BalticSeaH2: From hydrogen ambitions to an integrated regional market

Energy Valley is a partner in BalticSeaH2, a major European collaboration working to establish a large-scale, cross-border Hydrogen Valley in the Baltic Sea region. The project connects hydrogen production, distribution, infrastructure, markets and end users, with the aim of supporting investment, industrial deployment and the development of integrated hydrogen value chains.

The main Hydrogen Valley connects Southern Finland and Estonia, while several Connected Valleys—including the Norwegian ecosystem represented by Energy Valley—contribute regional experience, projects and market perspectives.

Running from June 2023 to May 2028, BalticSeaH2 brings together partners from nine countries. The project includes more than 20 use cases and more than 10 investment cases covering hydrogen production, transport, storage and applications in industry, energy and mobility.

What has the project achieved so far?

BalticSeaH2 has now completed more than half of its five-year project period. Several tangible results and milestones have already been reported.

During the first reporting period, the project established a common monitoring structure for its hydrogen use cases and developed a performance evaluation handbook for the BalticSeaH2 Valley. The consortium also reported that projects associated with the initiative had secured EUR 78 million in additional external funding during the period, bringing the total secured financing for relevant projects in the region to EUR 155 million.

A pre-feasibility study for the Nordic-Baltic Hydrogen Corridor has also been completed by transmission system operators from Finland, Estonia, Latvia, Lithuania, Poland and Germany. The examined the potential for transporting renewable hydrogen across the region and represents an important step towards coordinated cross-border infrastructure planning.

Individual investment and development cases have also progressed. Helen has made a final investment decision on the 3H2 Helsinki Hydrogen Hub, while work has continued on hydrogen production, e-fuels, refuelling infrastructure and industrial applications in several participating regions.

The project has also:

• developed a Proof of Concept for a digital hydrogen marketplace, based on stakeholder interviews and validation sessions;
• produced design-relevant research on materials, welds and lifetime assessment for safe hydrogen pipelines;
• assessed the potential for repurposing selected natural-gas pipelines for hydrogen transmission;
• conducted analysis of economic, environmental and societal impacts; and
• strengthened cooperation between hydrogen regions, industrial actors, research organisations and infrastructure developers.

These results demonstrate that BalticSeaH2 is addressing not only hydrogen technologies, but also the infrastructure, market mechanisms, financing conditions, safety requirements and regional cooperation needed to create functioning hydrogen markets.

The next phase: market development and replication

The project is now entering a phase with increased emphasis on market analysis, regional growth opportunities and the transfer of experience between hydrogen regions.

Within Work Package 7, which focuses on impact creation, replication and knowledge sharing, work is continuing on:

• a Baltic Sea Region hydrogen market and opportunity analysis towards 2035;
• strategic growth and scaling analyses;
• guidelines and good practices for hydrogen-region development;
• safety planning and knowledge sharing; and
• a Replication Toolkit for regions seeking to establish or expand hydrogen value chains.

The Replication Toolkit will bring together practical methods and experience relating to market readiness, stakeholder engagement, infrastructure, financing, governance, environmental assessment and regional implementation.

Energy Valley is strengthening the Norwegian contribution

Energy Valley is updating its mapping of Norwegian hydrogen stakeholders, projects and market opportunities. The work covers the full value chain—from production and distribution to industrial users, maritime transport, technology suppliers, research organisations, investors and public-sector stakeholders.

The mapping will support BalticSeaH2’s market analysis and help identify Norwegian experience that may be relevant to other European hydrogen regions.

Key topics include:

• developments in Norwegian hydrogen production and demand;
• industrial and maritime applications;
• infrastructure and logistics requirements;
• financing, commercial models and risk allocation;
• regulatory and market barriers;
• experience from operational and investment-decided projects; and
• opportunities for scaling and regional value creation.

Energy Valley will also identify and document potential Norwegian replication cases. The purpose is to understand what has worked, which challenges projects have encountered and which lessons may be transferable to other regions.

Market dialogue during autumn 2026 and 2027

Energy Valley plans targeted dialogue with companies, projects, research organisations and public-sector stakeholders during autumn 2026 and into 2027. This dialogue will help validate the market picture and capture practical experience from the development, financing and operation of hydrogen projects.

The findings will contribute to:

• the BalticSeaH2 market and opportunity analysis;
• regional value-scaling work;
• the BalticSeaH2 Replication Toolkit; and
• knowledge sharing between Norwegian and European hydrogen stakeholders.

We welcome input from Energy Valley members

Does your organisation have a hydrogen project, technology, market need or relevant experience that could contribute to BalticSeaH2? Or, are you planning to apply for EU-funding?

We are particularly interested in documented experience relating to market development, industrial applications, infrastructure, financing, safety, regulation and the scaling of hydrogen projects.

By contributing to this work, Energy Valley members can help ensure that Norwegian perspectives are represented in the European collaboration—and that the knowledge developed through BalticSeaH2 is relevant and useful to Norwegian industry.

Please contact Energy Valley if you would like to contribute to the mapping, participate in the market dialogue, present a potential replication case or would like EU counselling.