Finland’s Hydrogen Strategy: Building a Clean Energy foundation for Resilience, and Growth.

Key Takeaways 

• Finland’s hydrogen strategy is central to national goals: carbon neutrality by 2035, energy independence, and industrial competitiveness. 
• Clean hydrogen (produced from renewable and/or nuclear power) is positioned not just for winter stability, but to address seasonal variation, geopolitical risks, and market demands. 
• Strong renewable resources such as wind, hydro, biomass, when combined with a stable nuclear baseload, give Finland a unique opportunity. 
• Key cost levers include electricity sourcing, utilisation rates, capital investment, regulatory clarity, and scale. Under favourable conditions, hydrogen production costs could fall into the €2‑3/kg range by 2035. 
• Hard‑to‑abate sectors such as aviation, the chemical industry, fertiliser production, and synthetic gas are the areas where Finland’s hydrogen strategy can make the most measurable difference. 
• Finland’s clean energy resources and geographic location put it in a strong position to develop export opportunities. 
• Success depends on matching infrastructure, regulatory frameworks, financing, demand certainty, and public acceptance. 
• Stargate Hydrogen is positioned to be part of Finland’s hydrogen strategy towards decarbonisation and sees the country as one of the most promising landscapes. 

About the Author 

Why Finland’s Hydrogen Strategy Matters

Finland is known for its long winters, aurora borealis, forests, lakes, great education, and the happiest people in the world. But behind the admirable society and scenic landscapes lies a country facing important structural shifts in how it powers itself. 

In 2022, Finland cut off its dependence on Russian pipeline gas and simultaneously doubled down on wind energy expansion, kept its nuclear reactors running, and committed to becoming carbon-neutral by 2035. This combination of ambition and urgency created a natural space for hydrogen. 

Hydrogen fits into Finland’s energy puzzle not just as a decarbonisation tool, but as a hedge against volatility. It can store surplus wind in summer, support industry year-round, and work alongside nuclear baseload to absorb off-peak electricity and enhance grid flexibility. It also reduces reliance on volatile fuel imports, reinforcing national security and economic stability. 

The challenge now is turning hydrogen strategy into hydrogen infrastructure and opportunity into outcomes, but the path is not straightforward. While electricity can replace fossil fuels in some sectors, others, like steel, aviation, or industrial processes, require energy carriers that electricity alone can’t provide. Hydrogen has become essential here. 

Finally, clean hydrogen also brings economic potential. Finland’s clean energy resources, skilled engineering base, and proximity to the Baltic and Northern European markets put it in a strong position to develop export opportunities. Hydrogen is not only about replacing fossil fuel imports, but also about creating a future-oriented industrial sector at home. 

Clean Hydrogen Strategy & National Commitments 

In February 2023, the Finnish government adopted a formal resolution aiming to produce at least 10% of the EU’s emissions-free hydrogen strategy by 2030. This bold target aligns the country with EU decarbonisation goals and positions it as a key player in the continental hydrogen economy. 

The national “Clean Hydrogen Economy Strategy for Finland,” developed under the coordination of Hydrogen Cluster Finland, outlines how this vision will be achieved. The strategy takes into consideration the full hydrogen value chain, from production and infrastructure development to end-use sectors and potential exports. 

Crucially, Finland defines “clean hydrogen” as hydrogen produced via electrolysis powered by renewable or low-carbon electricity sources, including nuclear. The hydrogen strategy avoids prescribing specific technologies, maintaining flexibility for alkaline, PEM, and other emerging methods as long as the result is low-emission hydrogen. 

For industries like steelmaking, refining, and chemicals, this offers a practical pathway to meet tightening emissions regulations. In aviation and transport, the strategy supports the development of e-fuels using hydrogen and biogenic CO₂. Utilities see hydrogen as a grid management and seasonal storage tool, while municipalities and urban planners can integrate it into heating systems. And for exporters, the strategy opens opportunities to develop clean fuel markets across the Baltic Sea and beyond. 

