Gasgrid and Fingrid draft three scenarios for Finnish hydrogen economy

Gasgrid Finland, a Finnish state-owned company and transmission system operator, and compatriot transmission system operator Fingrid have drafted three different scenarios in the joint project exploring the possibilities of the hydrogen economy and analysing its effects on the Finnish energy system.

The joint project started in the spring of 2021 and now three different scenarios have been created to examine alternative development paths for hydrogen production and consumption as well as the role of energy transfer as an enabler of the development.

In these scenarios, Finland is expected to develop into a significant producer of clean hydrogen and/or Power-to-X products. In all of them, hydrogen production will become the largest user of electricity, while wind power will be the number one form of electricity production, Gasgrid explains.

According to the scenarios, a hydrogen transmission network that enables exports of clean hydrogen gas to Northern Sweden and/or Central Europe will be built in Finland. In all scenarios and in line with the Finnish government’s resolution, Finland’s market share will increase to more than 10% of clean hydrogen produced in the EU by 2030.

“Achieving Finland’s hydrogen target requires substantial investments to both electricity and hydrogen networks. Leading position in the European hydrogen economy requires streamlining permitting processes of transmission networks, and strong political and social support for projects,” said Fingrid’s Head of Strategic Grid Planning Mikko Heikkilä.

“The hydrogen network will connect producers and consumers not only within Finland but across Europe. Gasgrid is strongly involved in a number of hydrogen infrastructure development projects around the Baltic Sea. With the projects, Gasgrid also strengthens Finland’s pioneering role in the energy future and its attractiveness as a candidate for industrial investments,” added Sara Kärki, Gasgrid Finland’s Senior Vice President of Hydrogen Development.

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.