Hydrogen over the Horizon : The emerging role of the Nordic region in a European hydrogen economy
Bauer, Fredric LU
; Finkill, Guy
LU
; Johansson, Bengt
LU
and Åhman, Max
LU
(2025)
- Abstract
- The emergence of a hydrogen economy in Europe and the Nordic region represents one important pathway to decarbonization of critical sectors. This development is and will be shaped by distinctive national strategies that do not fully converge around shared objectives. The landscape reveals a complex interplay of technological innovation, industrial policy, and environmental ambition.
Each Nordic country has developed a unique hydrogen strategy, although not formalized by all governments, reflective of its national capabilities and economic priorities. Denmark, Finland, and Sweden have predominantly oriented their approaches toward green hydrogen production through electrolysis, closely integrating hydrogen development with broader... (More) - The emergence of a hydrogen economy in Europe and the Nordic region represents one important pathway to decarbonization of critical sectors. This development is and will be shaped by distinctive national strategies that do not fully converge around shared objectives. The landscape reveals a complex interplay of technological innovation, industrial policy, and environmental ambition.
Each Nordic country has developed a unique hydrogen strategy, although not formalized by all governments, reflective of its national capabilities and economic priorities. Denmark, Finland, and Sweden have predominantly oriented their approaches toward green hydrogen production through electrolysis, closely integrating hydrogen development with broader electrification strategies. Norway distinguishes itself through a more diversified approach, leveraging its substantial natural gas resources to explore both green and blue hydrogen. The national hydrogen initiatives concentrate on sectors where traditional electrification presents significant challenges. Synthetic fuels for maritime and aviation applications and energy-intensive industrial processes—particularly steel production—emerge as the primary target domains. This targeted approach underscores an understanding that hydrogen should not be viewed as a universal energy solution, but rather as a tool best deployed with precision where maximum economic and environmental benefits can be realized, and other options are scarce.
Governmental roles in this emerging ecosystem are characterized more by enablement than direct intervention. Policy frameworks are being carefully constructed to support research and innovation, build knowledge and capacity along key value chains, and facilitate cross-sector and international collaborations. The state is positioning itself as a facilitator, designing regulatory structures that can support private sector innovation. The emphasis on the export potential for hydrogen is a differentiating domain, with Denmark and Norway emerging as the countries most strongly viewing this as a central opportunity. However, the primary emphasis remains on domestic value creation, with hydrogen viewed as a mechanism for transforming domestic industrial sectors.
The current project landscape reveals both promise and complexity. Across the Nordic countries, 224 hydrogen projects have been identified, with 57 having reached final investment decision. Yet, significant uncertainty persists regarding project realization, as evidenced by recent delays and cancellations of high-profile initiatives. Critical challenges threaten to delay development further. Infrastructural limitations in electricity production and transmission, complex regulatory environments, inefficient distribution networks, and the absence of credible offtake agreements constitute substantial barriers. It is thus highly questionable if the envisioned potential for producing hydrogen in the Nordic region for export to continental Europe can be fulfilled, and in fact if there is even a matching interest in the Nordic countries to do so.
The Nordic hydrogen strategies reflect a pragmatic, incremental approach to energy transition. The region's hydrogen ambitions will ultimately depend on rapidly accelerating infrastructure development, streamlining regulatory processes, and maintaining competitive investment environments. While the region possesses significant renewable energy resources, technological capabilities, and strategic positioning, the path to a robust hydrogen economy remains complex and uncertain. The next few years will be crucial in determining whether the Nordic countries can transform their hydrogen potential into a meaningful low-carbon energy strategy.
(Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/5a137b10-9d51-49b1-a8e5-bec01abcd1e9
- author
- Bauer, Fredric
LU
; Finkill, Guy
LU
; Johansson, Bengt
LU
and Åhman, Max
LU
- organization
- publishing date
- 2025-03-18
- type
- Book/Report
- publication status
- published
- subject
- pages
- 51 pages
- publisher
- Wuppertal Institute fur Klima Umwelt Energie GmbH
- project
- Influence of a Scandinavian hydrogen strategy on the development of a northern German hydrogen economy
- language
- English
- LU publication?
