastructure and also to foster hydrogen market development in the Baltic Sea Region. The companies’ activities are closely linked to the EU’s Baltic Energy Market Interconnection Plan (BEMIP).

The Finnish government has mandated Gasgrid to develop the national hydrogen infrastructure and cross-border infrastructure cooperation. There are currently three cross-border hydrogen infrastructure projects in the Baltic Sea Region that have received EU PCI (Project of Common Interest) status: Nordic-Baltic Hydrogen Corridor, Baltic Sea Hydrogen Collector, and Nordic Hydrogen Route.

In addition, the gas transmission system operators are planning to implement in a coordinated manner other projects covering cross-border interconnectors, domestic backbones, and hydrogen storage.

“The Baltic Sea Region has the potential to create a real global powerhouse through cooperation,” Olli Sipilä highlighted at the VetyAreena in Pori.

The Baltic Sea region has renewable energy resources and thus there is the potential to supply up to 45% of the clean hydrogen production outlined in the REPowerEU plan by 2030. The Baltic Sea region holds substantial potential for onshore and offshore wind, which could be used for hydrogen production and to create a clean hydrogen market in the near future.

This is why infrastructure and industrial companies operating in the Baltic Sea Region are now developing new hydrogen pipeline infrastructure to unlock the potential of hydrogen production. In addition, the target is to deliver hydrogen from supply rich regions to demand centres.

Coordinated development of hydrogen infrastructure in the Baltic Sea Region will support the development of a flexible, safe, resilient, sustainable, and integrated pan-European energy system. The planned hydrogen infrastructures contributing to the achievement of EU and regional targets, is planned to cover Finland, Sweden, the Baltic states, Poland, and Germany by 2030.

 

Story Sami Anteroinen / Photos Marjaana Kivioja

 

Gasgrid’s 1st year

I am re-reading the materiality assessment concerning our responsibility work a couple of days before Christmas. In it, our stakeholders’ views of what is expected of a responsible Gasgrid are summarised. Safety, security of supply and equality come up as primary matters, and after these, mitigation of climate change, openness, as well as a skilled and healthy personnel.

Therefore, Gasgrid’s first year as a developer of Finland’s gas transmission infrastructure and operator in an open gas market, operating on it can be considered successful based on these criteria. Safety was at a good level for us and our partners. It is our aim that everyone involved in our operations gets home safely after work. Our operational reliability has been top level, and this, along with safety, is among the things we do not compromise on. The global pandemic showed the importance of security of supply and preparedness. In February, when the risk level rose, we reviewed our contingency plan regarding the pandemic and successfully launched countermeasures. Our customers have also told us about their satisfaction. The competitiveness of gases has improved, and the market has worked well. These messages inspire us, because particularly our customer-facing professionals and those working to ensure security of supply have worked flexibly and bravely to achieve this. We take these insights and feedback as guidelines for the next year.

What made it possible for a small organisation to succeed in the middle of a big change – and when in addition, one of the biggest crises in recent history in the form of COVID-19 hit us? I think it is crystallised in a great way in our recently defined values, which our personnel were responsible for identifying.

We acknowledge our responsibility – our company is driven by a strong sense of responsibility toward our customers, our stakeholders and the society. Competent professionals tirelessly strive to combine responsibility, safety, customer orientation, efficiency and agility into good decisions. I can see this commitment in the actions taken every day. A top expert in a critical device leaves on a weekend to ensure its correct operation. A customer team prioritises its tasks so that we can take the necessary measures very quickly when a sudden need arises for a customer. And in a repair situation, we agree with the customer about using gas at the right time to avoid methane emissions. Gasgrid aims to be the best and the most customer-oriented gas industry operator at least in Europe. We believe we can achieve this with the commitment of a healthy and competent personnel. This will be our focus also in the coming years. Gasgrid’s operations started on 1 January 2020 at 00:00, after which not a second has passed when someone has not been taking care of the security of Finnish gas supply and the company’s operations. Particularly in this exceptional year of coronavirus, I want to thank every Gasgrid employee very much for their commitment and actions.

We are building the future – It has been great to see that in the middle of the coronavirus crisis, investments in the mitigation of climate change are growing in the EU and globally. We at Gasgrid, together with our stakeholders, prepared a new strategy. Our vision for 2035 is: Gases enable a carbon-neutral society – we provide a platform for it. We want to be a bold pioneer in change and a unifying factor in the industry. Our strategy has three external focus points: 1) Transmission platform of the future, 2) customer-oriented gas market and 3) responsible force for change. Hydrogen economy can transform Finland into an exporter of clean energy and flexibility. Increasing the use of biogas more actively could bring jobs throughout Finland even in the short term. In the climate and energy strategy to be prepared in 2021, ambitious milestones should be created for the coming years and a vision created regarding the roles of hydrogen economy, other P2X technologies and sector integration in Finland for 2030–2050. Although the world is now running at top speed, our conclusions should be drawn, and choices made in a coolheaded way. I would search for an answer to the question: where are the needs and competitive advantages of Finland – and what is their demand globally? It is important to launch pilots and demonstrations as quickly as possible so that we learn more about both the technologies and about the necessary market structures.

We work together – this is maybe the most important thing. Gasgrid’s operations are based on openness, fairness and good community spirit both inside the company and in extensive cooperation with our stakeholders. We want to be a reliable partner that is easy to approach. As a team, we take care of each other and let everyone be themselves. The market operators have been open in providing feedback to us. I value this dialogue, because based on it, we can prioritise the things that are important to you. Although there is still much to be developed in the regional gas markets, the structures and cooperation have deepened significantly with the gas grid companies in the Baltic countries. We continuously strive to develop the market structures and to communicate about the way the markets work so that our customers and societies would benefit from the existing infrastructure. We also work in cooperation with the European Commission and the region’s energy ministries as well as regulators to ensure that the markets develop. In Finland, we engage in extensive cooperation both within the gas sector, between the operators in security of supply, as well as in the development of the entire energy and raw material system. I thank all our stakeholders for the joint efforts, for our open and direct discussions, and for the trust shown in us in our first year of operations.

Acknowledging our responsibility, we continue building the future, working together. Wishing you all happy holidays and a successful year 2021,

Olli Sipilä
CEO, Gasgrid Finland Oy

Gasgrid Finland Oy is a Finnish state-owned company and transmission system operator with system responsibility. We offer our customers safe, reliable and cost-efficient transmission of gases. We actively develop our transmission platform, services and the gas market in a customer-oriented manner to promote the carbon-neutral energy and raw material system of the future. Find out more: www.gasgrid.fi/