Article 1 December 2023

Energy Update: Key takeaways from the final report of Fingrid and Gasgrid on the potential of hydrogen economy in Finland

Finnish electricity and gas transmission system operators, Fingrid and Gasgrid Finland have on 7 November 2023 published the final report of a joint project that commenced in spring 2021, exploring energy development and enabling the growth of the hydrogen economy in Finland. We have summarised the key findings of the report in the article below.

The main objective of Fingrid and Gasgrid's project, was to explore and develop new expertise on the role and potential of energy transmission systems in supporting the hydrogen economy and enabling exports. The project has been a part of the HYGCEL (Hydrogen and Carbon Value Chains in Green Electrification) project package.

According to the key findings of the report the hydrogen economy represents a market worth billions. Finland is well-positioned to become a pioneer in the hydrogen economy, and the establishment of a hydrogen pipeline infrastructure in Finland is technically feasible.

The report further states that:

  • Investments in the hydrogen economy could reach tens of billions of euros by the early 2030s. With investments, Finland has potential to achieve the desired leading position in the European hydrogen economy.
  • As energy production and consumption evolve in different locations, the demand for energy transmission is increasing, underscoring the importance of developing robust transmission infrastructure. The positioning of investments in the hydrogen economy is vital for coordinating the planning of electricity and hydrogen infrastructures and facilitating the execution of substantial energy transmission requirements.
  • The competitiveness of Finnish renewable electricity production, a strong grid and technological expertise are key factors for Finland's ability to become a leading player in the hydrogen economy. Clean hydrogen has a significant role to play in achieving Finland's and Europe's CO2 reduction targets and hydrogen produced from renewable electricity and the products processed from it can develop into a major export industry for Finland. The growth potential is based on the fact that hydrogen produced from renewable or zero-emission electricity will enable the phasing out of fossil resources and fuels in many industrial and transport sectors.
  • The technical implementation of a large-scale hydrogen pipeline infrastructure is possible with the experience gained from methane pipelines, despite no operational experience of larger-scale pipeline transfers in the Nordic countries yet.
  • Much of the regulation focused on this sector is set at the EU level and implemented at the national level. The future legislation on hydrogen transmission is expected to be based on the legislation on natural gas transmission, as it provides the closest reference to the established legislation and regulations on gas transmission. Further, legislation relating to electrical safety, inspection, maintenance and installation must also be taken into account.

Fingrid and Gasgrid Finland continue to cooperate and develop energy infrastructure, with projects underway to develop the transmission grid and hydrogen infrastructure. The full report is available in Finnish on the Gasgrid Finland website. An English version of the report will be published later on.

Should any questions arise, please do not hesitate to be in touch with our Energy practice to discuss the report further!

Similar articles