Finland to Finalize Landmark Hydrogen Legislation by End of 2025

Legislative Framework Nears Completion

The Finnish government has confirmed its hydrogen legislative proposal will be finalized before the end of 2025. This significant step is aimed at establishing a regulated hydrogen market within the country. The proposed legislation is expected to be open for public consultation in January 2026 and is anticipated to come into force in the latter half of 2026.

Until now, Finland has relied on adapting existing gas legislation to govern hydrogen-related activities. The new, dedicated hydrogen law will provide clear definitions for regulation, including aspects such as pipeline ownership and operation, access and pricing mechanisms, and comprehensive safety and environmental standards. Officials, including Arto Rajala of Finland's Ministry of Economic Affairs and Employment, have indicated that the goal is to create a framework that offers both predictability for investors and the flexibility needed to support an evolving market.

Driving Finland's Hydrogen Ambitions

The finalization of this legislation is a cornerstone of Finland's broader strategy to position itself as a leading force in the European hydrogen economy. The government's program, 'A Strong and Committed Finland,' outlines a vision for the nation to become a 'powerhouse of clean energy.' Finland aims to produce at least 10% of the European Union's emissions-free hydrogen by 2030.

This ambitious goal is underpinned by Finland's competitive advantages, which include an abundance of clean electricity generated from renewable and nuclear sources, a stable societal and political environment, well-developed infrastructure, and competitive electricity prices across Europe. The hydrogen economy is projected to bring substantial economic benefits, with estimates suggesting it could generate between €16 billion and €34 billion in revenue annually by 2035 and create over 115,000 new jobs within the same timeframe.

Infrastructure Development and Investment Certainty

A key component of Finland's hydrogen strategy involves the development of robust infrastructure. Gasgrid, the state-owned transmission system operator, has been mandated to spearhead the development of both national and cross-border hydrogen networks. This includes significant projects such as the Nordic Hydrogen Route, the Baltic Sea Hydrogen Collector, and the Nordic-Baltic Hydrogen Corridor. The investment decision for Finland's national hydrogen infrastructure is planned for 2026, with an anticipated completion by 2030.

The new legislative framework is expected to provide the necessary rules, authority, and certainty for investors, facilitating the transition of hydrogen projects from the planning stage to active construction. In parallel efforts, there are ongoing discussions regarding tax credits for clean technology investments, including hydrogen projects. A temporary tax credit for large industrial investments, starting at €50 million and potentially covering up to 20% of costs (capped at €150 million per company), has been proposed. Furthermore, the EU has approved a €2.3 billion subsidy program for clean manufacturing and industrial decarbonization, from which green hydrogen producers in Finland stand to benefit.