The Baltic Sea is set to become a blueprint for Europe’s hydrogen future, as the BalticSeaH2 project kicks off, aiming to create the first large-scale cross-border hydrogen valley between Southern Finland and Estonia. This initiative, backed by a €33 million budget co-funded by the European Union, brings together 40 partners from nine countries, underscoring the international nature of the hydrogen economy.
BalticSeaH2 is not just about cutting emissions; it’s about bolstering energy security. Europe’s reliance on imported fossil fuels has left it vulnerable to global price fluctuations and geopolitical tensions. By connecting local hydrogen production and use, the project reduces this dependency and strengthens the region’s security of supply. “The hydrogen valley is not only about new technology, it is about building new value chains, new infrastructures and the entire economic system,” says Jatta Jussila, CEO of CLIC Innovation, the Finnish open innovation cluster coordinating the project.
The hydrogen valley concept is a regional system where hydrogen is produced, distributed, and used across different sectors in an integrated way. These ecosystems connect renewable electricity with end uses in energy, transport, and industry, turning hydrogen into a practical tool for cutting emissions and our dependency on fossil feedstock. For Europe, such initiatives are becoming central to both climate action and long-term security of supply.
BalticSeaH2 is expected to trigger several billion euros of follow-up investments in infrastructure, industrial plants, and related services. The project includes around 20 practical investments in the main valley, covering the whole chain from producing hydrogen through electrolysis to using it in energy systems, industry, and transport. One focus is the production of green ammonia, which has a dual role as a key ingredient in fertilisers and an efficient way to transport hydrogen.
However, these value chains alone are not enough. To build a hydrogen economy, industries need clear demand signals and predictable rules. Large follow-up investments in infrastructure and production capacity depend on a regulatory environment that gives confidence in future markets. BalticSeaH2 shows how demand can be aggregated across borders, but a strong role from the EU is essential to provide the framework that makes this possible.
The impact of BalticSeaH2 will extend far beyond Finland and Estonia. By demonstrating how a hydrogen valley can be developed across borders, it provides valuable lessons for other regions in Europe. Cross-border cooperation is particularly important for hydrogen, as markets and infrastructure do not stop at national borders. Shared standards, harmonised regulation, and coordinated investments are needed to scale up hydrogen production and use.
This project could shape the development of the sector by highlighting the importance of regional cooperation and the need for a coordinated hydrogen strategy at the EU level. It underscores the competitiveness dimension, as hydrogen-based value chains are emerging globally, and Europe needs to ensure that its industries remain attractive locations for investment. A coordinated hydrogen strategy helps Europe not only meet climate goals but also maintain industrial leadership.
The BalticSeaH2 project is a significant step towards a cleaner and more secure future, linking energy and industry and keeping security of supply at the centre. It shows what a hydrogen valley can mean in practice, reducing Europe’s dependence on fossil imports, creating new opportunities for industry, and supporting the transition to a sustainable economy.