Finland’s competitiveness and sustainable development rely on an energy system – one that covers energy production, procurement, distribution, storage and use – that operates reliably in all circumstances and is based more firmly than ever on Finnish renewable energy sources. This article describes the central role that the methane network plays in the energy market transition.

According to Gasgrid’s vision, renewable gases – biogas, e-methane, green hydrogen – and captured carbon dioxide are key enablers of a carbon-neutral society. Our task is to facilitate their growth by creating a gas transmission platform that functions as an integral component of the entire energy system.

The current transmission infrastructure for methane and the future one for hydrogen, including terminals, form a flexible gas transmission system that enables diverse energy streams from production to consumption.

The methane market is developing rapidly, opening up new opportunities for market participants and simultaneously supporting current customers’ capabilities to utilise gas predictably and cost-effectively. As a whole, this development allows us to confidently plan and build production processes that rely on gas.

Renewable methane gas will replace fossil natural gas, and the global renewable methane market is growing

Methane users in Finland include electricity and heat production, industries, and heavy maritime and road transport, for example. Its benefits are versatility, a high degree of availability, and existing transmission infrastructure and utilisation equipment.

The current challenge, however, is that the majority of methane is fossil natural gas, which restricts its use and raises doubts about the market’s viability. Confidence in natural gas has been further undermined by the cessation of pipeline transmissions due to Russia’s war of aggression and the price spikes during the resulting energy crisis. The Hormuz Strait crisis in the Middle East also highlights the current market’s uncertainties. At the same time, the crisis underscores the importance of increasing domestic production of renewable gas, which would buffer our market and society against a volatile global operating environment.

Solutions to meet the demand for renewable gases are now on the horizon. Several renewable biogas and e-methane production projects to be connected to the gas transmission network are being planned in Finland, with a total output of some 7 terawatt hours per year, which corresponds to approximately half of the current total consumption. Meanwhile, the global market for renewable methane is growing, which increases both demand and availability through LNG terminals, for example. In 2025, Finland used an estimated 1.5 terawatt hours of domestic and imported biogas.

Methane-fuelled generation solutions offer reliable electricity production

The rapid growth in renewable weather-dependent electricity production significantly increases balancing power, standby power, and energy storage needs. Methane-fuelled, decentralised electricity generation solutions currently offer an efficient, economical, and reliable means of generating electricity precisely when wind and solar power production are not enough. Gas power solutions curb sudden electricity price spikes, causing hundreds of millions of euros in additional costs for consumers and industry. This growing need is illustrated clearly by our role in preparing significant additional capacity for gas-fuelled electricity production.

The methane system and its transmission services play a vital role in the future of gases. Alongside stable industrial use, the balancing power and standby power needs of electricity production increase the demand for transmission solutions. Developing a methane market based on Finnish renewable gases is a strategic investment in an energy self-sufficient, clean and energy secure Finland, creating a sustainable foundation for economic development.

Janne Grönlund
Senior Vice President, Gas Business
Gasgrid

Did you know?

Biogas, e-methane, and natural gas are all chemically the same substance – methane, which is made up of hydrogen and carbon. The molecule is identical in each case (CH₄), allowing it to be transported in the same transmission network. The renewable origins of methane are guaranteed through guarantees of origin and sustainability certifications. Gasgrid enables this renewable gas market through the transmission network and services.

Gasgrid is a multi-gas company of the future providing energy transmission system solutions to promote clean transition and an energy-efficient society. We strengthen Finland’s economic growth, security of supply, and energy independence, and support the balancing power required for emission-free electricity production. Through our international infrastructure projects, we are preparing to meet the demand for clean gas energy in Europe as well. Gasgrid Group’s business operations consist of gas operations, LNG terminal operations, hydrogen development, and project execution. More information: gasgrid.fi/en

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