Sweco: Build the hydrogen industry by participating in events, networking and reviewing supply chains
Local actors could promote the potential of the hydrogen industry by increasing their participation in hydrogen events, networking with different actors and reviewing their production chains (e.g., reviewing whether they could substitute raw material chemicals through P2X routes or add new P2X downstream products to their product portfolios). Notably, this is the conclusion of a recent Sweco report titled "Opportunities for the new chemical industry in North Ostrobothnia from a P2X perspective".
The North Ostrobothnia region produces a significant share of Finland's renewable energy from wind power. There are also plans for new wind farms in the region, both onshore and offshore. In addition, plans for hydrogen pipelines along the coast of North Ostrobothnia are essential for clean hydrogen and derived synthetic fuels.
Initially, the production and use of synthetic fuels will be located where carbon dioxide is available and at logistical hubs. For example, synthetic methane can directly replace natural gas uses, so no specific changes to natural gas uses will be necessary.
There is significant potential for exploitation in industry and heavy transport, even from the investments already announced. The North Ostrobothnia region has a large number of industrial companies and critical logistical hubs, such as Oulu and Raahe, both of which also have ports. Significant wind power expansion plans are also a competitive asset.
It is widely recognised that new fuels, such as synthetic fuels and hydrogen, are needed to complement and replace existing transport fuels. In the marine industry, the potential is seen not only in methanol and ammonia but also in pure hydrogen.
There is currently no production of ammonia in Finland. Finland's largest hydrogen production plant is planned for Kokkola, where the main product will be green ammonia in addition to hydrogen. Flexens and KIP Infra Oy have signed a letter of intent for a land lease. More investments of this kind are expected, as ammonia plays an essential role in agriculture.
The chemical industry is also moving towards emission-free production of P2X downstream products, including various bulk chemicals and thus plastics, which will open up new business opportunities. Bulk chemicals include formaldehyde, acetic acid, butanol, isopropanol, etc.
Companies in the region have carbon neutrality targets and significant hydrogen-related projects, such as SSAB's fossil-free steel production. Investments are made mainly on an as-needed basis. In addition to companies' investments, the municipalities and cities of North Ostrobothnia play an essential role in attracting new industrial and energy investments to the region.
Significant plans to increase wind power capacity are a competitive asset for the region.
Even though Finland has only one electricity price zone, it makes sense to try to locate plants close to electricity production. On the other hand, there are discussions about dividing Finland into electricity price zones from time to time, as has been done in Sweden, for example. This would make electricity prices cheaper in those areas than in areas where no electricity is produced.
On the other hand, the discussion on price zones raises awareness of where energy is produced. This can encourage the industry to locate close to clean energy sources and/or increase exports of energy processed with electricity, e.g. hydrogen.
Read the Sweco report here (in Finnish)
