Copyright: Zukunft Gas
Copyright: Zukunft Gas
12-13-2024

Nordic-Baltic Hydrogen Corridor Enters Next Phase

The European transmission system operators (TSOs) from Finland, Estonia, Latvia, Lithuania, Poland, and ONTRAS Gastransport GmbH (ONTRAS) are launching the feasibility phase for the Nordic-Baltic Hydrogen Corridor (NBHC). Following the successful completion of the pre-feasibility study earlier this year, the project partners will now conduct feasibility studies in their respective countries.

These studies will focus on various critical aspects, including pipeline routing, compressor station planning, financial and economic analyses, environmental and safety approvals, and project timeline assessments. The studies are expected to run until mid-2026.

In addition to national feasibility studies, the TSOs plan to conduct several cross-border analyses focusing on project coordination, a shared commercial framework, and stakeholder engagement. These cross-border studies are expected to be completed by the end of 2026.

“We are thrilled to advance this significant collaboration and make great progress toward realizing the NBHC project. This initiative not only has the potential to substantially reduce the carbon emissions of the involved countries but also to foster business growth and support the development of an entirely new hydrogen economy in Europe,” stated the project partners.

Before the feasibility and cross-border studies begin, the TSOs will conduct a joint commercial principles study. Based on the findings of the pre-feasibility study, this study, starting in 2025, will explore cross-border cost allocation. The aim is also to collaboratively develop appropriate principles for a commercial model and revenue mechanisms to ensure the financial viability for all participating TSOs.

Overall, these analyses will pave the way for the development of the NBHC as a secure, reliable, and cost-efficient transport route for renewable hydrogen, linking to the future European hydrogen network in Central Europe.

“We are pleased that the NBHC is entering the next development phase. After outlining the direction during the pre-feasibility study, we are now diving into the details within each country. With the results of these studies, we will establish a solid and sustainable foundation for the NBHC,” said Ralph Bahke, Managing Director of ONTRAS.

The NBHC is a key building block for Europe’s transition to a sustainable and decarbonized energy system. It will significantly contribute to the EU’s decarbonization targets by integrating renewable hydrogen across six member states. The corridor could reduce carbon emissions by up to 37 million tons of CO2 equivalent per year by 2050. Moreover, the NBHC will enhance Europe’s energy supply security by connecting domestic renewable hydrogen production with existing and new demand centers, supporting the decarbonization of hard-to-abate sectors such as steel and chemical industries.

In April 2024, the NBHC was granted the status of a Project of Common Interest (PCI) by the European Commission as part of the Baltic Energy Market Interconnection Plan for Hydrogen (BEMIP Hydrogen). In October 2024, the project partners applied for funding under the Connecting Europe Facility (CEF), with results expected in the first quarter of 2025.

The NBHC is a joint initiative by six European TSOs: Gasgrid Vetyverkot Oy from Finland, Elering from Estonia, Conexus Baltic Grid from Latvia, Amber Grid from Lithuania, GAZ-SYSTEM from Poland, and ONTRAS.

Source: https://www.ontras.com/en/aktuelles/newsroom/finnischer-wasserstoff-fuer-deutschland-h2-korridor-geht-machbarkeitsphase

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