Six reasons why Europe needs BotH₂nia Hydrogen Valley
The BotH₂nia association is applying for official hydrogen valley status for BotH₂nia Hydrogen Valley through the EU’s Clean Hydrogen Partnership. The proposed valley, situated in the northern Baltic Sea region, covers five of Finland’s coastal NUTS3 areas: Satakunta, Ostrobothnia, Central Ostrobothnia, Northern Ostrobothnia and Sea Lapland.
There are six compelling reasons why Europe needs the BotH₂nia Hydrogen Valley.
- The Finnish west coast offers abundant and affordable renewable energy.
- The valley can produce a substantial amount of clean hydrogen.
- BotH2nia Hydrogen Valley covers broad value chains.
- Several promising projects demonstrate feasibility.
- We attract large-scale investments.
- BotH2nia Hydrogen Valley supports a variety of end uses.
The Finnish west coast offers abundant and affordable renewable energy
Finnish electricity is among the cheapest in Europe. The price of electricity for non-household customers was the lowest in the EU in Finland (€0.0928 per kWh) in the first half of 2024.
The proposed valley currently produces over two-thirds of Finland's wind power, accounting for one-third of the nation’s total electricity generation. Planned expansions in wind and solar projects are expected to significantly boost renewable electricity output beyond the current 8,000 MWh in the near future.
Finland's national electricity grid is robust throughout the country, particularly along the renewable-energy-producing, industrialized western coast. By the early 2030s, the national hydrogen infrastructure is also set to trace this coastline through BotH₂nia Hydrogen Valley areas.
The valley can produce a substantial amount of clean hydrogen
By 2030, the region is projected to produce almost 100,000 tonnes of clean hydrogen, with most hydrogen production in BotH₂nia Hydrogen Valley powered by electrolysis and renewable electricity. The area also hosts an innovative pilot plant that splits biomethane to produce hydrogen and pure carbon with zero CO₂ emissions.
BotH₂nia Hydrogen Valley offers an ideal setting for producing e-fuels and green chemicals. Carbon capture from Finland's significant forestry sector enables the production of green hydrogen derivatives, further supporting a sustainable energy ecosystem.
BotH²nia Hydrogen Valley covers broad value chains
BotH₂nia Hydrogen Valley encompasses comprehensive value chains, covering all stages from hydrogen production to storage, transport, and offtake.
Existing hydrogen plants in the region not only produce pure hydrogen but also e-methane. Plans are underway to establish six additional value chains by 2035, supporting hydrogen use in diverse applications, such as e-fuels and steel reduction.
Notably, the region is home to Wärtsilä, the only maritime and power plant combustion engine manufacturer currently offering ammonium- and hydrogen-compatible multi-fuel engines, enhancing the Valley's leadership in green technology solutions.
Several promising projects demonstrate feasibility
In 2024, BotH₂nia Hydrogen Valley saw the commissioning of two significant hydrogen production facilities:
- Hycamite's methane-splitting plant: Located in Kokkola, Hycamite inaugurated Europe's largest methane-splitting facility. This plant utilizes thermo-catalytic decomposition to convert biomethane into low-carbon hydrogen and solid carbon without CO₂ emissions. Once fully operational, it produces 2,000 tonnes of hydrogen and 6,000 tonnes of high-quality carbon annually.
- P2X Solutions' green hydrogen and e-methane production: In Harjavalta, P2X Solutions commissioned Finland's first industrial-scale green hydrogen and synthetic methane production plant. At the facility, a 20 MW electrolyser produces green hydrogen using renewable electricity, and a methanation unit supplied by Q Power produces renewable synthetic methane.
Additionally, Woikoski has been producing green hydrogen in smaller quantities for industrial use since 2014, continuing a legacy of hydrogen production that began in 1913.
Koppö Energy plans to construct a synthetic methane production facility in Kristinestad. This plant will produce green hydrogen and combine it with carbon dioxide captured from WestEnergy, with industrial production slated to begin in early 2026.
Furthermore, five additional value chains are planned for commissioning before 2035. These will encompass various hydrogen applications, including e-fuels and steel reduction.
To support these developments, the state-owned Gasgrid Finland is expected to make an investment decision by early 2026 regarding a hydrogen infrastructure that will traverse BotH2nia Hydrogen Valley, enhancing infrastructure for hydrogen transport and distribution both nationally and internationally.
We attract large-scale investments
BotH₂nia Hydrogen Valley is set to attract over €3 billion in investments by 2030, underscoring its pivotal role in advancing green hydrogen and e-fuel production. Initial greenfield investments in the first two commissioned units, Hycamite and P2X Solutions, totalled approximately €140 million. The forthcoming Koppö Energy facility, slated for operation by early 2026, is projected to require an investment of around €450 million. Collectively, the planned hydrogen and e-fuel manufacturing units are expected to represent investments of about €1 billion over the next decade.
Additionally, SSAB's Raahe steel mill is planning a substantial green hydrogen conversion project, estimated at €2 billion.
While the total investment for the national hydrogen infrastructure has not been disclosed, the first investment decision is anticipated in early 2026. Notably, these pipelines have been included on the European Commission's Projects of Common Interest (PCI) list as of November 28, 2023, highlighting their strategic importance in the EU's energy infrastructure.
The BotH₂nia Hydrogen Valley supports a variety of end uses
The eight hydrogen value chains currently listed in BotH₂nia Hydrogen Valley are expected to be operational by 2035, producing hydrogen for a range of applications, including:
- Industrial processes: Hydrogen will be utilized in various inorganic chemistry industrial processes, contributing to cleaner manufacturing practices.
- E-Methane and e-ammonium production: Hydrogen will be key in producing e-methane and e-ammonium, which can be used as sustainable fuels for land transport, maritime applications, and aviation.
- Steel production: Hydrogen reduction methods will be employed in one of northern Europe's largest steel mills, significantly reducing carbon emissions in the steelmaking process.
Additionally, the projects will capitalize on excess heat generated during hydrogen production, repurposing it for heating during the colder months. This not only enhances the viability and economic returns of the investments but also contributes to a more efficient and sustainable energy ecosystem in the region.
Download the BotH₂nia Hydrogen Valley flyer here
