Finnish national TSO for gas Gasgrid Finland to develop a national hydrogen infrastructure

Source: press release, 23 June 2022

Gasgrid Finland’s CEO, Olli Sipilä
Gasgrid Finland’s CEO, Olli Sipilä (photo: Gasgrid Finland)

The Finnish Government has decided to mandate state-owned Gasgrid Finland to promote development of the national hydrogen infrastructure, international infrastructure cooperation and the hydrogen market in the Baltic Sea Region as soon as possible. Gasgrid Finland has been responsible for ensuring gas transmission in Finland. In future, the company’s strategic interest will include developing the transmission of hydrogen and its gaseous derivatives and hydrogen transmission infrastructure as well as safeguarding their smooth and disruption-free operation. A subsidiary, VetyVerkko, will be founded by Gasgrid for this purpose.

The responsibility for development will allow Gasgrid Finland to fast track the development it has already started and projects already underway such as the Nordic Hydrogen Route – Bothnian Bay. The Nordic Hydrogen Route is a cross-border project between Finland and Sweden aimed at building a network of pipelines in the Bothnia Bay region. To promote the development of a hydrogen economy, Gasgrid Finland has additionally launched a demonstration project on hydrogen transmission aimed at utilising Kemira’s by-product hydrogen at Ovako’s Imatra mill. The project will generate new know-how and conditions to serve hydrogen economy development more broadly.

“Finland has excellent wind power resources, highly competitive electricity price and stable social structure. Advanced energy networks will enable Finland’s competitiveness on the global market in the creation of value chains, investments, and jobs in the hydrogen economy,” says Gasgrid Finland’s CEO Olli Sipilä.

“The latest European Hydrogen Backbone (EHB) analysis shows that the potential of the region of Finland, Sweden and the Baltic countries, i.e., the supply corridor D, is significant. The potential market size of the region is estimated to be 127 TWh per year already in 2030, which corresponds to about 20% of REPowerEU targets for hydrogen and about 38% of the target of domestic hydrogen produced in EU. Hydrogen economy is therefore a very significant opportunity to the countries around the Baltic Sea with great renewable energy resources, space, and forerunner position in development of sustainable technology solutions,” says Gasgrid Finland’s Sara Kärki, Head of Strategic Analysis & RDI.

In future, Finland may play an important role both as a producer of hydrogen and as a country exporting hydrogen.

“Gasgrid’s hydrogen business is an excellent continuation of the Government’s determined energy policy. Hydrogen-based solutions enable us to reduce both emissions and the price of energy. At the same time, we are also improving our energy self-sufficiency. This opening will put Finland at the forefront of the hydrogen economy,” says Minister of Finance Annika Saarikko, who is responsible for Gasgrid’s ownership steering.