The Climate Leadership Coalition, which develops business solutions for climate change, has joined the European Clean Hydrogen Alliance and is launching a Power-to-X challenge, establishing a sector integration team to develop the challenge.

“P2X technology will play a major role in modernizing the energy system and industrial production so that they generate zero emissions and complement existing solutions. P2X technology can use electricity to produce hydrogen, for example, which can continue to be used to make low-carbon steel, transport fuels, fertilizers and other chemicals and proteins. Sector integration and hydrogen production will play a key role in achieving the EU’s energy and climate goals. The challenge aims to bring industrial-scale P2X projects to the feasibility study phase. The first project to be developed is a Power-To-Fuel project, the purpose of which is to provide data on the possibilities of large-scale production of synthetic fuels for the needs of the transport sector in Finland,” says Jouni Keronen, CEO of CLC.

The team will aim to make CLC members and partners aware of the various measures to reduce emissions and of the business opportunities made possible by sector integration. The team will also draw up an assessment of the long-term opportunities of sector integration as well as policy measures that could accelerate the development. CLC announced the project during a webinar that it hosted on Tuesday; the topics discussed included energy sector integration, the hydrogen economy, and carbon-free steel production based on the plans of the EU, Germany and Finland.

The speakers at the seminar were Antonio Lopez-Nicolas, Deputy Head of Unit Renewables Policy, DG Energy, European CommissionPeter Röttgen, VP, Public Affairs Germany at Fortum; Harri Leppänen, Director, Environment and Safety at SSAB; Timo Huhtisaari, Director, Sustainability & Future Business at St1 Nordic, and Jorgo Chatzimarkakis, Secretary General of Hydrogen Europe.

Key messages delivered by the event’s speakers are presented below.

Peter Röttgen, VP, Public Affairs Germany, Fortum: ”With the new Hydrogen strategy, Germany is sending a clear signal that hydrogen is playing a very important role in the German energy transition. The German government also associates hydrogen with an important innovative and economic development potential. It is clear that Germany’s need for hydrogen, especially for the decarbonization of industry, is very big and national production will not be sufficient. Therefore, the German hydrogen strategy also includes the establishment of an import structure, which is particularly interesting for Finland as a hydrogen producer.” Germany plans to take the first 5 GW of green hydrogen capacity online before 2030, and another 5 GW in 2035-2040. The use of hydrogen will initially begin in the industrial sector and the Government is supporting the market ramp up with a stimulus package of 9 billion euros”.

Harri Leppänen, Director of Environment, SSAB: “To succeed, our project needs sufficient carbon price and long-term predictability with a strong focus on creating a global system. Access to fossil-free electricity and build-up of critical infrastructure, including for hydrogen production and storage, is essential. The technical transformation is huge; financial support, including EU funding, and risk-sharing is needed. It is also crucial to develop the markets for low-carbon products with market instruments such as Carbon Contract for Difference.”

Timo Huhtisaari, Director of Sustainability, St1 Nordic: “The investment roadmap ahead is massive. We have tentatively estimated that a project that could utilize 1.6 million CO2 tons – around 15% of Finnish transport emissions would need several billion in investments. In Finland we would likely need 1-2 more of these and Finnish transport emissions are only 1% of EU transport emissions. To enable the development, we need a long-term view on demand for low carbon liquid fuels and EU wide carbon market to price carbon cross sectors, as well as clarity in synthetic fuels regulation such as LCA calculation, electricity additionality, equal status for Power-to-Liquid and advanced biofuels in REDII, fast-track unblocking of infrastructure and investments and financial support for PtL projects from the Recovery and Resilience Facility and Innovation fund.”

Jorgo Chatzimarkakis, Secretary General, Hydrogen Europe: “The European Clean Hydrogen Alliance aims at an ambitious deployment of hydrogen technologies by 2030. The European Clean Hydrogen Alliance brings together industry, national and local public authorities, civil society and other stakeholders. It is strongly anchored in the hydrogen value chain, covering renewable and low-carbon hydrogen from production via transmission to mobility, industry, energy, and heating applications. We welcome that CLC has become a new member of the Alliance”.

Further information: CEO Jouni Keronen, Climate Leadership Coalition, +358 50 453 4881 and Development Director Juha Turkki, Climate Leadership Coalition, +358 45 346 1925.