Making the development of hydrogen economy mainstream requires sustainable business models, cross-sectoral cooperation and investments in multidisciplinary research. Professor Mika Järvinen from Aalto University emphasises the importance of material and energy efficiency and fair incentives in building a sustainable hydrogen economy.
Why is long-term planning of the hydrogen economy worthwhile – also financially? How can we make limited resources sufficient without our goal of a carbon-neutral society slipping out of our reach? Mika Järvinen, Vice Head of Aalto University's Department of Energy and Mechanical Engineering, studies carbon capture and utilisation, hydrogen technologies and Power-to-X applications. In addition, Järvinen is the Director of the Hydrogen Innovation Centre, established at Aalto University in 2023. According to Järvinen, cooperation between multidisciplinary research and companies is at the core of the development of the hydrogen economy. Even more than this, long-term thinking and sustainable business models are needed.
"For example, we aim to make unit processes, such as electrolysis, more efficient. We study how these processes can be run optimally. This combines experimental research and modelling. We also look at material issues – there has been a lot of research on how to secure the sufficiency of critical materials and how we understand the challenges related to their use. Furthermore, it is important to consider how electricity produced with renewable energy can be allocated smartly to different needs, such as the hydrogen economy, taking into account the needs of different user groups," Järvinen says.
The hydrogen economy is based on flexible markets and material efficiency
Järvinen states that academic research is a critical link also in the optimization of the hydrogen market. The growth of the hydrogen economy is currently stifled by the inflexibility of the electricity market. Järvinen emphasises that adding flexible loads to the electricity grid would benefit all parties – from producers to consumers.
“From an economic point of view, one challenge relates to the energy and hydrogen markets of the future. At the moment, wind power producers want a competitive price for electricity in order to repay their investments. At the same time, developers of the hydrogen economy and synthetic fuels are hoping for the electricity to be affordable so that hydrogen economy solutions are competitive compared to fossil alternatives. This situation means that the electricity market has to change. The current model does not necessarily support the objectives of all parties. We need the electricity grid loads to be flexible to integrate more wind power and ensure that it is also profitable for wind power producers," Järvinen sums up.
Sustainable use of materials is at the heart of the hydrogen economy. As current consumption levels challenge the planet's carrying capacity, building a hydrogen economy requires new approaches to the utilisation of materials and energy, with efficiency and the circular economy at the core. Järvinen calls for changes in mindset – in the future, less can be more.
“When we reach a certain level of energy efficiency, we often do not use this to reduce consumption but instead use resources more efficiently – and thus consumption remains high. Our value base needs to change: could we aim for a mentality, where the goal would be to use as few resources as possible? In my youth, there were races where the aim was to drive as far as possible with the lowest possible fuel consumption. Bringing this kind of thinking into the present could be one way to challenge current norms and values," Järvinen ponders.
Another essential issue is the significant increase in the land area required for renewable energy and taking it into account when safeguarding biodiversity, for example. As an example of the work being done to achieve this, Järvinen and Hanna Paulomäki have written a new textbook for energy engineers, which Springer Nature will publish during spring 2025.
New business models are needed
The growth of the hydrogen economy will open up new business opportunities for both SMEs and large companies. Operators in both the private and public sectors will need new innovations that reduce material and energy consumption and improve efficiency. At the same time, we must develop business models that support the balance between the environment and the economy and ensure that all parties receive a fair share of value creation.
"Equipment manufacturers and industries that use fossil raw materials and energy need to move towards more sustainable alternatives. This requires new ways of thinking and technology. At the same time, it is also important to promote research in this field, as new innovations, such as battery technologies, can solve current challenges. Things like improving the energy density of batteries can open up new opportunities for the development of the aircraft sector," Järvinen sums up.
When it comes to investments, perseverance is key. The development of the hydrogen economy requires solutions that will last for decades to meet the challenges of the global energy transition. Energy infrastructure projects require capital, and we cannot afford to get stuck with environmentally harmful investments.
"Unfortunately, investors often want to see returns within months or a year, but sustainable solutions require thinking 20–30 years ahead. This is especially true for technology and infrastructure. For example, when building a coal-fired power plant, its lifespan will be 50-70 years. The investment must pay back, so the power plants will be used to the end of their lifespan unless there will be support mechanisms for the transition," says Järvinen.
How could the Pirkanmaa region utilise its own regional strengths in the growth of the hydrogen economy? Järvinen sees room for also regional innovations in the hydrogen economy: "Pirkanmaa can have a competitive advantage in the energy transition, especially thanks to industrial expertise and good logistics connections. The location is a key advantage, and the expertise in the area should be utilised."
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 the 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!
