Finland invests in renewable hydrogen
The RePowerEu sets ambitious goals for developing the hydrogen economy within the EU. Finland has excellent conditions to make a decisive contribution. Hydrogen plays an essential role in achieving the national target of achieving climate neutrality by 2035. In addition, Finland aims at becoming an important export country.
A key to this is the low-cost Finnish wind power, which enables the production of renewable hydrogen at very competitive terms. Despite the rapid growth in recent years, there is still enormous potential for future expansion, both onshore and offshore.
The European Hydrogen Backbone Initiative estimates that a total of 127 TWh of green hydrogen can be produced in Finland, Sweden and the Baltic countries by 2030. This corresponds to about 20% of the RePowerEU's overall target and 38% of the intended production within the EU. At the national level, there are also far more optimistic estimates.
To exploit this potential, Finland is making significant efforts to create a hydrogen infrastructure. This includes the construction of a joint pipeline with Sweden (the “Nordic Hydrogen Route”), through which green hydrogen will be transported on a large scale from areas with high wind power production to industrial customers. The pipeline is planned to be operational by 2030. Over the longer term, an expansion of via the Baltic countries and Poland all the way to Germany is planned.
A wide-ranging cooperation between commercial enterprises and other stakeholders aims at developing the economic and regulatory framework conditions as holistically and effectively as possible. This includes a joint project of the TSOs in the gas and electricity sector, the aim of which is to facilitate sector integration between hydrogen, gas, and electricity transmission.
Against this background, Finland is likely to be an interesting market also for foreign companies in the sector.