Clean hydrogen economy strategy for Finland 27 June 2023 Table of contents 1. Forward ............................................................................................................................ 5 2. Executive summary ........................................................................................................... 6 3. What is the scale of Finland’s opportunity to benefit from the hydrogen economy? ............................................................................................................................. 8 3.1 Global trends for hydrogen 8 3.2 Hydrogen demand in Europe 9 3.3 Hydrogen opportunity for Finland 9 4. Why is Finland well placed to be the European leader in the hydrogen economy? .......... 10 4.1 Clean electricity and grid capabilities 11 4.2 Finnish natural resources 12 4.3 Existing capabilities and economic environment 13 5. What areas of the hydrogen economy should Finland focus on to yield the most benefits? ............................................................................................................................ 15 5.1 Expand clean hydrogen production 15 5.2 Accelerate the ramp up of domestic clean industries 18 5.3 Grow exports of hydrogen-related technologies and services 22 6. What does Finland need to do to become the leading hydrogen economy in Europe? .............................................................................................................................. 26 6.1 Recommendations to reach Finnish clean hydrogen goals 26 6.2 Roadmap for strategy execution 30 2 List of abbreviations CCS – carbon capture and storage CO2 – carbon dioxide EU – European Union H2 – hydrogen ICT – information and communication technology Mt – million tons R&D – research and development SMR – steam methane reforming TWh/y – terawatt-hour per year 3 Glossary Clean hydrogen – “Clean” is used to depict hydrogen produced from low-carbon or carbonneutral. “Clean” hydrogen in Finland will most likely be produced via electrolysis from renewable and nuclear energy. Synthetic fuels – is used to refer to synthetic methane, synthetic kerosene, and synthetic methanol produced using clean hydrogen. They are the three fuels that fall under this category for the purposes of this document. 4 1. Forward Our ambition is for Finland to be the leading high-value hydrogen economy in Europe by 2035. We believe that by building a high-value hydrogen economy, Finland can unlock significant economic value that creates wellbeing for Finnish society and expands the Finnish climate handprint globally. To rise and meet this ambition, we will need to harness our collective strengths, leverage our natural advantages, and work together. Across Finland today, there are numerous trailblazing hydrogen projects underway and even more taking shape. These projects are decarbonizing our existing industries, attracting new investments, generating new export opportunities, and creating new jobs. The newly published Government Program, “A Strong and Committed Finland”, sets a vision for Finland to become a key player in the hydrogen economy and an attractive location for hydrogen refining projects. It also affirms Finland’s aim to account for 10 percent of the EU’s clean hydrogen production and for at least the same percentage of hydrogen use. The Finnish Hydrogen Cluster is pleased with the direction chosen by the new Government, which largely aligns with the vision outlined in this document. Next, it is crucial to turn this vision into reality by taking ambitious actions that will propel Finland rapidly towards these goals. We have developed this Clean Hydrogen Economy Strategy for Finland to chart a course towards achieving the ambition to become Europe’s leading hydrogen economy ecosystem across the entire value chain, including technologies and services. This Strategy presents tactical actions needed to realize the opportunities the hydrogen economy in Finland offers to Finns, partners in Europe, and stakeholders around the globe. Achieving these ambitions, however, cannot be done by the Hydrogen Cluster Finland alone. This strategy is a call for action. Work in concert with us. You and your organization play an important role in making this strategy a reality in your sphere of impact. In this document, Hydrogen Cluster Finland has recommended a few stakeholders to take these actions forward, but there are more who can contribute. Actions are need