In the near future, Eesti Energia aims to embrace green hydrogen, produced from renewable energy sources, as a key player in advancing its chemical industry. Despite its potential, the current cost of green hydrogen makes it economically unviable for applications like public transport without state support. Eesti Energia is optimistic that as renewable energy progresses, the production and utilization of hydrogen will become more cost-effective.
Over the upcoming years, Eesti Energia plans to construct two hydrogen and gas power plants to cater to peak energy demands. However, this is just a fraction of the company's broader vision for hydrogen.
While Eesti Energia envisions a significant role for green hydrogen, the completion of the new power plants will initially rely on industrial hydrogen during a transitional phase. The scarcity of available renewable energy at present has led to global high demand and prices for green hydrogen.
Lauri Karp, Head of Chemical Industry Strategy and Transformation at Eesti Energia, explained, "The possibility of using industrial hydrogen, which is carbon-neutral and shares characteristics with green hydrogen, arises during the transition period."
Blue hydrogen, derived from fossil fuels with captured CO2 emissions, is currently more economical than green hydrogen, which is produced through electrolysis using renewable energy. Karp suggests starting with blue hydrogen until there is sufficient renewable energy capacity in the Baltic Sea region, paving the way for a shift to green hydrogen.
Regarding hydrogen production in Estonia, Karp noted that large-scale production is not expected in the coming years due to current grid constraints. However, the emergence of extensive green hydrogen production capacity is anticipated in the next decade.
Eesti Energia is exploring the application of hydrogen in transport and has sought co-financing from the Estonian Environmental Investment Center to establish a green hydrogen integrated circuit. This project aims to produce hydrogen for the transport sector, covering the entire value chain from production to consumption.
Karp emphasized that hydrogen will play a significant role in the chemical industry's development, serving as a major end user. The company is considering the utilization of green hydrogen produced within the group for its chemical industry needs, while remaining open to market purchases based on suitability and pricing.
In conclusion, Eesti Energia envisions a transformative role for hydrogen, not only in energy production but also as a cornerstone in the evolution of Estonia's chemical industry and broader economic landscape.
