Expected hydrogen investments froze in Finland and around the world a couple of years ago. International talk about a direct “hydrogen winter” began.
Many things slowed down the hyped projects: the regulation was unclear, which is why there were no customers. In addition, the electrolyzers needed in the plants were very expensive.
However, it’s starting to happen now.
“If a moment ago we were talking about a hydrogen winter, maybe now we should start talking about spring,” he said The Confederation of Business leading expert Janne Peljo In an interview with Talousamau on Wednesday.
Regulation and incentives for the use of hydrogen have become clearer in Europe, so now those projects that have been waiting for demand to materialize are starting to get close to investment decisions, Peljo estimates.
“The demand in Europe is starting to fall into place little by little. There are hydrogen operators in Finland who have made really large supply contracts with Central European customers.”
Investments to come.
EK’s Janne Peljo (right) monitors the green transition and renewable energy investments. He was interviewed by Jussi Rosendahl on the economic morning.
PHOTO: Antti Mannermaa
Green hydrogen producer in Harjavalla P2X recently said that it had sold out of its production capacity for the next ten years. Also Clean-Gas said that he had made a billion dollar contract for the supply of synthetic methane from a facility whose investment has not even been decided yet.
Peljo said he believes that there will be more good news from the hydrogen sector in Finland this year.
“If someone somewhere in Europe makes green hydrogen, it will be done on a large scale in Finland.”
The potential is huge in the long run, Peljo estimates.
Hydrogen and the fuels refined from it are suitable for industrial use and also for example ships, trucks and airplanes. Hydrogen has been called the oil of the future.
“If you think about industrial uses or possibly long-term sustainable aviation fuels that rely on the hydrogen value chain, then the potential is really big. At the moment, we are quite far from it being cost-effective and achievable in terms of the market, but when European regulation starts gradually introducing tougher usage requirements, that market will start to grow accordingly in the 2030s.”
According to EK’s statistics, a total of 26 billion euros worth of hydrogen projects are pending in Finland.
“Most of it probably won’t come true, but will run into some kind of challenges as the planning progresses, but on the other hand, the fundamental factors are very firmly in place. Yes, we should be able to bake a pretty good hydrogen cake in Finland with the ingredients. Whether it will be ready in the middle of the 2030s or on the other side remains to be seen.”
Watch the discussion and broadcast in full here: