Nordic-Baltic Hydrogen Corridor enters feasibility phase
The European Gas Transmission System Operators (TSOs) of Finland, Estonia, Latvia, Lithuania, Poland and Germany’s ONTRAS are starting the feasibility phase for the Nordic-Baltic Hydrogen Corridor (NBHC). After having successfully completed the pre-feasibility study in 2024, the six TSOs plan to start feasibility studies across the respective countries. These studies will focus on various crucial aspects including pipeline routing, compressor stations planning, financial and economic analysis, environmental and safety permitting issues as well as investigations on an implementation timeline. These studies are expected to run until mid-2026.
In addition to these studies the involved TSOs aim to complete several cross-border analyses to further substantiate the NBHC planning on an overall project level based on the outcomes from the aforementioned studies. These studies involve project coordination, technical and commercial alignment, and customer and stakeholder engagement. The cross-border studies are expected to run until the end of 2026.
Before the feasibility studies are set to commence, the TSOs will conduct a joint commercial principles study. Based on the results of the pre-feasibility study, the commercial principles study starting in the beginning of 2025 will investigate the preliminary principles for a cross-border cost allocation. Its goal is also to develop mutually suitable principles of a commercial model and of revenue models (tariff models) to ensure financial viability for all involved TSOs.
Together, these thorough analyses will build a path towards NBHC’s progression as a safe, reliable and cost-efficient transport route for renewable hydrogen connected to the future European hydrogen network in Central Europe.
Uldis Bariss, Chairman of the Board of Conexus, emphasizes that the Nordic-Baltic Hydrogen Corridor project demonstrates not only Latvia's interest in regional integration and capacity to implement cross-border projects, but also its ability to increase the diversification of energy sources in practice.
Continues U. Bariss: "With this project, Latvia, together with its foreign partners, is working towards a new energy future. The hydrogen infrastructure will transport renewable hydrogen between the six countries, which is crucial for achieving Europe's decarbonization targets and for each country's individual energy plans. These are also new business opportunities for local entrepreneurs to participate in building the hydrogen economy, so we hope that this project will bring new investment to Latvia. Now that the project has entered the next stage of its development and detailed analysis has started in each participating Member State, we are working on the project details that will help develop this ambitious project."
In April 2024, the NBHC was granted the status of the Project of Common Interest (PCI) by the European Commission as part of the ‘Baltic Energy Market Interconnection Plan for Hydrogen’ (BEMIP Hydrogen). In October 2024, the TSOs applied for Connecting Europe Facility (CEF) funding with results expected for Q1 2025.
The NBHC is a joint project of six European TSOs: Finland’s Gasgrid Vetyverkot Oy, Estonia’s Elering, Latvia’s Conexus Baltic Grid, Lithuania’s Amber Grid, Poland’s GAZ-SYSTEM, as well as Germany’s ONTRAS.