Finnish Hydrogen Industry Strengthens – Despite Damning Report
Following a critical report published via SEI, the public opinion on the Baltic-Finnish hydrogen industry will likely be negative. Authors’ Gowtham Muthukamaran and Javad Keypour noted that within the region there was an “urgent need for decarbonisation.”
It is important to understand that the report primarily criticises the European Union: Their lack of attention and funding towards clean energy within the Baltic-Scandi states. However, the report perhaps understates the many positive steps that local energy companies have taken in expanding and innovating the hydrogen sector. A recent example can be shown in:
Helen’s all-new (and first) green hydrogen plant in Helsinki
Finnish energy company ‘Helen’ has selected the Swedish engineering company ‘Sweco’ to conduct the basic engineering of the 3H2 – Helsinki Hydrogen Hub in Vuosaari. Although being their first hydrogen production project, Helen aims to create the necessary capabilities for large-scale Power-to-X production. The 3H2 project aims to reduce carbon dioxide emissions in transport and district heat production by up to 70,000 tons over the plant’s 20-year lifecycle.
3H2 – Helsinki Hydrogen Hub is the first project of its kind, combining zero emissions with the four uses of hydrogen: electricity, transport, heating, and energy storage. A unique feature of the plant is the capability to convert the hydrogen back into electricity with a fuel cell (Power-to-H2-to-Power) and in doing that balance the electricity grid.
Sari Mannonen, Senior Vice President, Solutions and Portfolio Development at Helen said:
“We are excited to enter the design phase of the 3H2 – Helsinki Hydrogen Hub together with Sweco. This is Helen’s first Power-to-X project and part of our Clean-Tech Hub vision. The emission reductions enabled the project will be significant and contribute to both Helen’s and Finland’s carbon neutrality targets.”
The green hydrogen (produced via wind and solar) will enable emission reductions, especially in heavy road transport. The first hydrogen refuelling station in the capital area is also planned on the same site, and it will serve heavy transport after the start of hydrogen production and distribution in 2024. Hydrogen can also be supplied in containers for industrial needs.
All waste heat generated by the production process will be recovered and utilised via a heat pump in Helen’s district heating network, which raises the total efficiency of the plant to almost 90 per cent. The plant will be optimised using an automated artificial intelligence system.
Helen has applied for investment support for the project from the Ministry of Economic Affairs and Employment for new energy technology and large demonstration projects, and its implementation is subject to a positive subsidy and investment decision.
“The hydrogen economy is an opportunity for Finland, as Finland has a relatively low-carbon electricity production mix and a strong power grid. In addition, Finland has huge potential for additional wind power, which could be used for the production of hydrogen and eFuels both for domestic demand and export. We have a real opportunity to be pioneers and speed up the energy transition and sustainable low-emission solutions”, commented Mia Andelin, Chief Sustainability Officer at Sweco.
Lack of investment towards decarbonisation within Finland
A criticism within the SEI report was the lack of investment towards decarbonisation in Finland and the Baltic countries. Writers Muthukumaran and Keypour strongly stated:
“Invest now to reshape the energy landscape or pay later in severe environmental and geopolitical costs.”
Their call-to-action article seems to be knocking at an open door, with the European Union previously granting 1.9 million EUR to Finnish businesses for constructing recharging points for electric cars in the Baltic States and EUR 4.2 million for constructing hydrogen charging points in Finland.
According to the article, the key lies in continued and increased investment with “no-regret” policies and investments directly targeting clean energy production and storage.
Byline by Sonny Riddell
