3.2.3 Finland
In Finland, many large-scale hydrogen production projects are currently under development. In the majority of these projects, hydrogen produced via electrolysis is utilised on-site to produce e-fuels and chemicals such as methane, methanol and ammonia, as well as to produce green steel or to be used directly in the transport sector. Although less common, hydrogen exports via transmission pipelines, replacing fossil hydrogen in existing industries, electricity grid balancing and high-temperature heat production are also identified as hydrogen end-uses in the projects.
Sector integration is an important element of Finland’s hydrogen production projects. Many of the projects, especially the most advanced ones, incorporate the use of by-product heat from electrolysis for district heating, thereby reducing the use of combustion-based alternatives. As a result, energy companies are often involved in hydrogen projects in Finland, alongside the project developers. Many project developers in Finland, such as P2X Solutions, Ren-Gas Oy, Green North Energy and Plug Power have multiple hydrogen projects in the pipeline across different regions of the country.
The projects with estimated commissioning years are planned to be operational by the 2030s. However, the publicly announced timelines and project stages may not be up-to-date and may involve great uncertainties.
In terms of hydrogen development from a geographical perspective, hydrogen projects in Finland are mainly concentrated in the coastal and southern regions of the country. Several large-scale hydrogen production plans are planned along the west coast, driven by the region’s substantial wind power potential. The region of Ostrobothnia leads in both installed and planned onshore wind power capacities in the country. Offshore wind power production with significant capacities is also planned for this area. Additionally, the Nordic Hydrogen Route, a cross-border hydrogen transmission pipeline infrastructure, is set to run around the Bothnian Bay between northern Finland and Sweden, following the west coast and facilitating investment plans. The western coastline also has large-scale biogenic carbon dioxide sources from e.g. the pulp industry in Oulu and Kemi, which could support projects utilising hydrogen in e-fuel production. Furthermore, Finland’s only primary steel production plant, located in Raahe, could become a major green hydrogen consumer if the reduction of iron ore is implemented at the site. This demand could occur when the facility is decarbonised, likely in the 2030s. The coastal area is also home to ports and harbours that support plans for exportable hydrogen derivates, such as ammonia. In fact, all green ammonia plants planned in Finland are in the coastal areas, specifically in Kemi, Kokkola, Pori and Naantali.
Southern Finland is another region with numerous hydrogen-related initiatives. The region is the focus area of the EU-funded BalticSeaH2 project, a consortium of 40 partners from nine Baltic Sea countries, which received funding under the Horizon Europe large-scale hydrogen valley call of 2022. The aim of the project is to build the first significant, cross-border hydrogen valley in Europe. The project’s main hydrogen valley is located between southern Finland and Estonia, with replication valleys planned across the Baltic Sea countries. The project includes dozens of individual investments by the partner companies, demonstrating hydrogen economy, including hydrogen production, distribution, storage and end-use (industry, transport, energy, market) throughout the value chain. The investments are published once the companies finalise their investment plans. The hydrogen production potential is projected to exceed 100 ktpa by the end of the project in 2028. Several hydrogen projects led by the consortium partners (P2X Solutions, Helen, Green North Energy and Neste) have already been announced in southern Finland and are described later in this document, as they represent some of the most advanced hydrogen projects in Finland as of today.
Southeast Finland is also a promising region from a hydrogen perspective, with several initiatives ongoing. The region has large point sources of biogenic carbon dioxide from its energy sector and pulp and paper industries. Notably, according to the mapping carried out by the present project, the largest hydrogen production projects in the region by estimated capacity, such as the projects by P2X Solutions in Joensuu and Ren-Gas in Kotka and Mikkeli, are related to hydrogen production for on-site e-fuel production together with a local carbon dioxide source. In addition to significant point sources of biogenic carbon dioxide, the renewable energy potential in southeast and eastern Finland is promising. However, the military air surveillance radars limit wind power construction in the region. To address this, in February 2024, the Ministry of Economic Affairs and Employment and the Ministry of Defence appointed a working group to explore ways to coordinate territorial surveillance and wind power construction in eastern Finland.
Currently, the only hydrogen project in Finland that meets the hydrogen valley criteria outlined in this study, the 3H2 – Helsinki Hydrogen Hub, is in the capital region and is described in more detail below. Several other hydrogen projects have the potential to meet these criteria as they progress beyond the early planning stages or expand their hydrogen supply to multiple end-use sectors. Presently, most hydrogen production projects focus on the on-site production of hydrogen derivatives, categorised as serving a single end-use sector (industry), although products like synthetic methane could benefit both industry and transport. These projects are classified as hydrogen hotspots, and the most advanced among them, based on public announcements, are also described below.