ANALYSIS OF THE HYDROGEN RESOURCES USAGE IN ESTONIA

The analysis evaluates Estonia's readiness for a hydrogen economy, focusing on the transport and industrial sectors as primary drivers for decarbonization. It models two scenarios (low and high) for hydrogen penetration by 2050, estimating that total investments could reach EUR 22.4 to 44.7 billion. The report highlights that while the transport sector—particularly shipping and rail—and the production of green ammonia and methanol offer the highest potential, significant barriers exist, including a lack of refueling infrastructure, high initial costs, and the need for a national hydrogen strategy. To unlock this potential, the study emphasizes the necessity of increasing renewable electricity capacity, specifically through offshore wind, and providing public investment to kick-start the market.

• The transport and industrial sectors are the primary areas for hydrogen penetration in Estonia. By 2050, the transport sector could consume between 108,587 and 214,174 tons of hydrogen, while the ammonia and methanol industry could use 43,922 to 87,845 tons.
• Achieving high hydrogen penetration by 2050 would require total investments between EUR 22.4 billion and EUR 44.7 billion across the value chain, with a significant need for initial public funding because most use-cases are not currently competitive.
• The deployment of a hydrogen economy will necessitate a substantial increase in climate-neutral electricity. The high scenario requires 16 TWh of clean electricity, which would involve additional investments of EUR 5.3 to 10.6 billion by 2050, primarily driven by offshore wind deployment.
• Among ten analyzed pilot projects, hydrogen ferries and the export of green ammonia show the highest potential. The ferry project's ROI would increase to 10% with EUR 2.7 million in support for hydrogen vessels, while a 24 MW electrolyser for ammonia could save 30 kilotons of CO2 annually.
• Widespread hydrogen adoption in Estonia faces several critical barriers, most notably the absence of a national hydrogen strategy, a lack of refueling infrastructure, and a shortage of qualified personnel for maintenance.
• The socio-economic benefits of hydrogen penetration by 2050 include a reduction of 2.2 to 4.4 million tons of CO2 equivalent emissions and the creation of 21,169 to 42,432 jobs, with over 64% of jobs in the high scenario coming from production and distribution.

APA

Viks-Binsol, P., Rell, M., Uibooss, R., Treial, A., Tammiste, L., Kirsimaa, K., Aslam, A., Butt, T. E., Kruusenberg, I., & Praats, R. (2021). ANALYSIS OF THE HYDROGEN RESOURCES USAGE IN ESTONIA. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2021/07/analysis-of-the-hydrogen-resources-usage-in-estonia-summary.docx.pdf

Chicago

Viks-Binsol, Piia, Martti Rell, Renar Uibooss, Alo Treial, Lauri Tammiste, Kerli Kirsimaa, Adil Aslam, et al. ANALYSIS OF THE HYDROGEN RESOURCES USAGE IN ESTONIA. Stockholm Environment Institute, 2021. https://www.sei.org/wp-content/uploads/2021/07/analysis-of-the-hydrogen-resources-usage-in-estonia-summary.docx.pdf.

Wikipedia

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BibTeX

@techreport{viksbinsol2021analysis, author = {Viks-Binsol, Piia and Rell, Martti and Uibooss, Renar and Treial, Alo and Tammiste, Lauri and Kirsimaa, Kerli and Aslam, Adil and Butt, Tyyab Ehsan and Kruusenberg, Ivar and Praats, Reio}, title = {{ANALYSIS OF THE HYDROGEN RESOURCES USAGE IN ESTONIA}}, institution = {Stockholm Environment Institute}, year = {2021}, month = may, url = {https://www.sei.org/wp-content/uploads/2021/07/analysis-of-the-hydrogen-resources-usage-in-estonia-summary.docx.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }