Project Title

BalticSeaH2 – Large-scale, cross-border hydrogen ecosystem including a hydrogen valley around the Baltic Sea.

Project Objective and Description

The goal of the BalticSeaH2 project is to establish a large-scale, cross-border hydrogen valley (ecosystem) around the Baltic Sea. The central (flagship) hydrogen valley is located in Southern Finland and Estonia. The area between Finland and Estonia is an optimal location for creating a cross-border hydrogen market model. Part of the necessary infrastructure—natural gas pipelines, electricity grids, and active maritime traffic between Tallinn and Helsinki—already exists in the Gulf of Finland. The project also aims to reduce CO2 emissions from the current maritime traffic.

This project will create the first significant cross-border hydrogen valley in Europe. The objective is to establish an integrated hydrogen economy around the Baltic Sea to ensure energy self-sufficiency and reduce carbon emissions from various economic sectors. The project involves a total of 40 partners from nine countries in the Baltic Sea region. By merging several local hydrogen technology hubs into a broader valley, a truly integrated, interregional hydrogen economy is being developed, something that has not been done on this scale in Europe before.

The BalticSeaH2 project will enable 25 technology pilots, demonstrations, and investment projects (use cases) across different segments of the hydrogen value chain, with a total investment potential of more than 4 billion euros.

Hydrogen and its further synthetic fuel derivatives can be used or sold for various applications in the sectors united by this project.

The Green and Smart Technology Cluster in this project will focus on research into the potential for the production and application of green ammonia and will participate in other project activities aimed at facilitating and supporting the future of hydrogen valleys in Latvia.

Project Activities

Within the BalticSeaH2 project, 25 technology demonstration and application projects are being prepared. The goal of these demonstration projects is to pilot joint activities and integrate parts of the hydrogen value chain in an international cooperation environment. The entire hydrogen value chain is well represented in these projects—some will demonstrate large-scale hydrogen production, others will implement hydrogen storage and transportation solutions, some will use hydrogen for the synthesis of other green energy carriers (derivatives), and there are also those that will demonstrate the end-use of hydrogen or its derivatives in various industries.

In quantitative terms, the BalticSeaH2 demo projects have the potential to produce more than 130,000 tons of hydrogen annually. Consumption will be even higher, exceeding 200,000 tons per year, which will encourage increased production and attract other producers to join the hydrogen valley. The production volume of hydrogen derivatives will exceed 600,000 tons, highlighting the significant impact achieved solely by these demonstration projects. Derivatives or e-fuels will be used, for example, as fuel for ships to ensure carbon-neutral maritime transport, as raw materials for fertilizers to reduce dependence on current fossil resources, or as olefins to provide a sustainable and carbon-neutral way to produce plastics and other long-lasting products. Since the hydrogen molecule is versatile and acts as a fundamental element in countless chemical compounds, the possibilities for hydrogen molecules and their synthesis are limitless.

BalticSeaH2 projects can easily exceed the boundaries of industrial demonstration scale. The potential investment capital for projects implemented within this hydrogen valley could exceed 4 billion euros and create thousands of new jobs throughout the hydrogen value chain. As pilot plants are expanded and new interested companies join the hydrogen valley, BalticSeaH2 could kickstart a transnational industrial revolution to establish a hydrogen economy in the Baltic Sea region. The demonstration projects will provide an opportunity to pilot new technologies and explore integration into an already functioning economy.

Thanks to the experience gained during the pilot phases, implementing larger-scale projects and solutions will be easier and more efficient. This will allow for a swift transition to a fully functional cross-border hydrogen economy, bringing Europe closer to its sustainability and carbon neutrality goals.

The Green and Smart Technology Cluster will contribute to a range of activities:

  • Hydrogen use cases in the maritime sector, including the application of green hydrogen and ammonia,
  • Prospects for green ammonia production in Latvia,
  • Feasibility study for the establishment of a green ammonia ship bunkering center using existing ammonia terminal infrastructure in the Port of Ventspils,
  • Assessment of renewable energy potential for hydrogen and its derivatives production in Latvia,
  • Stakeholder analysis in Latvia,
  • Awareness-raising activities about hydrogen and new energy technologies and efforts to promote their adoption,
  • Joint creation of a hydrogen market model,
  • Strategic growth planning for H2 valleys,
  • Communication, training, knowledge exchange, and information dissemination events.

Project Partners

The consortium includes 40 partners from nine Baltic Sea region countries: Finland, Estonia, Latvia, Lithuania, Poland, Germany, Denmark, Norway, and Sweden.

Latvia is represented by two partners:

  • Green and Smart Technology Cluster
  • Freeport of Riga Authority

Foreign partners:

  • CLIC Innovation
  • Gasgrid Finland
  • Cybernetica
  • Baltic Innovation Agency
  • Solarstone
  • Lithuanian Hydrogen Energy Association (VEA)
  • Hendrikson & Ko
  • City of Tallinn
  • Viru Vesinik
  • PowerUP Fuel Cells
  • Estonian Hydrogen Cluster
  • ABB
  • Helen
  • Flexens
  • P2X Solutions
  • Vantaa Energy
  • VTT Technical Research Center of Finland
  • Polish Hydrogen Cluster
  • IWEN Energy Institute
  • Green NortH2 Energy
  • Elomatic
  • Borealis Polymers
  • Elcogen
  • Convion
  • Aalto University
  • Ballard Power Systems Europe
  • Energy Cluster Denmark
  • Rønne Havn
  • Energy Valley
  • Energiforsk
  • Lhyfe
  • RISE Research Institutes of Sweden
  • Uppsala University
  • Skyborn Renewables Sweden
  • National Institute of Chemical Physics and Biophysics Estonia
  • Neste
  • Wartsila Finland
  • Viking Line
  • Yara Finland

Project Duration

The project began in June 2023 and will last for five years.

Project Budget

The total funding for the project is 33 million euros, with 25 million euros provided by the EU. The European Clean Hydrogen Partnership supports European hydrogen valley projects with funding from the European Commission’s RePowerEU initiative.

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