Finland’s hydrogen strategy & Nuclear Synergy 

Finland's energy profile is already among the cleanest in the EU, thanks to a strong presence of hydropower, wind energy, and biomass. The country’s hydropower plants, many of which have been operating for decades, provide clean electricity and critical grid balancing services. Wind power is expanding quickly, especially along the west coast, with growing interest in offshore installations. 

While solar plays a minor role due to long, dark winters, biomass from the forest industry is a year-round energy source and provides biogenic CO₂ that can be used in synthetic fuel production. This integration of forestry byproducts into the hydrogen ecosystem offers Finland a unique comparative advantage. 

Nuclear energy is another cornerstone. Plants like Olkiluoto and Loviisa provide consistent baseload power, accounting for a significant share of national electricity. Hydrogen production fits naturally with nuclear power by acting as a flexible load: when electricity demand is low, surplus nuclear output can be redirected to electrolysers, improving overall system efficiency. Moreover, unlike intermittent renewables, nuclear energy ensures that hydrogen production doesn’t rely solely on weather patterns. 

Infrastructure, Transmission, Storage, and Energy Independence 

Developing a successful hydrogen strategy is more than production; it’s about moving, storing, and using hydrogen effectively. That requires infrastructure, and Finland is already taking steps to build it. 

Gasgrid Finland, through its dedicated hydrogen subsidiary, has been tasked with planning and developing a national hydrogen transmission network. This includes onshore pipelines connecting production regions to industrial zones, as well as offshore routes that could link Finland to Sweden, the Baltic countries, Poland, and Germany. 

(Image: Gasgrid Finland) 

Storage is another critical component. Hydrogen can act as seasonal storage, converting summer electricity surplus into fuel that can be used in winter. Options being studied include above-ground tanks for daily fluctuations and underground storage in rock caverns for longer-term reserves. 

Energy independence is an underlying theme. Hydrogen produced domestically with Finnish wind, hydro, or nuclear electricity reduces dependence on imported fuels, particularly natural gas and oil. In the current geopolitical context, this self-sufficiency has taken on heightened importance. By securing its own clean energy sources, Finland strengthens both its climate position and its national security. 

Cost Drivers & Return in Finland’s Hydrogen Strategy 

The long-term viability of Finland’s hydrogen strategy depends heavily on cost. Hydrogen production costs, or Levelised Cost of Hydrogen (LCOH), are shaped by several variables: Mainly electricity price, but also electrolyser capital cost, utilisation rate, infrastructure expenses, and regulatory environment. 

Electricity prices are the dominant factor. Since electrolysis requires large volumes of power, even minor changes in electricity pricing can significantly shift hydrogen costs. Fortunately, Finland’s wind and hydro resources are some of the most cost-effective in Europe, especially when access to the grid is well-managed. Nuclear off-peak hours could provide an added low-cost source. 

Utilisation rate matters too. Electrolysers are capital-intensive. If they’re only running at 30% of the time, the cost per kilogram of hydrogen rises dramatically. Co-locating hydrogen production with consistent demand helps keep systems running and costs down. 

Capital costs for electrolysers and associated infrastructure are decreasing, but the investment remains substantial. Local manufacturing and supply chains will play a role in lowering costs over time. Finland’s and its neighbours’ engineering and manufacturing base gives it a potential advantage here if local production can scale. 

Regulatory stability and financing mechanisms round out the equation of the hydrogen strategy. Finland’s government has signalled support through resolutions, roadmaps, and alignment with EU funding instruments. Tax credits, state aid, and innovation funds can reduce financial risk, making projects more attractive to investors. 

Under favourable conditions, low electricity cost, high utilisation, and efficient infrastructure, Finland could see hydrogen costs fall to around €2 to 3 /kg by 2035. This makes clean hydrogen competitive with fossil alternatives in many applications, particularly in sectors facing carbon pricing or sustainability mandates. 

