Nordic-Baltic Hydrogen Corridor
Gaz-System, the operator of the national gas transmission system, announced on Thursday that European Gas Transmission System Operators (TSOs) are starting work on a feasibility study Nordic-Baltic Hydrogen Corridor (NBHC). It is a joint project of six European operators: Gasgrid vetyverkot Oy from Finland, Elering from Estonia, Conexus Baltic Grid from Latvia, Amber Grid from Lithuania, Gaz-System from Poland and ONTRAS from Germany.
After completing the preliminary feasibility study in 2024, the operators will start working on project feasibility studies at the national level, Gaz-System added. He explained that they would focus on key aspects, including the gas pipeline route, planning the location of the compressor station, financial and economic analysis, issues related to environmental permits and safety, as well as issues related to the project implementation schedule. According to the operator, the works will last until mid-2026.
Based on the results of national feasibility studies, the operators will conduct cross-border studies, which will be the basis for further development of the project. Gaz-System indicated that cross-border analyzes will include: development of a common technical definition of the project, its commercial analysis, as well as the issue of involvement of recipients and stakeholders. Cross-border analyzes are scheduled to be completed by the end of 2026.
CO2 reduction and business development
European operators assessed that NBHC potential is not only limited to reducing carbon emissions in participating countries, but can also promote business development and support the emergence of a new hydrogen economy in Europe.
Gaz-System announced that before feasibility studies begin, transmission system operators will conduct them in early 2025 joint business analysis of the project. The idea is to analyze a preliminary approach to a possible formula for cross-border cost allocation, as well as to develop a business and tariff model that will ensure the financial viability of the project for all involved transmission operators.
“Crucial Importance”
“The Nordic-Baltic Hydrogen Corridor project is of key importance to us because it allows us to combine the production capacity of green hydrogen with consumption needs in several countries where the industry may need it in the decarbonization process,” emphasized Sławomir Hinc, president of Gaz-System, quoted in the information. “In Poland, it will support the effective planning of national hydrogen transmission networks and the location of future international hydrogen connections. – he added.
Hinc noted that the final feasibility study, covering technical, economic and legal aspects, is a necessary condition for transmission operators to make investment decisions.
An important element of decarbonization
Gaz-System noted that the NBHC project is an important element of Europe’s transition to a sustainable and decarbonized energy system, supporting EU climate goals and strengthening regional energy cooperation. He added that The Nordic-Baltic Hydrogen Corridor will support the goals of the European Union on decarbonization through the integration of the renewable hydrogen industry in six Member States. By 2050, the Nordic-Baltic Hydrogen Corridor will reduce carbon dioxide emissions by up to 37 million tons of CO2 equivalent per year.
The operator reminded that in April 2024 The European Commission has granted NBHC Project of Common Interest status (Project of Common Interest – PCI) as part of the “Baltic States Hydrogen Energy Market Interconnection Plan” (BEMIP Hydrogen). He added that in October this year transmission system operators have submitted applications for funding under the Connecting Europe Facility (CEF), and the results of this procedure are expected in the first quarter of 2025. (PAP)
