Hydrogen – a small but powerful atom

Hydrogen technology is expected to be a great and powerful balancer of the electricity system in both storage and pricing. Where are we with hydrogen-based technologies now? What will be the role of hydrogen in the future?

Hydrogen appeared in the world very dramatically, 379,000 years after the Big Bang. As the hot, dense plasma of protons, electrons and photons in the universe began to cool and expand, electrons and protons gathered to form atoms, for example, helium and hydrogen. There is more hydrogen in the universe than any other element, even in humans 10 per cent of the total weight, or as much as 7 kilograms of the mass of a 70-kilogram person.

Hydrogen is now being discussed in an unprecedented way. Hydrogen will revolutionise the energy economy! The hydrogen economy is coming – is Finland ready? Basically, we have always lived in a hydrogen economy. Already in the 1970s, hydrogen was anticipated to be a solution to the oil crisis, but now hydrogen-based technologies can play a crucial role in achieving carbon neutrality goals. Due to climate change and the energy crisis, humanity needs new, more sustainable energy solutions. So, what is hydrogen for?

Energy storage, synthetic fuels and fertilizers

Sara Kärki, Director of Hydrogen Development at the gas transmission system operator Gasgrid, says that hydrogen can be used, for example, as a fuel for the steel industry, directly as a process raw material, in the manufacture of raw materials for plastics or fertilisers, for example. Hydrogen and carbon extracted from carbon dioxide are used to produce synthetic fuels: they are turned into synthetic methane or methanol, or they can be further processed into petrol or diesel. If we want to decarbonise sectors such as maritime transport or the chemical industry, which cannot be directly electrified, hydrogen will come to the rescue. 

There are no single winning hydrogen solutions, but hydrogen is a joint effort of many actors. Hydrogen is not a source of energy, but an energy carrier that plays a significant role in electrification, more precisely in electricity storage. Electrification refers to a change in which the production of energy, heat and materials switches from fossil fuels to electricity as an energy source. With hydrogen, existing wind resources can be better utilised and forests do not need to be filled with power plants.

Projects must move forward

In May 2022, the European Commission announced the RePower EU plan, which aims to phase out fossil fuel imports from Russia. The Commission set the EU’s target of producing 10 million tonnes of hydrogen from renewable energy sources in the EU by 2030 and a further 10 million tonnes of hydrogen imported into the EU. According to Kärki, ambitious targets for hydrogen have accelerated its development. 

So far, P2X Solutions’ hydrogen plant in Harjavalta is the only project in Finland for which an investment decision has been made.

– In order for Finland to be an important player in the hydrogen market, the first projects must be made to proceed, says Tuomo Rinne, Business Development Director at P2X.

– We must learn as we do. Along with development projects and theses, practical knowledge is taken to educational institutions, and then methods and equipment can be developed when research data on installed production plants is obtained.

Kärki’s employer, the state-owned company Gasgrid Finland, has together with Nordion Energi launched a cross-border joint project called Nordic Hydrogen Route and, together with other transmission system operators and industrial operators in the Baltic Sea region, the Nordic-Baltic Hydrogen Corridor and Baltic Sea Hydrogen Collector projects. The projects aim to boost the hydrogen market in the Baltic Sea region and promote the investment environment. The companies aim to build a pipeline network that efficiently transports and stores energy from producers to consumers, ensuring access to an open, reliable and safe hydrogen market. 

Sustainable growth for Finland, international significance for Europe

According to Kärki, Finland’s huge clean energy resources represent a great opportunity to reduce emissions and create sustainable growth through the hydrogen economy.

– Finland has good resources, space and water available. Wind and solar power are competitive on a European scale. Finland is one of the most ambitious in terms of climate targets.

Finland also has strong expertise in automation and digitalisation, which is important in future energy systems. No single actor can implement the renewable energy transition alone. We need to pull together (sic!). According to Kärki, the transformation requires that education is in place in Finland and that land use, permits and legal processes are smooth.

Hydrogen is a globally traded energy product that is traded – not in dollars, like oil – but in euros. It is therefore the first energy product in which Europe can play an international role in its development and trade.

P2X believes that by 2050, green hydrogen could cover up to 24% of global energy demand (~4% in 2020). International sales of clean hydrogen are estimated to be EUR 630 billion in 2050. The views are based on Goldman Sachs’ 2020 hydrogen report.

Hydrogen pierces society – a great opportunity

The xylitol found in our everyday lozenge boxes is not necessarily the first association when talking about fossil hydrogen. But hydrogen is also used to make xylitol. In other words, the hydrogen economy does not only permeate the energy market. Hydrogen permeates society extensively, and Rinne knows that synthetic products made from hydrogen will be very similar to fossil products.

Hydrogen enables carbon-free refining and production of steel and chemicals, and another alternative to carbon-free transport. When energy production shifts more strongly to renewable, weather-dependent energy sources, balancing power will be discussed: on windless days, hydrogen or synthetic gases, in which, for example, electricity produced by wind power is stored, can serve as a source of balancing power.

The hydrogen grid, on the other hand, helps buffer energy storage. Thanks to hydrogen networks, it is not necessary to produce hydrogen in the same place as it is consumed, but hydrogen can be produced, for example, closer to wind turbines and transferred from it to its intended use.

When developing cross-border infrastructure projects, consumers may be found in other areas than the most obvious ones.

– Different value chains, new technology and subcontracting chains can emerge when designing, building and eventually moving on to the commissioning phase. There is also an opportunity to innovate in the world of science, for example, Kärki says.

In his opinion, hydrogen should be seen as a great opportunity for Finns.

– New industry, new jobs, tax revenues and innovations are important for the welfare of society. Instead of always talking about how to cut, we would also create opportunities for growth and provide services and well-being.