Gasgrid advances Finland’s first hydrogen transmission network project

State-owned transmission system operator Gasgrid Finland is progressing its hydrogen transfer infrastructure demonstration project with a €9.5 million grant for project design and potential construction.

The demonstration project aims to construct a pipeline to enable the hydrogen generated at Kemira Oyj’s Joutseno plant to be transported to Ovako’s matra Oy Ab’s steel mill in Imatra along Gasgrid’s hydrogen pipeline.

The project has been granted €9.5 million in RRF energy investment support under the EU’s NextGenerationEU funding instrument.

If implemented, the project would be Finland’s first step towards national and international markets based on hydrogen enabled by a hydrogen infrastructure.

The demonstration project will enable the implementation of Finland’s first full hydrogen value chain from electricity through the chemical industry by-product hydrogen to green steel industry end products and, consequently, will promote the development of Finland’s energy and raw materials system.

“We are delighted with the funding decision for the hydrogen transmission project. Ovako already now generates 95% less carbon dioxide emissions in steelmaking than the steel industry average. Besides this, since January 2022 we have counterbalanced the remaining emissions through carbon offsets. The utilisation of the new technology and the opportunity to use hydrogen as a fuel going forward will support Ovako’s zero carbon goals”, said Klaus Enwald, President and CEO, Ovako Imatra Oy Ab.

“Under the recent resolution adopted by the Government, Finland’s goal is to become the European leader in the hydrogen economy. Hydrogen transmission and storage have a key role in enabling the hydrogen economy. The project will help us to explore the possibilities to create a scalable and replicable model for a pipeline infrastructure”, said Sara Kärki, Head of Strategic Analysis and RDI at Gasgrid Finland Oy.

Gasgrid has been tasked with developing the national hydrogen network and international hydrogen infrastructure and hydrogen market to support Finland’s energy independence, economy and industrial investments. Gasgrid Vetyverkot Oy has been established for this purpose.

To reach these goals, Gasgrid participates actively in the development of a Finnish and pan-European hydrogen infrastructure and market in the European Hydrogen Backbone (EHB) group. The company is also involved in the Nordic Hydrogen Route project, to develop the hydrogen infrastructure in the Bothnia Bay area.

Besides these, Gasgrid is developing hydrogen networks in the Baltic Sea area in the Baltic Sea Hydrogen Collector project as well as in the Nordic-Baltic Hydrogen Corridor project. The goal of the projects is to create optimal conditions for industrial investment in Finland, especially from the perspective of the further processing of hydrogen.

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