The hydrogen economy opens up new opportunities for Finnish companies. In addition to his duties as a Member of Parliament,
Oras Tynkkynen serves as the Chairman of the Board of Directors of Tyrsky, a consultancy specialising in climate and sustainability issues. In the interview, Tynkkynen explains the effects of the hydrogen economy on regional development and the economy as a whole. Should Finland focus on exporting electricity and hydrogen or refine green hydrogen into products, such as synthetic fuels and green steel?
Finland has excellent conditions to become a leading country in the hydrogen economy, but as global competition intensifies, differentiation requires clear strategic choices. In addition to his expert work, Oras Tynkkynen has gained expertise in the green transition through his political roles, such as Member of Parliament for the Green Party, Tampere City Councillor, and Vice Chairman of the Board of Tampereen Energia. According to Tynkkynen, Finland is an attractive destination for investment in green hydrogen due to its existing infrastructure and regulatory environment.
"By international comparison, we have a first-class framework for producing affordable and clean electricity. By the standards of Western democracies, Finland also has smooth official processes concerning the permitting, impact assessment and zoning of various plants," he says.
Long-term decisions are crucial
There are also factors slowing down development. Licensing processes still take too much time and Finland's remote location, relative to large markets, increase logistical costs. In addition, the shortage of skilled workers is a real problem that requires long-term solutions, such as promoting work-based immigration and investing in education.
“As with many other solutions to the green transition, the debate on the hydrogen economy is cyclical in nature. Instead of following the hype, we should at least make national decisions with long-term goals in mind, so that we are in a better position in international competition for investment. The good news is that there seems to be a widely shared understanding in Finland of why the green transition is needed," says Tynkkynen.
Two paradigms of the hydrogen economy
How can Finland be put on the world map of the hydrogen economy? Views are divided into two main paradigms: one argues that Finland could focus on selling green energy as is, while the other states that energy should be utilised in the production of low-emission commodities, such as synthetic fuels and green steel. However, Tynkkynen points out that these are not completely mutually exclusive alternatives, but the matter can also be viewed as a time span issue. Tynkkynen emphasises that abundant and competitive electricity production plays a key role in both scenarios, echoing his view that decisions should be based on a long-term vision.
"It’s important that Finland is seen as an attractive investment destination. Countries such as Germany can invest enormously in granting state aid; we must keep up by investing in research, development, and knowledge. This requires clear strategic choices from Finland."
Pirkanmaa believes in cooperation
At the local level, Tynkkynen sees the cross-border nature of cooperation as one of the strengths of the Pirkanmaa region. " Pirkanmaa can promote the circular economy by ensuring that the region is involved in building hydrogen infrastructure," he says. Tynkkynen has also seen up close how regional actors can be brought together:
"In the region, cross-border cooperation is very well developed and organised. I see this as one of our trump cards. It’s therefore important to continue to create basic surveys of actors and opportunities and to strengthen lobbying so that the Pirkanmaa region benefits from state-level measures to promote the hydrogen economy."
Tynkkynen sees significant opportunities for SMEs, especially in the manufacture of products with high added value:
"The hydrogen economy is not just a playground for large corporations. As the market for green hydrogen grows, there will also be room for smaller operators in services such as logistics, accounting, and property maintenance. Today, there is also talk of a circular carbon economy, which is very closely linked to the hydrogen economy. Captured carbon can be used to produce low-value-added products. But coal can also be used to make things like vodka or even diamonds! Companies in the Pirkanmaa region would do well to think – and I have encouraged this myself – how could we be the ones who make products with high added value instead of remaining in low-value-added production."
Hydrogen is a key element in solutions for the green transition and its development requires open discussion and bold solutions. The Hydrogen Summit &; Expo will bring together experts, decision-makers, and a business network at Tampere Exhibition and Sports Centre on 22.–23.1. to discuss the future of the hydrogen economy. You are welcome to join us in shaping the direction of the hydrogen economy!