Scenario	Scale / Location	Average Electricity Cost	Typical Utilisation Rate	Estimated LCOH in 2030	Estimated LCOH in 2035
Conservative / High Cost	Small scale, grid supply, high fees, remote location	High	~30‑40%	~ €4.5‑5.5 / kg	~ €3.5‑4.5 / kg
Moderate / Mixed Ambition	Lower electricity cost, favourable grid fees	Mid‑electricity cost	50‑60%	~ €3.0‑4.0 / kg	~ €2.5‑3.5 / kg
Optimised / High Ambition	>100 MW, direct renewables / nuclear off‑peak, co‑located with demand & CO₂, good infrastructure	Lower electricity cost, favorable grid fees	~70‑80%	~ €2.0‑3.0 / kg	~ €1.8‑2.8 / kg

Offtakers, Industrial Applications & Sector Impacts Under Finland’s Hydrogen Strategy 

Hydrogen’s versatility is one of its biggest advantages. Finland’s hydrogen strategy outlines a wide range of applications, with particular focus on sectors where electrification is either too expensive or technically infeasible. 

In aviation, clean hydrogen is a critical input for the production of synthetic fuels. By combining hydrogen with captured CO₂, e-kerosene can be produced to help airlines meet new EU blending mandates. Finland’s access to biogenic CO₂, especially from pulp and paper industries, makes this pathway viable. 

Shipping is another major opportunity on the hydrogen strategy. With global decarbonisation rules tightening, ships will need to shift away from fossil marine fuels. Hydrogen-derived fuels like ammonia and methanol are strong candidates. Finland’s port infrastructure and maritime expertise make it well-suited to supply or export these fuels. 

In heavy industry, hydrogen can replace fossil fuels in high-temperature processes, such as those used in metal refining or chemical production. While this requires retrofitting, it also opens the door to deep emissions cuts in sectors where electrification isn't practical. 

Utilities and municipalities also stand to benefit. Hydrogen can be injected into the gas grid, used in combined heat and power plants, or integrated into district heating systems. Waste heat from electrolysers can boost efficiency, while storage capabilities improve grid resilience. 

Finally, clean hydrogen and its derivatives could become an export product. With Germany and other countries looking to import clean fuels, Finland’s proximity and infrastructure give it a logistical advantage. The potential to export hydrogen or value-added products like synthetic fuels adds another layer of economic incentive. 

Broad Challenges: Beyond Winter  

While Finland’s winters pose challenges, especially around electricity demand and equipment durability, the broader obstacles facing its hydrogen strategy are regulatory, financial, and social. 

On the regulatory side, more clarity is still needed, but we are getting there. EU definitions around what counts as “clean hydrogen,” particularly concerning nuclear power and the timing of renewable electricity use, have been recently developed. These definitions affect eligibility for funding and market access. We can say that there are positive steps towards mitigating the lack of most-needed clarity. 

Permitting is another issue. Wind farms, pipelines, and storage facilities all require environmental reviews, land use approvals, and community engagement. Delays can drag out project timelines and deter investors. 

Financially, capital costs are still high. Electrolysers, compressors, storage tanks, and related systems require upfront investment, often before demand is fully locked in. Without clear offtake agreements or subsidies, companies may be reluctant to commit. 

Social licenses are also crucial. While Finland has strong public support for climate action, local opposition to wind farms or industrial projects is not unheard of. Early engagement, transparency, and benefit-sharing will be key. 

Strategic Focus Areas to Maximise Finland’s Hydrogen Strategy 

For Finland to realise the full potential of its hydrogen strategy, several strategic actions must come together. 

First, regulatory clarity is essential. Defining “clean hydrogen” in line with EU expectations, streamlining permitting processes, and ensuring consistent rules for storage and transport will lower risk and speed development. 

