Finland's Potential as a Green Hydrogen Exporter to Central Europe
Key Ideas
  • Finland has the potential to produce 70 TWh of green hydrogen per year by 2050, making it a significant exporter to central Europe.
  • Due to the high proportion of renewable electricity in Finland's power grid, production costs are expected to be low.
  • To realize this potential, a combined onshore and offshore transport infrastructure requiring 12 billion euros investment would be necessary.
  • Germany, with limited potential to produce green hydrogen, is expected to import a large share of its needs from other countries like Finland.
A report by certifier and consultancy DNV, commissioned by gas grid operator Gascade, highlights Finland's high potential to produce green hydrogen for export to central Europe, particularly by 2050. The report estimates an export potential of 70 TWh of hydrogen annually from Finland, approximately 2.1 million tonnes. This is attributed to the country's significant share of renewable electricity, resulting in comparatively low production costs. However, the realization of this potential is contingent on national energy plans. The report emphasizes the need for a substantial investment of 12 billion euros in a comprehensive onshore and offshore transport infrastructure. In contrast, Germany, aiming to integrate green hydrogen into its energy mix, faces challenges in domestic production due to unfavorable renewables conditions. Consequently, Germany is projected to rely heavily on imports, with countries like Finland emerging as key potential suppliers. This signifies a shift towards sustainable energy sources like green hydrogen to complement intermittent renewable energy generation, indicating a positive outlook for Finland's role in the evolving hydrogen market.
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