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IEA Finland 2023 | Energy Policy Review
Finland 2023 | Energy Policy Review
Hydrogen
The government sees a key role for low-emission hydrogen in Finland’s hard-to-abate sectors and end uses, especially in certain industrial processes and heavy transport. The government published a National Hydrogen Roadmap in November 2020. The road map provides an overview of the potential for the production and use of low-emission hydrogen in Finland, noting that through 2030 the focus will be on industrial uses. The road map defines qualitative goals relating to low-emission hydrogen production, transport, storage and its use in industry, mobility and other sectors (Laurikko et al., 2020). The government published a study in May 2022 on the opportunities and limitations of the hydrogen economy in Finland.
The study considered five scenarios and estimated that production volumes of low-emission hydrogen would be 3.7-7.9 terawatt hours (TWh) by 2030 and 6.4-132.9 TWh by 2050. The large range results from scenarios that included notable exports of hydrogen and electro-fuels (Finnish Government’s Analysis, Assessment and Research Activities, 2022). The NCES includes a national hydrogen strategy detailing the role hydrogen is expected to play in achieving Finland’s climate and energy goals. Priority is placed on developing a domestic hydrogen value chain, with a secondary focus on the potential for hydrogen exports. The strategy defines targets for electrolysis capacity to reach at least 0.2 GW by 2025 and at least 1.0 GW in 2030 (compared to just 9 MW in 2021).
The strategy details measures to promote the production and use of hydrogen and electro-fuels based on hydrogen and indicates that Finland will take a technology-neutral approach that welcomes all emission-free forms of hydrogen production. Support programmes for hydrogen production and use include EUR 156 million for low-emission hydrogen and CCUS projects from the national recovery and resilience plan, an update allowing electro-fuels to contribute to meeting the transport biofuels blending mandate, a target for electro-fuels to cover 3% of transport energy demand by 2030, and support for the development of hydrogen transportation networks and refuelling stations. IEA.
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