Second, infrastructure must align with production. Pipelines, ports, and storage facilities need to connect hydrogen production with end users and export routes. Regional hydrogen valleys, where production, demand, and transport infrastructure are co-located, can reduce costs and complexity. 

Third, hydrogen should be integrated into a broader energy system. Using off-peak nuclear power for electrolysis, co-locating production with industrial heat users, and capturing waste heat for district heating are all ways to improve system efficiency and project economics. 

Fourth, market mechanisms must support early adoption. Instruments like contracts for difference, carbon contracts, or blending mandates can create demand and price stability. Government-backed funding or risk-sharing mechanisms will help de-risk projects. 

Finally, workforce development, R&D, and public engagement will be essential. As the hydrogen economy grows, so will the need for skilled workers, technological innovation, and social acceptance. Finland’s strong education system and engineering culture position it well to lead. 

Finland’s Hydrogen Strategy in Action: Near-Term Milestones & What to Watch 

By 2026, Finland aims to finalise decisions on hydrogen infrastructure routes, permitting frameworks, and funding mechanisms. Clarity on EU classifications, particularly around nuclear power, will be key to unlocking investment. 

By 2030, the country expects to be producing 10% of the EU’s clean hydrogen, with large-scale projects operating across industrial, aviation, and energy sectors. Synthetic fuel production, especially in aviation, is expected to be a high-profile use case. 

Between 2030 and 2035, the focus shifts to optimisation and export. Infrastructure maturity, cost reductions, and market expansion should enable Finland to export clean hydrogen or derivatives to neighbouring markets, particularly Germany and the Baltics. 

Beyond 2035, hydrogen is expected to be fully integrated into Finland’s energy and industrial systems, acting as a cornerstone of its zero-carbon economy. The country could become a model for how a northern, resource-rich nation balances climate goals with security and economic resilience. 

How Stargate Hydrogen can support Finland’s Hydrogen Strategy 

For Finland to succeed in implementing its hydrogen strategy, it will need partners with technical depth, proven innovation, and a clear understanding of the practical challenges involved in producing and scaling clean hydrogen. Stargate Hydrogen brings exactly that. 

Stargate Hydrogen specialises in next-generation alkaline electrolyser technology, designed for efficiency in real-world industrial integrations. Stargate Hydrogen’s systems are engineered to deliver high durability, simple maintenance, and cost-effective hydrogen production. This makes them ideal for the conditions and requirements found in Finland: from cold-climate resilience to high-use demands in industrial applications. 

What sets Stargate Hydrogen apart is the commitment to a long-term partnership focused on end-to-end usability.  

“We don’t just supply electrolysers; we work closely with partners to ensure successful implementation. Whether the project is connected to a district heating plant, an industrial processing site, or a future e-fuel facility, Stargate Hydrogen provides the technology and the technical collaboration needed to match energy profiles, balance capital investment, and deliver long-term reliability.” says Marko Virkebau, CEO.

In regions where wind power is abundant and grid connections are stretched, Stargate Hydrogen’s solutions are tailored to maximise capacity factor and integration with local renewable resources. For applications that require ultra-pure hydrogen, such as ammonia or methanol production, our systems are built to meet high-spec purity standards. Stargate Hydrogen’s experts also help clients in navigating the regulatory and technical frameworks around clean hydrogen classification, enabling Finnish projects to qualify for EU-level funding, incentives, and international certification schemes. 

As Finland accelerates its hydrogen strategy, the need for scalable, dependable, and commercially viable electrolysis systems becomes critical. Stargate Hydrogen is proud to support Finnish companies such as Fortum in making hydrogen not just a strategy, but a success story. 

Stargate Hydrogen is part of the H2 Springboard 

The Finnish hydrogen strategy gains further strength through the H2 Springboard initiative, a next‑generation hydrogen technology development ecosystem led by ABB. 
 
