Development / Finland into the most attractive hydrogen economy country in the world

Making Finland the world’s most attractive hydrogen economy country

Under a Government resolution, Finland aims to play a leading role in Europe’s hydrogen economy. Cooperation between companies, municipalities and other actors will play a key role in the development of Finland’s hydrogen economy.

The shared ambition is to make Finland the leading hydrogen economy, which will create investment opportunities for industry and support Finland’s and Europe’s carbon neutrality goals. The hydrogen economy will bring new investments and workplaces, as well as improve energy independence and security of supply. This will improve Finland’s competitiveness and provide us with sustainable wellbeing across the country.

The transmission and storage of hydrogen will play an important role in enabling the hydrogen economy. Hydrogen networks will create new business opportunities for different actors through the development of new value chains, products and services.

From hydrogen to greater energy independence

In addition to contributing to our climate goals, hydrogen economy strengthens Finland’s energy self-sufficiency and security of supply. Finland’s competitive electricity prices, well-functioning energy system, abundant renewable energy and biogenic CO2 make us an ideal player in Europe’s hydrogen economy.

With hydrogen, Finland can play a stronger role in the green transition and build a sustainable future. The green hydrogen on Gasgrid’s network is produced from water by electrolysis, using renewable energy such as wind or solar power. For example, green hydrogen can be used to replace fossil hydrogen in industry and to produce e-fuels such as petrol and diesel.

The benefits of hydrogen are particularly apparent over long distances: a one-metre diameter hydrogen pipeline carries many times more energy than a large power line.

Gasgrid is enabling the creation of a hydrogen economy

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. Connections to Europe are important for the hydrogen economy to enable Finland to also generate export income.

The mission of Gasgrid Finland’s subsidiary, Gasgrid Vetyverkot Oy (Gasgrid Hydrogen Networks), established in 2022, is to develop the hydrogen transmission infrastructure to enable the creation of a hydrogen economy and to promote Finland’s role in the hydrogen economy. As a leader in the energy future, Gasgrid Finland will build a hydrogen transmission pipeline to connect hydrogen producers and consumers not only within Finland but also across Europe.

At the moment: we are currently studying possible routing options for the national hydrogen infrastructure and hydrogen transmission needs in Finland and the Baltic Sea region

Gasgrid has initiated a number of hydrogen infrastructure development projects in the Baltic Sea area to strengthen energy self-sufficiency and to promote the creation of hydrogen economy investments in Finland.

The company is currently exploring options for the national hydrogen infrastructure and hydrogen transmission needs in Finland and the Baltic Sea region. As part of our development work, we continuously collect information from our stakeholders. For example, we have launched a hydrogen market study to ascertain industries’ interest in joining the hydrogen infrastructure in the future and to assess the development of industrial operators’ projects in relation to infrastructure development needs.

The hydrogen market study (please find it on the side labeled as Market consultation survey) is open to all industrial actors and project developers in the hydrogen market. During the study, operators will be asked to provide information on the location of potential hydrogen projects, the need for hydrogen transmission and storage, and the development schedule for the projects.

The study will allow the hydrogen infrastructure to be developed to meet the needs of operators, and Gasgrid can contribute to Finland’s industrial operators utilising renewable energy and creating new innovative solutions.

Development projects

We are involved in development projects in the Baltic Sea region as part of the European Hydrogen Backbone initiative. If the projects proceed as planned, the hydrogen infrastructure in the Baltic Sea region could grow to 5,000 km already by 2030. The projects and renewable energy resources in the Baltic Sea region can help to achieve up to 90% of the EU’s domestic clean hydrogen production targets.

In addition, Gasgrid has launched hydrogen infrastructure development projects in the Baltic Sea region in a bid to promote the creation of hydrogen economy investments in Finland.

We currently operate in four development projects in Finland and the Baltic Sea region:

Nordic Hydrogen Route:

is an initiative to connect the Swedish and Finnish hydrogen infrastructures to create an open hydrogen market in the Bothnian Bay region by 2030.

Baltic Sea Hydrogen Collector:

the development project is exploring the possibilities to build an extensive offshore hydrogen pipeline infrastructure connecting Finland, Sweden and Central Europe to enable the production of clean and sustainable hydrogen to meet Europe’s needs.

Nordic-Baltic Hydrogen Corridor:

the project aims to develop a hydrogen infrastructure from Finland to Germany through Estonia, Latvia, Lithuania and Poland by 2030.

Joutseno-Imatra hydrogen infrastructure project:

the project aimed to build Finland’s first hydrogen transmission pipeline to enable the hydrogen generated at Kemira Oyj’s Joutseno plant to be transported to Ovako Imatra Oy Ab’s steel mill in Imatra along Gasgrid’s hydrogen pipeline.

BalticSeaH2:

The project will build the first large-scale, cross-border hydrogen valley in Europe to create and integrated hydrogen economy around the Baltic Sea, enable energy self-sufficiency and minimise carbon emissions from different industrial sectors.

BalticSeaH2 projects will enable 25 demonstration and investment cases to showcase different sectors in the hydrogen economy, adding up to more than €4,000 million in total investments. Potential hydrogen production will each 100,000 tonnes of hydrogen a year by the end of the project. The hydrogen and its derivatives can be utilised or sold by different industries brought together by the project. The total volume of the project is €33 million, with €25 million in funding from the EU. The Clean Hydrogen Partnership supports European hydrogen valley projects with RePowerEU funding from the Commission.

As the Valley Coordinator of the BalticSeaH2 project, Gasgrid Finland is steering the development of the hydrogen economy in the Main Valley between Southern Finland and Estonia. Furthermore, Gasgrid Finland is participating in building the hydrogen valley by promoting its pipeline routing plans in the Main Valley, developing pipeline connection principles for hydrogen producers and consumers and by studying the hydrogen quality requirements of end-users.

Uusimaa industrial hydrogen valley project:

An industrial hydrogen valley would combine infrastructure, renewable hydrogen storage and transmission, serving both hydrogen producers and consumers. In addition, the studies are investigating the utilisation of integration opportunities in the industry. The production of renewable hydrogen generates significant amounts of renewable heat that can be used in district heating.

Research and development project on the possibilities of the hydrogen economy in Finland and the role of energy infrastructure as an enabler of the hydrogen economy:

Neste Corporation, Gasgrid Finland Oy, Helen Oy and Vantaan Energia Oy have jointly launched preliminary studies to develop an industrial hydrogen valley in Uusimaa. The joint project promotes the efforts to make Finland a leading hydrogen economy, which creates investment opportunities for industry and to support Finland and Europe’s carbon neutrality goals.

An industrial hydrogen valley would combine infrastructure, renewable hydrogen storage and transmission, serving both hydrogen producers and consumers. In addition, the studies are investigating the utilisation of integration opportunities in the industry. The production of renewable hydrogen generates significant amounts of renewable heat that can be used in district heating.

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