The Nivala-Haapajärvi region has worked determinedly to promote the hydrogen economy and hydrogen infrastructure, and the results can be seen. The first hydrogen production projects are at the permitting stage.

The hydrogen economy and development of the hydrogen infrastructure are seen as a major opportunity for the region and are being driven by regional business development organisation NIHAK.

“Our role is to pave the way for new investment. We reach good outcomes by promoting dialogue and providing up-to-date information to support decision-making,” says NIHAK’s CEO Toni Krankkala, who spoke at an event Gasgrid hosted in Oulu for businesses on the potential of green transition projects in North Ostrobothnia.

Gasgrid is implementing the national hydrogen pipeline network. Krankkala hopes for strong cooperation with the regions in the design of the hydrogen infrastructure. Regional cooperation should also help to guide national planning.

“Infrastructure construction should start where the identified potential is greatest. In other words, our sights are on where there is most renewable energy production and installations utilising hydrogen production.”

NIHAK’s CEO presents a list of actions that have thrust the hydrogen economy forward. On the initiative of the regional development organisation, a number of municipalities and business in the southern part of North Ostrobothnia and the Council of Oulu Region drafted a joint opinion in which they highlighted the will to develop a future hydrogen network in the area and the reasons advocating the route.

“The Jokilaaksot area will produce more than half of onshore wind power by 2030. In addition to this, plenty of new clean energy projects are planned, related to solar, bio-energy and energy storage,” Krankkala reasons.

NIHAK is one of the first organizations in Finland to survey locations suitable for hydrogen production regionally.

“The survey shows that the area is excellently placed for large-scale hydrogen production. The survey enables marketing to actors interested in hydrogen production and related processing operations.”

The regional development organization has also commissioned a regional study of carbon dioxide sources.

“The study shows that the biogas plants and biorefineries under construction in the region, as well as district heating plants, produce large amounts of carbon dioxide, which, when combined with the hydrogen produced, could provide a significant quantity of clean fuel.”

NIHAK has contacted all energy sector actors operating in the region and charted their plans related to hydrogen production.

“There are now a total of 60 wind and solar power projects represented by 30 different actors in the region. In addition, there are already several hydrogen production projects in the planning and permitting phase in our region,” Toni Krankkala enthuses.

“We will launch a techno-economic study on the connection of our region to the hydrogen backbone. The study will assess the feasibility and economic viability of the regional hydrogen network and connecting it to the backbone,” Krankkala says.

This will also include a survey of the possible distances between connection points. The study will be carried out in cooperation with Gasgrid, Fingrid and energy companies in the region.

At the same time, NIHAK will provide municipalities with up-to-date information to support land use planning and zoning.

Toni Krankkala believes that the hydrogen economy will strengthen the competitiveness and prosperity of the municipalities.

“Development of the hydrogen economy will open up a range of different opportunities for municipalities and the entire region. The hydrogen economy may well be of greater significance than wind power construction. The investments will attract other chemical industries that benefit from hydrogen production.”

The most predictable benefit to municipalities is the tax revenue accruing from different sources. The benefits arising through indirect effects will become at least as important.

“All industrial activity brings with it indirect jobs, new residents, service needs and business opportunities. The new industrial base will also give the region a chance to increase its skills.”

“The promotion of clean energy and climate objectives in general will bring major benefits to the region in terms of increasing its attractiveness,” Krankkala sums up.

To promote the hydrogen industry, Krankkala thinks that the regions with the best knowledge of the potential and opportunities should be involved in the planning process.

Development should be transparent so that decision-makers in the region have access to up-to-date information and the development of the industry also gains social acceptance in the region.

“There is already strong political support for the long-term development of the hydrogen industry in the NIHAK region. Proactive cooperation is needed to maintain it. Also, the permitting processes for investment should be made as smooth as possible.”