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Hydrogen economy : Opportunities and limitations






Asiasanat ja teemat

research, research activities, clean hydrogen, hydrogen, hydrogen economy, hydrogen scenarios




Hydrogen economy aims to reduce CO2 emissions in sectors and processes where utilising other solutions is particularly challenging. Such processes can be found in industries, aviation, maritime transport, and heavy-duty road transport.

The EU is currently preparing legislative changes to enable an increased implementation of hydrogen-based solutions. At the same time, countries in and outside Europe have been develoing their national hydrogen strategies. Thousands of projects are being established for the production and end-use of clean hydrogen in Europe alone.

Hydrogen economy provides an opportunity for Finland, as Finnish power generation has a relatively low carbon intensity and there is a stable national transmission grid for electricity available. Furthermore, Finland has vast potential for additional wind power, which could be utilised to produce hydrogen and electrofuels to meet domestic demand as well as for exports. On the other hand, the future supply and demand still remain highly uncertain in the international market. Strong competition is anticipated between different technologies and alternative locations for production.

Finland must ensure preconditions for industrial investments in the hydrogen economy, and create clear targets and an action plan for the hydrogen transition in different sectors. The development of the hydrogen economy can be supported, e.g., by easing the licensing of additional wind power construction, increasing hydrogen expertise, and supporting R&D activities in technologies, services, and collaboration. Electricity and hydrogen transmission infrastructures should be developed as a whole in preparation for the future needs while managing the related risks and costs. Alternative technologies and solutions must be considered along with the hydrogen-based solutions. In addition, conditions for fair competition must be ensured both domestically and internationally.


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