7.3.2024 11:00
Current News, Power System

The development of electricity and hydrogen transmission lays the foundation for the clean energy system of the future and the growth of the hydrogen economy

Finland has good conditions to develop into a pioneer in the hydrogen economy, producing 10% of the EU's clean hydrogen. Together with competitive renewable electricity production, electricity and hydrogen transmission infrastructures enable the growth of the hydrogen economy and the achievement of climate goals. Fingrid and Gasgrid Finland investigated in their joint project the possibilities and effects of the hydrogen economy on the Finnish energy system.  

In addition to the significant potential of renewable electricity production, Finland has several factors that enable a leading position in the European hydrogen economy: a strong electricity grid, a skilled workforce, and several companies operating as part of the hydrogen economy value chains. Hydrogen, produced with renewable or emission-free electricity, and its derivatives enable the replacement of fossil fuels, and they can develop into a significant new export industry for Finland. Several dozens of industrial hydrogen projects have been launched in Finland, related to, for example, the production of fossil-free steel and Power-to-X products.  

In the growth of the hydrogen economy, energy transfer and storage play a central role, when weather-dependent electricity production increases significantly and the production and consumption of both electricity and hydrogen are distributed across Finland. Large transfers between production and consumption sites can be carried out cost-effectively with the development of electricity and hydrogen infrastructure, which utilizes both transmission infrastructures taking into account the needs of customers. For example, by utilizing the hydrogen network, hydrogen can be stored, and hydrogen production can be located closer to electricity production. In this case energy can be transmitted as hydrogen to its use and further processing facilities. 

"The growth of the hydrogen economy requires a strong energy transmission infrastructure and its efficient utilization. Together, the electricity and hydrogen transmission infrastructures enable the development of a clean and competitive energy system," says Mikko Heikkilä, Fingrid's Head of Strategic Grid Planning. 

Gasgrid Finland and Fingrid promote comprehensive development of energy infrastructure in line with future needs in order to promote Finland's competitiveness. In addition to energy infrastructure, it is important to promote the realization of investments in renewable energy production and hydrogen economy value chains in Finland. 

"The realization of the investments improves Finland's energy self-sufficiency and security and creates indirect well-being for the whole of Finland through the growth of new high value products and the export industry. In addition, the construction of international hydrogen transmission connections expands the hydrogen market and creates new business opportunities for operators at different stages of the hydrogen value chains. In this way, Finland can achieve its desired leading position in European hydrogen economy", says Sara Kärki, Gasgrid Finland's Senior Vice President of Hydrogen Development. 

The joint project between Gasgrid Finland and Fingrid started in spring 2021. Now the final report of this project is available and can be accessed via the link below. Gasgrid Finland and Fingrid continue their important cooperation to develop Finland's energy system and enable the growth of Finland's hydrogen economy. 

Link to the Final report below: Energy transmission networks as enablers of the hydrogen economy and a clean energy system 

Additional information:  

Fingrid Oyj   

Mikko Heikkilä, Head of Strategic Grid Planning, mikko.heikkila(a)fingrid.fi, tel +358 40 637 4720   

Gasgrid Finland Oy
Sara Kärki, Senior Vice President of Hydrogen Development, sara.karki(a)gasgrid.fi, tel +358 40 158 1722 

Venla Saarela, Development Manager, venla.saarela(a)gasgrid.fi, tel +358 50 305 3504   


Final report: Energy transmission infrastructures as enablers of the hydrogen economy and clean energy system >

Presentation on the hydrogen economy >

In spring 2021, Gasgrid Finland, the Finnish gas transmission system operator, and Fingrid, the Finnish electricity transmission system operator, started a cooperation aimed at exploring the potential of the hydrogen economy in Finland, as well as the role of energy infrastructure in enabling the hydrogen economy. The cooperation continues concretely in Gasgrid and Fingrid's joint research and development project, which is implemented as part of the broader HYGCEL research project consortium consisting of several Finnish companies and research institutes. On 28 October 2021, Business Finland granted support for both the Fingrid-Gasgrid joint project and the broader entity. 

Gasgrid Finland Oy is a Finnish state-owned company and transmission system operator with system responsibility. We offer our customers safe, reliable and cost-efficient transmission of gases. We actively develop our transmission platform, services and the gas market in a customer-oriented manner to promote the carbon-neutral energy and raw material system of the future. Find out more: www.gasgrid.fi 

Fingrid is Finland’s transmission system operator. We secure reliable electricity for our customers and society, and we shape the clean and market-oriented electricity system of the future. Fingrid delivers. Responsibly. www.fingrid.fi 

Previous releases and reports: 

Media release of the joint project: Gasgrid and Fingrid launch a joint research project to enable the hydrogen economy 

Intermediate report March 2022: An intermediate report of a joint hydrogen economy study presents the opportunities that transmission infrastructure enables for the future energy system 

Draft scenarios June 2022: Gasgrid Finland and Fingrid request feedback from stakeholders on the draft scenarios of their joint project 

Scenario report May 2023: Scenario work of Fingrid’s and Gasgrid Finland’s joint project completed – Finland to become a major producer of clean hydrogen gas and hydrogen downstream products