Hydrogen economy as a new resource for industrial growth in South-East Finland

The project, led by the City of Lappeenranta, highlighted promising opportunities for the use of green hydrogen in the region. Hydrogen plays an important role in achieving carbon neutrality in transport, industry and energy storage.

The energy shortage that threatens the planet will disappear as we move from fossil fuels to electricity for energy production. The aim is to generate electricity without emissions, for example from wind or solar power. Petrol and diesel oil can be replaced by synthetic fuels, using carbon dioxide from the smokestack as one of the raw materials.

The key word here is green hydrogen.

In south-eastern Finland, the LUT University has conducted extensive research into the production of so-called green hydrogen, based on an emission-free electrolysis process of water using renewable electricity. In addition to green hydrogen, the production of synthetic fuels requires bio-based carbon dioxide, which is abundantly available from the forest industry in south-east Finland.

The Hydrogen, Flow to the South-East project, led by Lappeenranta, has shown promising results in terms of the benefits of processing hydrogen into end products close to the carbon feedstock, pulp mills. Carbon dioxide is becoming an important raw material for the production of synthetic fuels," says Markku Heinonen, Development Director of the City of Lappeenranta.

- South-east Finland is the hub of bio-based carbon dioxide production in Europe and this is now attracting investment in the hydrogen sector to South-east Finland.

- Green hydrogen also creates many new opportunities in the chemical industry, and Solvay Chemicals Finland Oy's green hydrogen plans in Kouvola are a good example of this," says Kari Laine, an expert at Kouvolan Innovation Oy.

Promising results from the project

The Hydrogen, Power to the South-East project is an excellent demonstration of the common will for development in South-East Finland and the strength of the cooperation between the Finnish Hydrogen Valley, Lappeenranta-Imatra and Kouvola-Kotka city regions, LUT University and XAMK University of Applied Sciences of South-East Finland.

- In a total project of around EUR 700 000, universities were responsible for research results based on the needs of companies, while cities prepared land use plans and location studies related to renewable energy projects, Heinonen says.

For urban areas, the project has resulted in a good snapshot of the areas where energy companies should locate and where the conditions are most optimal for solar or hydrogen companies, for example.

- These conditions include consideration of nature, security and infrastructure.

- The hydrogen sector is only just beginning to develop criteria for safety distances and other construction obligations, and the work done is ground-breaking at national level.

The construction of energy transmission networks is seen as an important factor in the promotion of urban areas.

- This could mean, for example, building a hydrogen pipeline from the south-east corner to Uusimaa and transferring carbon dioxide from the forest industry to hydrogen plants, Heinonen envisages.

- The LUT study has shown that transport by pipeline would provide a significant transport cost advantage for hydrogen companies compared to trucking.

A study led by the University of Applied Sciences of South-East Finland found that the utilisation of waste heat from the electrolysis plant creates a significant source of revenue and lowers the cost of hydrogen production. The study has made calculations on the use of waste heat as part of district heat production under different siting options.

A region on the rise with investment

To promote the hydrogen economy, the Finnish Hydrogen Valley Association has been established as an arena for cooperation between south-eastern and eastern Finland. Together with its member communities, the association will be able to make use of the research results and energy use criteria that have now been produced.

- The region sees that instead of exporting hydrogen to Europe, it makes sense to process hydrogen into end products near the sources of carbon dioxide feedstock, says Jami Holtari, CEO of the Finnish Hydrogen Valley Association.

- Carbon dioxide is becoming an important raw material for the production of synthetic fuels, and half of Europe's bio-based carbon dioxide is produced in Finland and Sweden.

The project promoters see South-East Finland as a hub for bio-based carbon dioxide production throughout Europe, and this is now attracting investment in the hydrogen sector to South-East Finland.

- Cities believe that forward-looking land use planning and hydrogen siting expertise can significantly accelerate the realisation of investments in the sector, Heinonen says.

- It is also important to understand why there is a desire to find the best possible siting options for wind, solar and other renewable energy projects, even with the caveat that large power plants may encroach on a small proportion of land that is currently in natural use.

In Eastern Finland, however, it is believed that these investments as a whole will be strongly beneficial for the climate, as they will enable a move away from fossil energy. At the same time, thousands of new jobs will be created in the regions and self-sufficient production of affordable, clean electricity will be promoted.

A seminar on the results of the Hydrogen, Power to the South East project will be held at the Nuijamiehne Cultural Centre on 5 March 2024. More here: https://suomenvetylaakso.fi/vetya-ja-virtaa-kaakkoon/

The Hydrogen, Power to the South-East project has been implemented by the City of Lappeenranta, the City of Imatra, Kouvola Innovation Oy, Cursor Oy, LUT University and XAMK University of Applied Sciences of South-East Finland. The project has been funded by the Finnish Structural Funds programme Sustainable Growth and Jobs 2014-20. The seminar is funded by the Green Electrification Ecosystem Services and Co-creation Strengthening in the Greenreality Network 2022-2024 project funding. 

For more information on the project, please contact:

Markku Heinonen, Development Director, City of Lappeenranta, tel. 040 581 1998

Ilkka Räsänen, Director of Environment, City of Lappeenranta, tel. 040 081 5284

Maarit Pimiä, City Architect, City of Lappeenranta, tel. 040 653 0745

Marja Pelo, Head of Planning, City of Imatra, tel. 040 832 2433

Expert Kari Laine, Kouvola Innovation Oy, tel. 040 179 7083

Project Manager Riina Laaksonen, Cursor Oy, tel. 040 190 2534

Hannu Karjunen, LUT-University of Applied Sciences, tel. 040 171 3840

Sirpa Rahiala, Head of Research Group, XAMK, tel. 044 702 8418

For more information on the 5.3. event, please contact:

Jami Holtari, Managing Director, Finnish Hydrogen Valley Association, tel. 040 055 1435