Finland on its Way to Becoming a Hydrogen Hub: Energiequelle Launches Its First Hydrogen Project in Finland
Oulu/Finland – Finland aims to become a key hydrogen player in Europe. The country has set itself the ambitious goal of producing 10 percent of the EU’s emission-free hydrogen by 2030. Finland is well positioned to achieve this, as electricity prices for companies are among the lowest in the EU. German project developer Energiequelle is taking advantage of these favorable conditions.
Project Launch and Strategic Partnership with the City of Oulu
Energiequelle Finland, together with the City of Oulu, has kicked off the company’s first own hydrogen project in the country. The planning approval for the Oulu Green Hydrogen Park marks the beginning of a multi-phase investment initiative in Northern Finland. In the first phase, a hydrogen production plant with a capacity of up to five megawatts and a hydrogen refueling station for buses and heavy-duty vehicles will be built. Completion of the first phase is planned by 2028.
In the next phase, the production capacity is expected to increase to between 10 and 50 MW. Once the necessary infrastructure is in place, hydrogen exports could begin via the planned pipeline to the Port of Oulu. The third phase would involve an additional expansion of 100 to 500 MW. The final timeline and full scale of the second and third phases will depend heavily on market conditions and the available infrastructure at the newly selected site in Pyyryväinen.
The City of Oulu has reserved space for three new hydrogen production and processing facilities in the same industrial area, with a combined capacity of 1,500 MW, including the Energiequelle project. This cluster of multiple operators is intended to create synergies and encourage investment in hydrogen technology.
“We believe that Oulu's strategy of bundling several hydrogen production operators in the same area is the right one, as it supports the development of hydrogen transmission infrastructure in the region and sends a clear message to the energy-intensive industry that they can count on hydrogen production in the region in the future. This is exactly the kind of predictable investment environment and confidence-building policies we hope to see from local, national and European decision-makers",” said Energiequelle CEO Nils Borstelmann.
Energiequelle plans to replicate in Oulu the model it has already implemented in Germany, such as in the HY.City.Bremerhaven project. The combination of hydrogen production and refueling for heavy-duty vehicles has proven successful, the company says. According to Energiequelle, a stable investment and market environment will be key to the success of the Finnish project.
Finland as a Hydrogen Location: Affordable Energy Meets Ambitious Export Strategy
Finland is considered an attractive location for green energy: 95 percent of electricity production is emissions-free, new wind farms are being built without state subsidies, and electricity prices are among the lowest in Europe. These conditions enable competitive hydrogen production for export.
“Affordable and clean energy are prerequisites for market-based hydrogen production, as hydrogen and its derivatives require a lot of energy. With its extensive land area, Finland also has great potential to significantly increase quickly the production of renewable energy, such as wind and solar power, as the electrification of Europe progresses,” Borstelmann explained.
Finland’s national hydrogen strategy aims to provide 10 percent of the EU’s green hydrogen by 2030. At the same time, state-owned network operator Gasgrid Finland, with EU support, is pushing the development of cross-border infrastructure. “This makes Finland and Germany perfect energy partners. Germany’s hydrogen strategy foresees a demand of 95–130 TWh by 2030, 50–70 percent of which will have to be imported,” said Karl Schultheis, Head of Business Development at Energiequelle Finland.
In January 2025, all three hydrogen transport infrastructure projects by Gasgrid in the Baltic Sea region received financial support from the European Union. These include the Nordic-Baltic Hydrogen Corridor, connecting Finland with Central Europe via the Baltic States and Poland; the Nordic Hydrogen Route, which will facilitate hydrogen flow along the Gulf of Bothnia to Sweden; and the Baltic Sea Hydrogen Collector project, which is developing offshore infrastructure to link Finland, Sweden, and Central Europe. These initiatives promote investment in clean electricity and hydrogen across the Baltic Sea region. Finland and Germany are thus positioning themselves as future key players in the European hydrogen economy.
Source: IWR Online, 14 Apr 2025
