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Business Finland to accept applications on hydrogen projects as part of the Sustainable Growth Programme

Ministry of Economic Affairs and Employment
Publication date 11.6.2021 12.15 | Published in English on 14.6.2021 at 9.29
Type:Press release
Sustainable Growth Programme for Finland

Finland will participate in creating a European value chain for the hydrogen economy (hydrogen IPCEI) and will launch a call for applications on related projects for companies. Companies will have until 4 July to present to Business Finland their projects, which are linked to European networks and which will speed up the production of clean hydrogen and the development of new uses for hydrogen.

“Finland’s investments in the hydrogen economy will contribute to a low-emission future and company competitiveness. Participation in the European hydrogen economy project will promote investments in the hydrogen economy and open a unique opportunity for Finnish industry to renew its activities,” says Minister of Economic Affairs Mika Lintilä.

In its Sustainable Growth Programme, the Finnish Government has allocated EUR 150 million in public funding to projects related to hydrogen technology and carbon capture and utilisation. Part of the funding will be directed to projects linked to the hydrogen IPCEI where the call for applications has now started. Some funding will be reserved for national projects at a later stage. The projects will support the objective of the Government to achieve a carbon neutral Finland by 2035.

IPCEI is an abbreviation for Important Project of Common European Interest. IPCEIs are subject to separate, less stringent State aid rules, which allow States to support companies more flexibly than normal.

Finnish companies to join European value chain for hydrogen production and use

Business Finland’s call for applications aims to find those Finnish projects that enable Finland’s business and industry to become part of the European value chain of hydrogen production and use. In their application, companies should present projects for which Finland should apply for a derogation from the general State aid rules from the European Commission. After the Commission’s decision, Business Finland will decide which projects will receive funding.

In accordance with Finland’s Sustainable Growth Programme, funding will be allocated to investments in the hydrogen value chain, where hydrogen will be used by industry, transport or any other new products and solutions based on the utilisation of carbon dioxide. Above all, the production of hydrogen in the projects will be based on the use of low-carbon electricity.

Funding will not be allocated to the production of hydrogen from natural gas. Instead, the funding is designed to support solutions on the capture, utilisation and storage of carbon dioxide.

The funded projects must fully support the climate criteria defined in the EU’s Recovery and Resilience Facility (RRF). The projects must also comply with the ‘do no significant harm’ principle, which means that investments should not cause significant harm to environmental objectives.

In autumn 2020, Business Finland organised a call for proposals related to the hydrogen IPCEI in order to assess the interest of Finnish companies to participate in the process. In their proposals, companies presented nine projects that could be suitable for the IPCEI.

The funding of hydrogen projects requires that the Council of the European Union approve Finland’s Recovery and Resilience Plan.

More detailed information on the call for applications and selection criteria are published on Business Finland’s website.

Inquiries: 
Teppo Säkkinen, Special Adviser to the Minister of Economic Affairs, tel. +358 50 516 2868  
Jyrki Alkio, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 29 504 7103 jyrki.alkio(a)tem.fi 
Tero Ijäs, Ecosystems lead, Business Finland, tel. +358 50 599 2620, tero.ijas(a)businessfinland.fi

Funded by the European Union – NextGenerationEU
Business Finland’s call for applications: Participation of Finnish business and industry in the EU’s hydrogen IPCEI (in Finnish)Link to an external website
Finland’s Sustainable Growth Programme on the Ministry of Finance website Link to an external website
Press release by the Ministry of Economic Affairs and Employment, 17 December 2020: Finland joins the European Clean Hydrogen Alliance – the objective is to mitigate climate change and increase industrial competitiveness
Mika Lintilä
EU climate confederations of states endurance enterprises finance growth hydrogen industry low-carbon means of livelihood organisations
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