My Oulu: Hydrogen economy brings a lot of opportunities for Oulu and Luleå – Arctic Frontiers met in Tromsø

Hydrogen is far from a light or colorless topic for discussions —something that Mayor of Oulu, Ari Alatossava, and the Arctic Frontiers audience experienced firsthand a few weeks ago in Tromsø.

Hydrogen is seen as a cornerstone of the green transition, both within the EU and the Arctic region. The estimated hydrogen production potential in the Nordic countries stands at eight megatonnes—more than double the region’s carbon neutrality targets.

However, in practice, only 0.2% of this capacity is currently in production. Even with the completion of hydrogen plants currently under construction, production will only reach 1% of its full potential. Significant development is still required, but Oulu and Luleå are already a step ahead of many others.

Legislative and market challenges

The mayors of Luleå and Oulu, Carina Sammeli and Ari Alatossava, who participated in the Arctic Frontiers panel discussion, emphasized that the Bothnian Arc has the potential to be at the forefront of the EU’s hydrogen revolution. However, they also stressed that timelines must be realistic and that new legislation is essential for hydrogen investments to materialize.

”Our starting point was that SSAB needs an emission-free way to produce steel, and hydrogen is part of this solution. Luleå is definitely a key location on the Nordic hydrogen map, but we are not used to gas in Sweden. We lack gas networks and, therefore, the legislation needed to build the infrastructure required for hydrogen storage and transportation,” Sammeli explained.

In addition, hydrogen economy value chains are still being developed. However, Alatossava emphasized that Oulu trusts in market forces.

”The city doesn’t determine whether there is a market—companies do. Our role is to ensure that Oulu provides an attractive operating environment for the hydrogen economy, as the Port of Oulu in Oritkari already does,” he stated.

In November last year, the French company Verso Energy secured a plot of land in Oritkari for a new plant dedicated to hydrogen and synthetic fuel production at the Port of Oulu.

”We are laying the groundwork for companies to be ready to invest in hydrogen production and create jobs in Oulu,” Alatossava added.

One peace at time

While hydrogen production itself may not have the same employment impact as green steel production, Mayor Alatossava believes that the new industry will generate jobs in other ways.

”Oulu’s approach is to connect investors and businesses with researchers. The University of Oulu is already conducting hydrogen-related research, which could lead to entirely new developments. I believe we will see new investments and startups emerging from research soon,” Alatossava assured.

Although many challenges remain for northern municipalities in the hydrogen revolution, both Sammeli and Alatossava remain optimistic about its potential.

”There is still much to resolve, and we constantly face new discussions and decisions with unknown consequences. The colonial history of the North cannot be ignored—our natural resources have long been exploited for economic gain elsewhere. We want to prevent that from happening again, but we approach it methodically, like eating an elephant: one piece at a time,” Sammeli remarked with a smile.

Discussions on the hydrogen potential of the North will continue this week in Oulu during Nordic Hydrogen Week, the largest hydrogen event in Northern Finland, which will bring together more than 1,500 participants. Further details about Verso Energy’s planned project will also be revealed at the event.