Strategically crucial for the future of EU energy infrastructure - Nordic-Baltic hydrogen corridor receives CEF funding

The project promoters of the Nordic Baltic Hydrogen Corridor (NBHC) Finland’s Gasgrid vetyverkot Oy, Estonia’s Elering, Latvia’s Conexus Baltic Grid, Lithuania’s Amber Grid, Poland’s GAZ-SYSTEM, Germany’s ONTRAS Gastransport and the European Climate, Infrastructure and Environment Executive Agency (CINEA) signed a grant agreement for the European Union (EU) financial support to the NBHC.

The grant agreement was signed on 1st of July 2025 by the countries developing the Nordic-Baltic Hydrogen Corridor project and the European Climate, Infrastructure and Environment Executive Agency (CINEA).

The collaboration reflects a shared commitment to building a resilient and sustainable energy future across the Baltic Sea region. The Corridor aims to support the development of clean hydrogen markets and integrate them into Europe’s future energy system.

The maximum grant amount of €6.8 million will support the NBHC feasibility phase. The co-financing from the Connecting Europe Facility (CEF) for cross-border energy infrastructure projects under the Trans-European Networks for Energy (TEN-E) will allow NBHC project partners to conduct in-depth feasibility studies that examine the technical, economic, regulatory and environmental aspects of building a large-scale hydrogen pipeline network in the Baltic Sea region.

The NBHC represents a significant step towards building the European hydrogen backbone, a strategic vision for connecting hydrogen production and consumption across the continent. By supporting renewable hydrogen transmission, the corridor will enhance energy security, and accelerate Europe’s transition to a decarbonised economy.

The feasibility study phase is expected to be completed in the 1st quarter of 2027 and it will lay the groundwork for subsequent project development phases. NBHC commissioning is expected around 2033’s.

As the feasibility phase gets underway, stakeholders across the public and private sectors will be invited to contribute to the process, ensuring that the Project aligns with local needs, environmental standards, and long-term strategic goals.

European Commission Allocates €6.8 Million for Nordic Baltic Hydrogen Corridor

The European Commission has announced to allocate co-financing from the Connecting Europe Facility (CEF) to cross-border energy infrastructure projects under the Trans-European Networks for Energy (TEN-E) framework and Nordic Baltic Hydrogen Corridor (NBHC) stands out with a €6.8 million grant to support its feasibility study phase. 

This decision will significantly enhance establishing the hydrogen infrastructure that will connect Finland, Estonia, Latvia, Lithuania, Poland, and Germany, forming a vital backbone for Europe’s green energy future. The competition for infrastructure funding in the EU is fierce, so this decision is a great testament to the quality and necessity of the NBHC project and showcase its potential to contribute to the EU's energy self-sufficiency targets and support the clean energy transition.   

The €6.8 million CEF grant will help the NBHC project to execute feasibility phase 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 the end of 2026.   

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.  According to the participants of the project, this decision reinforces the Baltic region’s competitiveness in the hydrogen sector and confirms the project partners’ commitment to both national and international hydrogen infrastructure development. 

The NBHC project’s success in securing this vital funding demonstrates the growing importance of cross-border collaborations in Europe’s transition to a clean and sustainable energy future. As the feasibility phase progresses, the project is set to become a cornerstone of Europe’s energy landscape, fostering a green economy and supporting the EU’s goal of achieving net-zero emissions by 2050. 

The Nordic Baltic Hydrogen Corridor is a pioneering initiative designed to integrate renewable hydrogen across six EU member states. By linking production centers in the Nordic and Baltic regions with major demand hubs, the project will contribute significantly to decarbonizing energy systems, including hard-to-abate industrial sectors, and reduce carbon emissions by up to 37 million tons of CO2 equivalent annually by 2050. 

Nordic-Baltic Hydrogen Corridor enters into 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.  

“We are thrilled to expedite this important collaboration and to make such good progress on the realization of the NBHC project. Not only has this project the potential to significantly reduce carbon emissions of the participating countries, but it can also promote business growth and support the ramp-up of a completely new hydrogen economy in Europe”, said the involved partners.   

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.  

The NBHC project is an important component in Europe’s transition to a sustainable and decarbonized energy system, supporting the EU’s climate goals and enhancing regional energy cooperation. The NBHC will significantly support the EU’s decarbonization targets by integrating renewable hydrogen across six member states. The corridor could reduce carbon emissions by up to 37 million tons of CO2 equivalent per year by 2050. The corridor will enhance energy security and supply diversity in the region and Europe, connecting indigenous renewable hydrogen production to existing and new demand centers​, as well as contribute to the decarbonization of hard-to-abate sectors.     

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.   

Gas transmission operators complete pre-feasibility study

The Gas Transmission System Operators (TSOs) of Finland, Estonia, Latvia, Lithuania, Poland, and Germany's Ontras have successfully completed a pre-feasibility study of the Nordic-Baltic Hydrogen Corridor (NBHC). This significant study, initiated in January 2024, defines the key conditions for implementing the NBHC, aimed at transporting renewable hydrogen between the six countries.   

