Developing regional hydrogen and carbon dioxide transfer networks – The time is now
Now, if ever, is the time to develop regional hydrogen and carbon dioxide transfer infrastructure. Recently, many have been following the news regarding the planning and development of the national hydrogen infrastructure, and various stakeholders in Finland are examining the regional opportunities created by the hydrogen transfer network.
Gasgrid has published the first phase plan of the national hydrogen transmission network route, with the estimated transfer network length being over 1000 km. Building the national hydrogen transfer network supports the advancement of several hydrogen and e-fuel production plant projects and helps improve the profitability of plant investments. A comprehensive transfer network can also create new uses for hydrogen, while playing a key role in balancing hydrogen production and consumption.
The hydrogen transfer network supports regional development
At the core of the early development of the national hydrogen network are areas close to the planned national network or ones directly influenced by it. The transfer network project creates new business opportunities from a broader geographical perspective. The employment impact of the construction phase of the hydrogen network is significant and does not cover only traditional actors in the energy sector.
It’s important to consider the possibilities of developing local hydrogen transfer networks, which can attract more industrial-scale hydrogen investments to the regions as part of regional hydrogen ecosystems.
Several industrial parks and hubs in Finland are well prepared for developing hydrogen transmission networks. They play an important role in developing hydrogen transmission infrastructure, especially when the market is still in its early stages. For instance, regional development companies that wish to support the establishment of hydrogen projects in their areas of operation can facilitate and coordinate the development of local hydrogen transmission networks.
Carbon dioxide transfer network and its possibilities
In addition to local hydrogen transmission networks, regional carbon dioxide transmission networks have developed, which may have several functions. The CO2 transport network enables the direct industrial utilisation of CO2 and may be in the process of securing the availability of CO2, e.g. for the e-fuel production plant. Plant operators should strengthen their resilience and consider the possibility that the availability of carbon dioxide and its primary source may change.
Furthermore, the CO2 transfer network could be used to transfer carbon dioxide for long-term storage, highlighting the importance of proximity to ports. By simultaneously promoting both carbon dioxide and hydrogen transfer network projects, essential synergies and cost savings can be achieved, particularly in transfer network planning and implementation phases.
Whether it is a local hydrogen or carbon dioxide transport network project, promoting the project in cooperation with different actors across traditional industry boundaries is a good idea. This will solve some of the profitability challenges related to the projects, as well as reduce operator-specific risk. Positive news regarding investments in hydrogen transfer could act as a needed boost for plant projects that are still in the development phase.
As the hydrogen market develops, investments in the right direction are essential in catalysing the economic growth enabled by the hydrogen transition. The first local transfer network projects have an identifiable demonstration value, which can affect the amount of potential investment support.
