Unleashing the Baltic Sea's Hydrogen Potential for Europe's Energy Independence
Key Ideas
  • DNV study reveals the Baltic Sea region's substantial potential for low-cost green hydrogen production, aligning with EU's climate goals.
  • Finland emerges as a key player with high renewable energy proportion, projected to export 70 TWh/year of hydrogen by 2050.
  • Hydrogen production costs in Finland estimated at €2.5/kg, with favorable pipeline transport across the Baltic Sea, making the total system cost €3/kg.
  • GASCADE's analysis shows that hydrogen transportation costs to Germany could be reduced by utilizing a combined onshore and offshore pipeline infrastructure.
A recent study by DNV has shed light on the significant potential of the Baltic Sea region, along with the North Sea, for producing cost-effective green hydrogen. This aligns perfectly with Europe's ambitious plan to diversify its energy sources and achieve independence. The study, titled 'Potential for a Baltic Hydrogen Offshore Backbone,' underscores the need for up to 2,000 TWh of climate-neutral hydrogen by 2050, a goal set by the EU. Onshore wind farms in the Baltic Sea region are poised to play a crucial role in meeting this demand. The research indicates that while the North Sea offers great potential for offshore hydrogen production, onshore production in the Baltic Sea region could be more beneficial for neighboring countries. Finland stands out as a significant contender in the hydrogen market, with the capacity to export 70 TWh per year by 2050, equivalent to approximately 2.1 million tons of hydrogen. Thanks to its high proportion of renewable electricity and meeting RED III criteria, Finland can produce hydrogen at a competitive cost of €2.5 per kilogram. Moreover, the study emphasizes the advantage of utilizing the Baltic Sea for pipeline transport, leading to a total system cost of around €3 per kilogram of green hydrogen. This cost efficiency positions hydrogen as a viable alternative to derivatives like ammonia. GASCADE's analysis suggests that transporting hydrogen to Germany through this network could reduce costs significantly, benefiting both countries economically. The study also highlights the importance of creating a robust infrastructure for transporting hydrogen. A proposed combined onshore and offshore pipeline infrastructure is estimated to cost €12 billion. This system, connecting Finland to Germany, could further enhance Europe's energy security and help achieve the hydrogen import and distribution targets. The 'Flow—making hydrogen happen' project in Germany, which is set to commence operations in 2025, is a pivotal step in this direction, indicating a promising future for green hydrogen in the region.
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