Germany and Finland: Cooperation strengthens position on the hydrogen market
Germany and Finland are pursuing ambitious goals in the hydrogen sector. Current economic collaborations show how both countries mutually benefit from each other and expand their position on the hydrogen market.
Press release 26.11.2025
It is the first of its kind in Finland: in the spring, an industrial-scale green hydrogen production plant went into operation in Harjavalta, Southwest Finland. It was built by the Finnish company P2X Solutions Oy, a pioneer in green hydrogen and Power-to-X technology. The company additionally plans to build further production plants in Joensuu and Oulu, aiming for a total hydrogen production capacity of 1 GW by 2031.
The arrival of the electrolysis plant in Harjavalta marked an important milestone for the production of green hydrogen.
The electrolysis system for hydrogen production in Harjavalta originates from Germany. More precisely from Dresden from Sunfire SE, a specialist in electrolysers.
"The electrolysis plant is the key technology for hydrogen production. Its arrival in Harjavalta marked an important milestone for the production of green hydrogen," explains Herkko Plit, founder and CEO of P2X Solutions, looking back. The plant's electrolysis capacity is 20 MW, with the electrolyser producing green hydrogen from renewable electricity.
"We are proud to have contributed to this historic milestone with our electrolyzers from Dresden - a true lighthouse project for green hydrogen, made in Europe!” says Nils Aldag, CEO of Sunfire.
The complex is a prime example of how innovative solutions of this type can be built in a customer-oriented and needs-oriented manner.
In addition to the hydrogen production facility, the Harjavalta complex also includes a methanation plant manufactured by Q Power Oy. This will go into operation at a later date and will produce synthetic methane. The complex is a prime example of how innovative solutions of this type can be built in a customer-oriented and needs-oriented manner. The green hydrogen, for example, is intended for the local industry; an initial purchase agreement with Danisco Sweeteners has already been signed. The sustainable energy source is intended to reduce CO₂ emissions during xylitol production in the food industry, as P2X Solutions states.
Two countries, two ambitious H₂ goals
Both Germany and Finland are pursuing ambitious goals in the field of hydrogen. The Federal Republic wants to promote green hydrogen as a key technology for the energy transition. The goal is to transform Germany into a climate-neutral industrial country by 2045 and to decarbonize energy-intensive economic sectors with the help of green hydrogen.
An important interim H₂ goal for Germany is to achieve a production capacity of at least ten gigawatts by 2030. However, experts consider this to be unrealistic. European market uncertainties - for example regarding the currently foreseen price level of hydrogen or the infrastructure that still needs to be built, as well as regulations - are slowing the final investment decisions. With its lack of renewable electricity, Germany cannot produce the necessary quantities of hydrogen itself and therefore has to rely on imports in the hydrogen sector to cover demand.
Finland plans to produce ten percent of the green hydrogen produced in the EU itself by 2030.
This is where countries like Finland come into play, which can step in as energy exporters. Finland plans to produce ten percent of the green hydrogen produced in the EU itself by 2030. The location conditions for this are excellent: around 95 percent of the electricity generated is free of CO₂ emissions, electricity prices are low, and Finland has extensive capabilities to build new renewable capacity. In addition, there is a resilient technology and industrial landscape with highly educated professionals backed up with competitive, innovative environment.
“We have excellent capacities to both use hydrogen locally for our own purposes and produce it for the German market at competitive prices," explains Herkko Plit. He also acts as Chair of the Board of Hydrogen cluster Finland, a network of companies and industrial associations that promote the development of hydrogen economy in Finland. He sees hydrogen as the key to a free and industrious Europe. Furthermore, he emphasizes Finland's importance as a supplier of biogenic CO2, which is used, for example, to produce synthetic fuels.
This is backed by Finland’s unmatched clean energy, technical expertise, and investor-friendly environment. “We are looking forward to leveraging the strong collaboration with German companies and invite local and global stakeholders to drive sustainable innovation and business!”
Oulu: Finnish H₂ hotspot with outstanding investment conditions
The high-tech hotspot of Oulu region for example, is one of the most important trade, logistics and cultural regions in Northern Europe and ideal for collaboration. The region 600 kilometres north of Helsinki with its own port is a hub for maritime, rail and road transport and is part of the Trans European Transport Network (TEN-T). The country's second largest airport is also located there. High onshore and offshore wind potential and an extensive district heating network to use excess heat from industrial processes are further location advantages for economic engagement. In addition, Oulu region boasts a big concentration of biogenic CO₂ along with three large power lines running through the area, ensuring the electricity supply to the entire area and meeting the demands of diverse industries.
Besides that, the Nordic Hydrogen Route, a project to build a cross-border hydrogen infrastructure in the Bay of Bothnia region, will run through the university town. Further initiatives planned by gas network operator Gasgrid will connect Oulu with the rest of Finland and other countries and further develop the European hydrogen infrastructure.
The high-tech hotspot of Oulu region is one of the most important trade, logistics and cultural regions in Northern Europe and ideal for collaboration.
For German companies, it is the ideal environment for investment and cooperation opportunities: “For example, a new industrial site - the Oulu Port Green Transition Industrial Zone - is under development and will cover 40 to 200 hectares. It offers opportunities for a sustainable, green transition industry such as the hydrogen economy,” explains Seppo Kaikkonen, Business Oulu.
German companies that are already moving to Oulu are the project developers in the renewable energy sector Abo Energy and Energiequelle. In the spring of this year, Abo Energy received the planning reservation for a hydrogen production plant. Energiequelle, in turn, has been awarded the planning approval for the Oulu Green Hydrogen Park project.
A way forward
To deepen the German-Finnish collaboration, Business Finland is active in the German market to bring the parties together. ”We are in discussions with multiple regions in Germany, for example the Hy-5 initiative of Bremen, Hamburg, Mecklenburg-Vorpommern, Niedersachsen, and Schleswig-Holstein, as well as Baden-Württemberg and NRW“, says Dr. Helmi-Nelli Körkkö, Senior Advisor at Business Finland.
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