- yes
- id
- 5a137b10-9d51-49b1-a8e5-bec01abcd1e9
- date added to LUP
- 2025-03-14 09:37:45
- date last changed
- 2025-04-04 15:14:20
@techreport{5a137b10-9d51-49b1-a8e5-bec01abcd1e9,
abstract = {{The emergence of a hydrogen economy in Europe and the Nordic region represents one important pathway to decarbonization of critical sectors. This development is and will be shaped by distinctive national strategies that do not fully converge around shared objectives. The landscape reveals a complex interplay of technological innovation, industrial policy, and environmental ambition.<br/><br/>Each Nordic country has developed a unique hydrogen strategy, although not formalized by all governments, reflective of its national capabilities and economic priorities. Denmark, Finland, and Sweden have predominantly oriented their approaches toward green hydrogen production through electrolysis, closely integrating hydrogen development with broader electrification strategies. Norway distinguishes itself through a more diversified approach, leveraging its substantial natural gas resources to explore both green and blue hydrogen. The national hydrogen initiatives concentrate on sectors where traditional electrification presents significant challenges. Synthetic fuels for maritime and aviation applications and energy-intensive industrial processes—particularly steel production—emerge as the primary target domains. This targeted approach underscores an understanding that hydrogen should not be viewed as a universal energy solution, but rather as a tool best deployed with precision where maximum economic and environmental benefits can be realized, and other options are scarce.<br/><br/>Governmental roles in this emerging ecosystem are characterized more by enablement than direct intervention. Policy frameworks are being carefully constructed to support research and innovation, build knowledge and capacity along key value chains, and facilitate cross-sector and international collaborations. The state is positioning itself as a facilitator, designing regulatory structures that can support private sector innovation. The emphasis on the export potential for hydrogen is a differentiating domain, with Denmark and Norway emerging as the countries most strongly viewing this as a central opportunity. However, the primary emphasis remains on domestic value creation, with hydrogen viewed as a mechanism for transforming domestic industrial sectors. <br/><br/>The current project landscape reveals both promise and complexity. Across the Nordic countries, 224 hydrogen projects have been identified, with 57 having reached final investment decision. Yet, significant uncertainty persists regarding project realization, as evidenced by recent delays and cancellations of high-profile initiatives. Critical challenges threaten to delay development further. Infrastructural limitations in electricity production and transmission, complex regulatory environments, inefficient distribution networks, and the absence of credible offtake agreements constitute substantial barriers. It is thus highly questionable if the envisioned potential for producing hydrogen in the Nordic region for export to continental Europe can be fulfilled, and in fact if there is even a matching interest in the Nordic countries to do so. <br/><br/>The Nordic hydrogen strategies reflect a pragmatic, incremental approach to energy transition. The region's hydrogen ambitions will ultimately depend on rapidly accelerating infrastructure development, streamlining regulatory processes, and maintaining competitive investment environments. While the region possesses significant renewable energy resources, technological capabilities, and strategic positioning, the path to a robust hydrogen economy remains complex and uncertain. The next few years will be crucial in determining whether the Nordic countries can transform their hydrogen potential into a meaningful low-carbon energy strategy.<br/>}},
author = {{Bauer, Fredric and Finkill, Guy and Johansson, Bengt and Åhman, Max}},
institution = {{Wuppertal Institute fur Klima Umwelt Energie GmbH}},
language = {{eng}},
month = {{03}},
title = {{Hydrogen over the Horizon : The emerging role of the Nordic region in a European hydrogen economy}},
url = {{https://lup.lub.lu.se/search/files/211619862/hyBit_report-WI-Lund-HydrogenOverTheHorizon_20250311.pdf}},
year = {{2025}},
}