Financial viability of producing hydrogen in windfarms in the Nordic region

Abstract: With the perspective of a growing hydrogen market that responds to the energy sector requirements for a carbon-free fuel and/or storage method, analyzing the financial viability of producing green hydrogen in the Nordic region is of great importance to understand the possibilities of local supply and the role that the strongly present wind industry can have in it.  Additionally, the possibility of the construction of a dedicated hydrogen pipeline connecting Sweden, Finland, Denmark, and possibly other countries in the Nordic area, changes the previously analyzed scenarios of only local demand, close to production; incorporating this infrastructure into the simulations will shed light upon the possibilities for a Nordic hydrogen market. Projects for producing hydrogen and delivering it to the main pipeline are profitable, according to the designed model, market assumptions, and estimations. A 2030 outlook scenario with several technological improvements shows significant opportunities for the energy sector to transition into green hydrogen production. Ammonia incorporation increases costs that with current technologies and margins make mostly unviable developing projects with this structure within the Nordic region.