Developing regional hydrogen and carbon dioxide transfer networks – The time is now

Now, if ever, is the time to develop regional hydrogen and carbon dioxide transfer infrastructure. Recently, many have been following the news regarding the planning and development of the national hydrogen infrastructure, and various stakeholders in Finland are examining the regional opportunities created by the hydrogen transfer network.

Gasgrid has published the first phase plan of the national hydrogen transmission network route, with the estimated transfer network length being over 1000 km. Building the national hydrogen transfer network supports the advancement of several hydrogen and e-fuel production plant projects and helps improve the profitability of plant investments. A comprehensive transfer network can also create new uses for hydrogen, while playing a key role in balancing hydrogen production and consumption.

The hydrogen transfer network supports regional development

At the core of the early development of the national hydrogen network are areas close to the planned national network or ones directly influenced by it. The transfer network project creates new business opportunities from a broader geographical perspective. The employment impact of the construction phase of the hydrogen network is significant and does not cover only traditional actors in the energy sector.

It’s important to consider the possibilities of developing local hydrogen transfer networks, which can attract more industrial-scale hydrogen investments to the regions as part of regional hydrogen ecosystems.

There are several industrial parks and hubs in Finland that are well prepared for the development of hydrogen transmission networks. They play an important role in the development of hydrogen transmission infrastructure, especially when the market is still in its early stages. For instance, the development of local hydrogen transmission networks can be facilitated and coordinated by regional development companies which wish to support the establishment of hydrogen projects in their areas of operation.

Carbon dioxide transfer network and its possibilities

In addition to local hydrogen transmission networks, regional carbon dioxide transmission networks have developed, which may themselves have several functions. The CO₂ transport network enables the direct industrial utilization of CO₂ and may be in the process of securing the availability of CO₂ e.g. for the e-fuel production plant. Plant operators should strengthen their resilience and take into account the possibility that the availability of carbon dioxide and its primary source may change.

Furthermore, the CO₂ transfer network could be utilized for transfer of carbon dioxide for long-term storage, highlighting the importance of proximity to ports. By simultaneously promoting both carbon dioxide and hydrogen transfer network projects, essential synergies and cost savings can be achieved, particularly in the planning and implementation phases of transfer networks.

Whether it is a local hydrogen or carbon dioxide transport network project, it is a good idea to promote the project in cooperation with different actors across traditional industry boundaries. This will solve some of the profitability challenges related to the projects, as well as reduce operator-specific risk. Positive news in terms of investments in hydrogen transfer could act as a needed boost for plant projects still in the development phase.

As the hydrogen market develops, investments in the right direction are essential in catalyzing the economic growth enabled by the hydrogen transition. The first local transfer network projects have an identifiable demonstration value, which can affect the amount of potential investment support.

Tomas Norrena, Hydrogen Business Lead, +358 40 358 0658, tomas.norrena@sweco.fi