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Gasgrid opens the valves for the hydrogen economy
The EU’s carbon neutrality goals, especially the phase-out of fossil fuels, are accelerating the transition towards the hydrogen economy. Various countries also have set development plans and goals to move the transition forward.
” Finland offers a springboard for hydrogen companies to global growth. Producers and consumers of hydrogen create demand, and to meet this demand, we are building a nationwide hydrogen network by 2030. However, the growth of the hydrogen economy requires determined development of regulations, supply chains, and practices, as well as cooperation,” says Olli Sipilä, CEO of Gasgrid Finland.
Both off- and onshore wind power, as part of the energy sources for the hydrogen economy, are being constructed at a record pace in Finland. So much so that the grid needs constant reinforcement to meet the increasing electricity production needs.
Diverse production of clean electricity
In addition to wind power, the potential of solar energy in Finland is excellent and its importance is increasing in the coming years. This is traditionally supported by strong hydro- and nuclear power, which will continue to play a significant role. The Finnish government has committed to this change by expediting permits and developing the transmission infrastructure for electricity and hydrogen.
The transition to the hydrogen economy does not only affect the energy system. When hydrogen is produced in large quantities, it is also an excellent raw material for chemical and other heavy industry products. A good example of this is green methanol, which is produced when hydrogen is combined with biobased carbon dioxide from the Finnish wood processing industry.
Hydrogen economy as a part of energy independence
The hydrogen economy is the next logical step in our rapidly electrifying society’s energy system. The hydrogen network complements the electricity grid and provides an alternative for energy transmission and solving energy storage challenges.
Gasgrid Finland plays a key role in building and maintaining the Finnish hydrogen infrastructure.
” When hydrogen producers are waiting for market demand, and users are expecting supply to grow, infrastructure development becomes an accelerating factor,” Sipilä points out.
By 2050, Europe is building an energy infrastructure consisting of three clean energy networks. These networks carry pure electricity, hydrogen, and as clean methane as possible. In Finland, they create a cost-effective, domestic, and reliable energy system.
When hydrogen is combined with carbon dioxide, it produces clean methane. The existing methane network is an important part of the hydrogen economy as the energy market changes due to the growth of variable electricity production and increasing demand for balancing power. In a clean energy system, the role of biogas has also become more prominent.
” In Finland, we have had a diverse energy production based on various solutions for a long time. This has been the strength of Finland and has ensured supply security and energy system stability. In the future, in a clean energy system, hydrogen infrastructure will secure our energy independence.”
Construction of the hydrogen network begins in the coming years
The plans of both hydrogen producers and users require that the infrastructure be ready around 2030.
” We are currently investigating what needs to be done to have a nationwide network by then, which is also connected to the international markets and infrastructures,” says Sipilä.
Gasgrid is conducting a market survey to identify the parties involved in the hydrogen network and the areas where construction should start across Finland. The industrial hydrogen valley under development in the Helsinki region is a good example of ongoing projects. It involves Helen, Neste, Vantaan Energia, and Gasgrid.
Hydrogen, of course, differs from methane, but the technical solutions for gas transmission are largely the same and safe. The hydrogen network to be built in Finland is not the world’s first, as there are already around 5,000 kilometers of hydrogen networks outside industrial areas in Japan, the USA, and the Netherlands.
According to Sipilä, the hydrogen infrastructure projects in different regions will be rapidly connected into a national open network where large amounts of energy are trans- ferred. Investing in infrastructure enables investments in the entire value chain and is a profitable investment as the market grows.
New opportunities for Finnish and global companies
The development in the sector offers significant opportunities for Finnish high-tech companies. There is a high demand for both technology and service providers in the sector worldwide.
” We have good prerequisites to compete in the sector. Now is the time to showcase our expertise and the world’s best conditions for a clean hydrogen economy in the market.”
As the hydrogen takes its place as a central part of the energy system in the coming decades, its transport volumes will be significantly greater than those of the natural gas network.
” It is important to remember that hydrogen is not an energy source but a means of energy transmission and storage. The source of clean hydrogen is pure domestic electricity, obtained, among other sources, from wind and solar power. Hydrogen and its derivatives also significantly improve our energy self-sufficiency and supply security,” Sipilä summarizes. |
Read more at gasgrid.fi/en
