Gas TSOs conclude pre-feasibility study on Nordic-Baltic Hydrogen Corridor

Business Developments & Projects

Gas transmission system operators (TSOs) of Finland, Estonia, Latvia, Lithuania, Poland and Germany have completed a pre-feasibility study on the Nordic-Baltic Hydrogen Corridor (NBHC).

Illustration of the planned Nordic-Baltic Hydrogen Corridor. Courtesy of Amber Grid

According to Estonia’s TSO Elering, this study, initiated in January 2024, defines the key conditions for implementing the NBHC, aimed at transporting renewable hydrogen between the six countries.

“The study provides a comprehensive framework covering the technical, legal, organizational, and economic aspects necessary to realize the hydrogen corridor, which will play a crucial role in achieving the European Union’s decarbonization goals with hydrogen produced and further supplied within the EU territory,” Elering noted.

The Nordic-Baltic region is said to provide renewable hydrogen potential identified within the pre-feasibility study at the amount of approximately 27.1 million tons (Mt) of renewable hydrogen production (based on combined onshore and offshore wind and solar) by 2040. As per Elering, this creates a large hydrogen market creation and export potential towards continental Europe which the NBHC aims to address. 

By 2040, the corridor is projected to transport up to 2.7 million tons (Mt) of renewable hydrogen annually between the countries. The pre-feasibility study indicated that the NBHC can be one of the first operational cross-border hydrogen pipelines in Europe. The pipeline is currently planned to be 48 inches (1,200 millimeters (mm)) in diameter, with several compressor stations and spanning approximately 2,500 kilometers (km).

“With our joint project, we, as transmission system operators, are creating the basis for the market ramp-up of the hydrogen economy in six European member states. The cross-border, organic cooperation between producers, transporters and consumers will be an important building block for the success of the energy transition in Europe,” the project partners claimed.

Kalle Kilk, Elering’s Chairman of the Board, commented: “The hydrogen infrastructure creates the possibility of long-term storage of renewable energy for periods when the production of renewable electricity is low, and it is necessary to produce electricity back from hydrogen, contributing to the security of supply of the electricity system. Additional connections with neighboring countries will increase energy security and enable Estonia and Europe in general to reduce dependence on energy imports from third countries.”

Moving forward, based on the pre-feasibility study results, the TSOs plan to commence work on the feasibility study covering the project‘s detailed technical analysis, commercial and economic assessment as well as the detailed implementation timeline of the NBHC.

To note, this project is considered an important component in Europe’s transition to a sustainable and decarbonized energy system, supporting the EU’s climate goals and enhancing regional energy cooperation. As reported, the corridor could reduce carbon emissions by up to 37 million tons of CO2 equivalent per year by 2050. It is expected to enhance energy security and supply diversity in the region and Europe, connecting indigenous renewable hydrogen production to existing and new demand centers, as well as contribute to the decarbonization of hard-to-abate sectors. 

In April 2024, the NBHC was publicly granted the status of the project of common interest (PCI) by the European Commission as part of the Baltic Energy Market Interconnection Plan for Hydrogen (BEMIP Hydrogen). The status enables benefits such as eligibility to apply for EU project funding.

The international tender for a pre-feasibility study for the NBHC was launched at the beginning of 2023. Lithuanian Amber Grid launched it on behalf of its project partners, Gasgrid Finland (Finland), Elering (Estonia), Conexus Baltic Grid (Latvia), GAZ-SYSTEM (Poland) and ONTRAS (Germany).