The regional development organization NIHAK, operating in the southern part of Northern Ostrobothnia, has taken a significant step toward the concrete realization of the hydrogen economy in Finland. The country’s first regional hydrogen network plan, developed in cooperation with Fingrid and Gasgrid, has now been completed. The technical implementation of the study was carried out by FCG Finnish Consulting Group.
NIHAK sees the regional hydrogen network outlined in the study as part of Gasgrid’s national backbone network and aligned with its planning schedule. The work involved broad participation from municipalities, energy companies, and project developers operating in the region. The feasibility study focuses on the so-called Oulu South Hydrogen Valley, which offers exceptionally favorable conditions for hydrogen production: abundant renewable energy generation, available electricity transmission capacity, industrial plots suitable for production, excellent logistics infrastructure including a railway network, and sufficient water and wastewater infrastructure for large-scale industrial projects.
The network is planned along routes optimal for the region, taking into account Fingrid’s power line connections, access to water and wastewater, the railway network, and other logistical links.
Connecting Local Potential with National Development
Areas ranging from 20 to 100 hectares have been mapped out to meet the needs of operators and are deemed highly suitable for hydrogen production and Power-to-X projects. Ensuring adequate electricity transmission capacity is also critical to enabling investments. The study verified that the required power lines can be routed to hydrogen production areas from Fingrid’s 400/110 kV substations.
According to the study commissioned by NIHAK, the investment cost for the regional hydrogen network is estimated at 50–150 million, depending on the scale of phased implementation. Based on the findings, NIHAK’s operating area holds significant potential for hydrogen production and related investments, estimated at 3–5 billion.
A Local Pioneer
NIHAK has long been a proactive leader in developing the hydrogen economy and promoting the comprehensive construction of hydrogen infrastructure. It has initiated a joint regional statement in favor of hydrogen network development and conducted a regional survey of suitable hydrogen production sites, highlighting the area’s considerable potential. Additionally, NIHAK has investigated local sources of biogenic carbon dioxide and compiled an up-to-date overview of hydrogen-related plans by local energy sector stakeholders.
As a result of these efforts, NIHAK’s region is attracting growing interest from both domestic and international hydrogen investors, and the first local hydrogen projects have already progressed to the permitting phase.
“The proactive work NIHAK has done to promote the regional hydrogen network has generated broad interest. We are national frontrunners in this area, and we want to ensure that hydrogen economy investments are realized specifically in our region,” says NIHAK CEO Toni Krankkala.
From Gasgrid’s perspective, identifying and connecting regional hydrogen players to the upcoming transmission network is a key part of establishing a hydrogen market. The development work being done in regions lays the foundation for a nationwide infrastructure that enables the industrial-scale realization of the hydrogen economy and market scalability.
“It is great to see how NIHAK has brought regional players together in the Oulu South Hydrogen Valley and built readiness for future hydrogen investments. Gasgrid’s role is to enable the emergence of the hydrogen market across the country through a hydrogen transmission network – and these regional initiatives play a central role in that,” says Heli Virkki, Unit Manager at Gasgrid.
The regional hydrogen network is planned to be implemented in phases. The next step involves a more detailed assessment of the operational conditions for the regional hydrogen market, including the development of a business model for the regional hydrogen network, identifying the regulatory framework governing the network operator’s activities, and the search for a suitable network operator. These issues related to the emerging hydrogen market are currently being examined by the Ministry of Economic Affairs and Employment’s hydrogen market working group, which is tasked with preparing a regulatory proposal as part of national legislation.
More Information:
NIHAK, CEO Toni Krankkala
toni.krankkala@nihak.fi, tel. +358 50 327 7254
Gasgrid, Unit Manager, Heli Virkki
heli.virkki@gasgrid.fi, tel. +358 50 564 2426
Fingrid Oy, Customer Manager, Antero Reilander
antero.reilander@fingrid.fi, tel. +358 40 5195825
FCG Finnish Consulting Group Oy, Business Director Tero Pyrhönen
tero.pyrhonen@fcg.fi, tel. +358 40 821 4538
