Baltic Sea Hydrogen Collector CEF Study project: 11.3-FIDE-S-M-24-BHC CEF Study

Programme(s): Connecting Europe Facility (CEF)
Topic(s): CEF-E-2024-PCI-PMI-STUDIES
Type of action: CEF Project Grants

Project ID: 101223502

Objective :

The project contributes to the implementation of the Corridor Baltic Energy Market Interconnection Plan (BEMIP) in hydrogen and more specifically to the Baltic Sea Hydrogen Collector PCI 11.3 (BHC). The overall goal is to make a critical contribution to EU energy independence and energy resilience through the construction of an offshore hydrogen pipeline-system totalling 1,320 km (Section A: 985 km between Finland and Germany, and Section B: 233 km between Sweden and Finland as well as a 57 km branch line to Åland, and a 44 km branch line to Gotland) as a 100% hydrogen infrastructure composed of a new offshore pipeline between Sweden, Finland and Germany. The hydrogen supply potential is ~4 Mt/y by 2040. The project’s scope covers the technical pre-FEED study and permitting preparation for Section A (the main pipeline connection between Finland and Germany) and the commercial and regulatory maturation of both Section A and Section B (the main pipeline connection between Sweden and Finland and the branch lines from the Baltic Sea islands Åland and Gotland). In particular, the scope of the envisaged studies covers the technical assessment of the hydrogen transmission infrastructure by updating, revising and extending the outputs of the preliminary studies to initiate the FEED phase of the BHC project. It also comprises of tasks related to commercialisation and regulatory derisking by reducing market risks through outreach to BHC's potential customer base, in-depth market analysis and obtain incremental commitments, by determining the regulatory framework needed to secure a competitive tariffs model and CBCA and by developing risksharing mechanisms to bridge DEVEX and CAPEX financing gaps. Finally, it covers permitting tasks in the pre-FEED phase including EIA preparations by preparing EIA, performing the environmental studies and preparatory work required for the permit process, supporting the public consultation and preparing filing of the permit application. Once the project is completed, it will allow to enter the next stages in the PCI implementation, namely the decision to enter the Front-End Engineering Design (FEED) phase and subsequentially maturing the PCI towards the Final Investment Decision (FID). The aim is to start construction in 2029 and operation in 2031 for Section A and 2030 and 2034 for Section B.