The study provides a comprehensive framework covering the technical, legal, organizational, and economic aspects necessary to realize the hydrogen corridor, which will play a crucial role in achieving the European Union's decarbonization goals with hydrogen produced and further supplied within the EU territory.  

The Nordic and Baltic region provides significant renewable hydrogen potential identified within the pre-feasibility study at the amount of approx. 27.1 million tons (Mt) of renewable hydrogen production (based on combined onshore and offshore wind and solar) by 2040. This creates a large hydrogen market creation and export potential towards continental Europe which the NBHC aims to address.  

By 2040, the corridor is projected to transport up to 2.7 million tons (Mt) of renewable hydrogen annually between the countries. The pre-feasibility study indicated that the NBHC can be one of the first operational cross-border hydrogen pipelines in Europe. The NBHC pipeline is currently planned to be 48 inches (1,200 mm) in diameter, with several compressor stations and spanning approximately 2,500 km. 

„With our joint project, we, as transmission system operators, are creating the basis for the market ramp-up of the hydrogen economy in six European member states. The cross-border, organic cooperation between producers, transporters and consumers will be an important building block for the success of the energy transition in Europe,” the project partners are convinced.  

"The hydrogen infrastructure creates the possibility of long-term storage of renewable energy for periods when the production of renewable electricity is low, and it is necessary to produce electricity back from hydrogen, contributing to the security of supply of the electricity system. Additional connections with neighboring countries will increase energy security and enable Estonia and Europe in general to reduce dependence on energy imports from third countries," said Kalle Kilk, Elering's Chairman of the Board.  

The NBHC project is an important component in Europe's transition to a sustainable and decarbonized energy system, supporting the EU's climate goals and enhancing regional energy cooperation. The NBHC will significantly support the EU’s decarbonization targets by integrating renewable hydrogen across six member states. The corridor could reduce carbon emissions by up to 37 million tons of CO2 equivalent per year by 2050. The corridor will enhance energy security and supply diversity in the region and Europe, connecting indigenous renewable hydrogen production to existing and new demand centers , as well as contribute to the decarbonization of hard-to-abate sectors.  

In April 2024, the NBHC was publicly 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). The PCI status enables benefits such eligibility to apply for EU project funding and accelerated perming granting procedures.   

Moving forward, based on the pre-feasibility study results the TSOs now plan to commence work on the feasibility study covering the project‘s detailed technical analysis, commercial and economic assessment as well as the detailed implementation timeline of the Nordic-Baltic Hydrogen Corridor.

The European Gas Transmission System Operators Gasgrid Finland (Finland), Elering (Estonia), Conexus Baltic Grid (Latvia), Amber Grid (Lithuania), GAZ-SYSTEM (Poland) and ONTRAS (Germany) participating in the international project for the creation of the Nordic-Baltic Hydrogen Corridor signed a contract on the pre-feasibility study on the green hydrogen corridor.

AFRY Management Consulting, the winner of the tender, will analyze the conditions for the development of cross-border hydrogen infrastructure from Finland, through the Baltic countries and Poland to Germany, as well as green hydrogen trends in the region. It is planned that the study, which will provide a comprehensive, fact-based framework to allow optimal decisions to be made, will be prepared by the middle of 2024.

The goal of the Nordic-Baltic Hydrogen Corridor project is to create a connection between green energy production regions in Northern Europe with the main consumption centers in Central Europe. This project is expected to be implemented by 2030.

Based on the recommendations of the Pre-feasibility Study on the hydrogen corridor, the project partners will make decisions on the further development of the project.

The project supports EU climate targets and hydrogen economy development

It is considered that this hydrogen corridor would create great opportunities for the development of energy and related ecosystems. It will promote the development of renewable electricity production, utilization of renewable energy sources, accelerate the hydrogen economy development and contribute to the implementation of European climate goals. Furthermore, it will create conditions for investment in industrial and technological innovation along the entire pipeline route, reduce energy transportation costs, create jobs, and generate additional income for the states.

The Nordic-Baltic Hydrogen Corridor project aims to strongly support the regional and EU climate targets.

In December 2022 six gas transmission system operators, the project partners, signed a cooperation agreement to promote the project together. In November 2023, the Nordic-Baltic Hydrogen Corridor was granted the status of a project of common interest (PCI) by the European Commission.  Now the project has taken the next important step, since the project partners have signed a contract for the Pre-feasibility Study, to further investigate the creation of the Nordic-Baltic Hydrogen Corridor.

With the dynamic changes related to energy transformation and decarbonization of the economy taking place in the Member States of the European Union, it is expected that hydrogen will become one of the main of energy carriers in Europe. Hydrogen will strengthen the EU’s energy security and will play an important role in reducing the dependence of energy-intensive European industries on imported fossil fuels and energy. In addition, a significant contribution to the EU’s greenhouse gas emission reduction target is reached when fossil fuel consumption in the industry, transport, and energy sectors is replaced with renewable and low-carbon hydrogen or fuels refined from it.