Regional hydrogen network plan completed in North Ostrobothnia
Finland's first regional hydrogen network plan has been completed. The plan, which covers southern North Ostrobothnia, was commissioned by the regional development organisation NIHAK, together with Fingrid and Gasgrid Finland. FCG Finnish Consulting Group carried out the technical implementation of the study.
The regional hydrogen network outlined in the study is linked to Gasgrid's national backbone network and its planning timetable. The work has involved a wide range of local authorities, energy companies and regional project developers.
The study on the implementation of a regional hydrogen network is located in the so-called Oulu South Hydrogen Valley, which offers exceptionally favourable conditions for hydrogen production: abundant renewable energy production, spare capacity in the electricity transmission network, industrial plots suitable for production, excellent logistical location, railway network, and water and wastewater networks sufficient for large industrial projects.
The network has been designed to run along optimal regional routes, considering the hydrogen economy's industrial scale and the market's scaling up, the Fingrid transmission line connections, water and wastewater availability, the rail network and other logistical connections.
The hydrogen network links local potential to national development
Areas of between 20 and 100 hectares have been identified in the region for operators' needs, which are ideally suited for hydrogen production and Power-to-X projects. The adequacy of the region's transmission line connections is also a key factor in implementing investments. The study ensured that the areas suitable for hydrogen production are located close to the Fingrid 400/110 kV substation and can be served by the necessary transmission lines.
The study estimated the investment cost of the regional network to be between €50 and €150 million, with the extent of the cost depending on the extent of the phased implementation. The study shows significant potential for hydrogen production and related investments in the NIHAK area, up to € 3-5 billion.
NIHAK has launched a common position on the development of the hydrogen network in the region and has carried out a regional mapping of suitable sites for hydrogen production, which has highlighted the considerable potential of the region. NIHAK has also identified regional sources of biogenic carbon dioxide and compiled an up-to-date snapshot of the hydrogen plans of the region's energy operators.
First hydrogen projects already licensed in the region
- NIHAK's proactive work to promote a regional hydrogen network has attracted widespread interest. We are national pioneers in this work, and we want to enable hydrogen investments in our region," says Toni Krankkala, CEO of NIHAK.
From Gasgrid's perspective, identifying regional hydrogen players and connecting them to the future transmission network is key tohydrogen economy's industrial scale and the market's scaling up creating a hydrogen market. Development work in the regions will lay the foundations for a nationwide infrastructure that will enable the industrial scale of the hydrogen economy and the scaling up of the market.
- It is great to see how NIHAK in the Oulu South Hydrogen Valley has brought together the regional actors and built capacity for future hydrogen investments. Gasgrid's mission is to enable a hydrogen market to emerge across the country through the hydrogen transmission network - and these regional initiatives play a key role in this," says Heli Virkki, Head of Unit at Gasgrid.
The regional hydrogen network is planned to be implemented in phases, and the next step will be to further explore the operating conditions for a regional hydrogen market, including the business model for the regional hydrogen network, the rules governing the network operator and the search for a suitable network operator. These issues related to the future hydrogen market are currently being examined by the Ministry of Employment and the Economy's Hydrogen Market Working Group, which is tasked with preparing a proposal for rules as part of national legislation.
