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Regional gas TSOs sign MoU to accelerate development of hydrogen infrastructure

A Memorandum of Understanding (MoU) which aims to coordinate and facilitate hydrogen infrastructure and foster hydrogen market development in the Baltic Sea region, was signed by the nine gas transmission system operators (TSOs). The parties to the MoU are GAZ-SYSTEM (Poland), Elering (Estonia), Energinet (Denmark), Gasgrid Vetyverkot (Finland), Amber Grid (Lithuania), Nordion Energi (Sweden), GASCADE and ONTRAS (Germany) and Conexus Baltic Grid (Latvia).

The purpose of the regional cooperation based on the MoU is to coordinate gas TSOs’ efforts related to the roll-out of hydrogen transmission and storage infrastructure in the region. In addition, the group of Baltic TSOs will share information about the developments in the hydrogen market and projects related to renewable hydrogen production and demand. The operators also plan to collaborate with European and national institutions as well as market participants, including under the umbrella of the EU’s Baltic Energy Market Interconnection Plan (BEMIP) initiative.

“The Baltic Sea offers great potential for industrial-scale production of renewable hydrogen, thus providing the security of supply of this energy carrier to the regional markets striving to become carbon neutral,” said Sławomir Hinc, President of GAZ-SYSTEM Management Board. “GAZ-SYSTEM, together with fellow gas transmission system operators, stands ready to contribute to this process by coordinating hydrogen infrastructure development and sharing best practices with the Memorandum signatories.”

According to GAZ-SYSTEM’s press statement, the Baltic Sea region has vast renewable energy potential and it may thus provide up to 45 per cent of the clean hydrogen production by 2030 as outlined in the European Commission’s communication on the REPowerEU plan. In particular, the Baltic Sea region holds substantial potential for onshore and offshore wind energy which could be used for hydrogen production and thus contribute to accelerating the up-take of a hydrogen market shortly.

Therefore, Baltic gas transmission system operators are joining forces to develop new hydrogen pipeline infrastructure and to unlock the potential of hydrogen production. In addition, the target of the regional cooperation is to deliver hydrogen from supply-rich regions to demand centres.

Using the signed MoU, the regional gas TSOs pledge their continuous support and contribution to the Marienborg declaration signed by the prime ministers of the Baltic Sea countries in 2022. The declaration is aimed at exploring joint cross-border renewable energy projects and identifying infrastructure needs in the Baltic Sea region. This new initiative will also pursue European climate and energy objectives by untapping the potential of indigenous renewables to decarbonise European industries and reduce Europe’s dependency on imported Russian fossil fuels. In addition, by joining forces, gas TSOs wish to facilitate the creation of a competitive and liquid hydrogen market underpinned by numerous suppliers and users of hydrogen in the region.

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