Nordic-Baltic Hydrogen Corridor enters feasibility phase
The European Gas Transmission System Operators (TSOs) of Finland, Estonia, Latvia, Lithuania, Poland and Germany’s ONTRAS are starting the feasibility phase for the Nordic-Baltic Hydrogen Corridor (NBHC).
In addition to these studies the involved TSOs aim to complete several cross-border analyses to further substantiate the NBHC planning on an overall project level based on the outcomes from the aforementioned studies. These studies involve project coordination, technical and commercial alignment, and customer and stakeholder engagement. The cross-border studies are expected to run until the end of 2026.
- We are thrilled to expedite this important collaboration and to make such good progress on the realization of the NBHC project. Not only has this project the potential to significantly reduce carbon emissions of the participating countries, but it can also promote business growth and support the ramp-up of a completely new hydrogen economy in Europe - said the involved partners.
Before the feasibility studies are set to commence, the TSOs will conduct a joint commercial principles study. Based on the results of the pre-feasibility study, the commercial principles study starting in the beginning of 2025 will investigate the preliminary principles for a cross-border cost allocation. Its goal is also to develop mutually suitable principles of a commercial model and of revenue models (tariff models) to ensure financial viability for all involved TSOs.
Together, these thorough analyses will build a path towards NBHC’s progression as a safe, reliable and cost-efficient transport route for renewable hydrogen connected to the future European hydrogen network in Central Europe.
- The Nordic-Baltic Hydrogen Corridor project is of paramount importance to us, as it enables the matching of green hydrogen production capacity with demand in several countries where it is essential for the industry decarbonisation process. In Poland, for example, it will support efficient planning of national hydrogen transmission networks and the location of future cross-border hydrogen connections. A final feasibility study, including technical, economic and legal aspects of the project, is an essential precondition for investment decisions to be made by transmission operators. I am glad that within the NBHC project we have established an excellent collaboration with our partners which enables us to build a solid foundation for the energy transition in the Baltic Sea region and Central Europe - said Sławomir Hinc, CEO of GAZ-SYSTEM.
The NBHC project is 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. The NBHC will significantly support 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. The corridor will 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 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). In October 2024, the TSOs applied for Connecting Europe Facility (CEF) funding with results expected for Q1 2025.
The NBHC is a joint project of six European TSOs: Finland’s Gasgrid vetyverkot Oy, Estonia’s Elering, Latvia’s Conexus Baltic Grid, Lithuania’s Amber Grid, Poland’s GAZ-SYSTEM, as well as Germany’s ONTRAS.
Find out more about Nordic-Baltic Hydrogen Corridor.
