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)

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

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Text: Sami J. Anteroinen
Images: Otavamedia