H2 Springboard is designed for companies with a collaborative mindset to demonstrate the viability of the hydrogen economy and capture full business potential. The initiative brings together grid operators (electricity, H₂, CO₂), industrial end‑users, system integrators, technology developers, investors, and research institutions, with the goal of developing and validating hydrogen solutions as close to real markets as possible.   

With a project portfolio exceeding EUR 150 million, H2 Springboard is targeting a meaningful reduction in the levelised cost of hydrogen. In addition, the Finnish government’s innovation funding organisation Business Finland backs the ecosystem with a further EUR 50 million in support. In the Finnish hydrogen strategy, Funding is allocated on the basis of collaborative projects’ estimated impact and alignment with the shared roadmap established by the ecosystem.   

Within this setting, Stargate Hydrogen’s participation in the H2 Springboard ecosystem becomes a strategic asset. By partnering in H2 Springboard alongside industry, research and investment players, Stargate Hydrogen is positioned to help Finnish companies decarbonise, leveraging the collaborative environment to bring hydrogen‑based solutions closer to industrial deployment. This aligns directly with the wider Finnish hydrogen strategy of transitioning core industries toward low‑carbon hydrogen value chains. 

Stargate Hydrogen's first projects in Finland. 

Stargate Hydrogen is actively advancing Finland’s hydrogen strategy through two major projects that demonstrate its technology at both pilot and commercial scale. The first is a 1 MW electrolyser installation for Fortum, located near the Loviisa nuclear power plant.  

The second is a partnership with OX2 in the Åland Islands. These projects reflect Stargate Hydrogen’s focus: enabling near-term decarbonisation and proving its systems in real operating conditions. 

The Fortum project is based at the Kalla hydrogen production test centre and serves as a platform to validate Stargate’s alkaline electrolyser technology. Fortum selected Stargate’s Gateway200 electrolyser system to convert grid electricity and water into clean hydrogen, which will then be distributed to industrial customers. Construction started in late 2024, with commissioning expected by the end of 2025. This pilot project, backed by Fortum’s own R&D budget, is a key step toward integrating hydrogen into nuclear‑adjacent infrastructure and grid‑connected operations. 

Watch the video of Fortum Electrolyser deployment: 

The Åland Islands project, developed in collaboration with renewable energy company OX2, scales up the ambition significantly. As part of this long-term strategic partnership, Stargate will supply Aurora 10 MW electrolyser modules, eventually reaching 50 MW of total capacity. The hydrogen produced will serve local industry, transport, and maritime operations through green hydrogen “corridors.” The project positions Åland as a key node in Finland’s green energy map and will be one of the largest hydrogen assets in the Nordics when completed. 
 

Both projects play distinct roles in Stargate’s broader hydrogen strategy. The Fortum pilot is a controlled, data-rich environment ideal for testing and refining hydrogen systems, while the Åland project provides an opportunity to deliver hydrogen at an industrial scale. Together, they illustrate Stargate’s readiness to move from R&D to execution, helping Finnish companies transition toward cleaner energy solutions. These projects also reinforce Finland’s position as a testbed for scalable, real-world hydrogen technologies. 

Conclusion: The Stakes & The Opportunity 

Finland’s hydrogen strategy is not just a policy framework; it’s a vision for the future. It aligns climate ambition with energy independence, industrial opportunity, and system resilience. It recognises the country’s unique strengths, its renewables, nuclear fleet, industrial base, and engineering know-how, and turns them into a plan for long-term sustainability and prosperity. 

Stargate Hydrogen demonstrates that its technology and partnerships are ready for deployment. As demand for decarbonisation grows across the Nordics, Stargate Hydrogen is positioned to support industries looking for practical, tested, and locally engineered hydrogen solutions. 

The challenges are real. But with coordinated action, smart investment, and stakeholder alignment, Finland has everything it needs to lead Europe’s hydrogen transition. The next decade will determine whether hydrogen becomes a competitive advantage or a missed opportunity.