Estonia

Estonia flag
GH2 Country Portal – Estonia

Green Hydrogen Vision

Estonia’s green hydrogen vision is rooted in its ambition to transition to a climate-neutral economy while enhancing energy security and fostering innovation. The country aims to develop a robust hydrogen ecosystem, anchored by initiatives like Hydrogen Valley Estonia, the world’s first nationwide hydrogen valley. This ecosystem will integrate production, distribution, and utilization of green hydrogen across industries, transport, and energy systems. Estonia’s strategy prioritizes renewable energy sources such as wind and solar to produce hydrogen sustainably, aligning with the European Green Deal and REPowerEU objectives. The country is also committed to fostering international collaborations and investing in R&D to advance hydrogen technologies like electrolysers and fuel cells. By creating hydrogen-powered infrastructure, including refueling stations and transport solutions, Estonia envisions a future where green hydrogen contributes significantly to decarbonization, economic growth, and energy resilience. 

National Strategy

The Estonian Hydrogen Roadmap 2023 provides a framework for transitioning Estonia's energy sector toward hydrogen technology to meet ambitious climate and energy goals. By 2050, Estonia aims to become a climate-neutral and competitive economy, aligning with EU objectives such as the European Green Deal. The roadmap highlights the country's potential to become a hydrogen exporter, leveraging its renewable energy capacity, particularly offshore wind. However, Estonia faces challenges, including high hydrogen production costs, limited infrastructure, and a lack of expertise. The document outlines pilot activities from 2021-2030, focusing on policy development, R&D, and small-scale green hydrogen projects. 

Current initiatives include fostering renewable energy generation, integrating hydrogen into industrial and transport systems, and building refuelling infrastructure along the Trans-European Transport Network (TEN-T). By 2030, Estonia plans to establish at least 3-5 hydrogen refuelling stations and increase renewable energy to meet the annual demand for producing 2,000 to 40,000 tonnes of green hydrogen. Cooperation with neighbouring countries and the private sector is emphasized to create a sustainable hydrogen value chain, reduce emissions, and strengthen energy independence amid geopolitical tensions. 

The roadmap anticipates scaling hydrogen technologies between 2031-2035, focusing on economic viability, eliminating barriers, and demonstrating cost-effectiveness in transport and industrial applications. Local green hydrogen production will gradually expand, supporting zero-carbon technologies and creating new opportunities in fields like synthetic fuels and ammonia production. Investments in infrastructure, legislative frameworks, and public awareness campaigns will underpin this phase. 

From 2036-2050, Estonia plans to scale up its hydrogen economy, utilizing offshore wind capacity exceeding 7 GW. This phase will emphasize broader applications of green hydrogen in the energy, transport, and chemical sectors while exploring export opportunities. Periodic reviews will ensure the roadmap's alignment with technological advancements and market dynamics, solidifying Estonia's position as a hydrogen innovation and sustainability leader. 

Capacity Targets

Hydrogen Production Capacity: 

  • Current production is minimal with pilot-scale projects planned. 
  • Green hydrogen production potential by 2030 is estimated to be between 2,000 to 40,000 tonnes per year, depending on renewable energy availability and market conditions. 
  • Estonia is focused on competitively producing electrolysers, fuel cells, and their components. 

Renewable Energy Targets: 

  • Estonia aims to have 100% of electricity consumption from renewable sources by 2030, with significant reliance on offshore wind (potentially 7 GW by 2050). 
  • Offshore wind capacity is expected to reach 3 GW by 2030, with total wind farm capacity increasing fourfold to 1 GW by the same year. 

Hydrogen Refuelling Infrastructure: 

  • 3 to 5 refuelling stations (each with 2 tonnes/day capacity) along the TEN-T network are planned by 2030. 

Impact Targets

Climate and Emission Reductions: 

  • By 2035, reduce GHG emissions by 42% from 2019 levels (14 million tonnes CO2-eq to 8 million tonnes CO2-eq). 
  • Increase the share of sustainable mobility from 38.7% to 55% by 2035. 

Sectoral Transformation: 

  • Introduce hydrogen in heavy transport, ferries, aviation, and industry for long-term carbon-neutral operations. 
  • Develop synthetic fuels, ammonia, methanol, and hydrogen technologies to replace imported fossil fuels. 

Economic Goals: 

  • Transition from an energy-importing to a hydrogen-exporting country by leveraging local renewable resources. 
  • Enhance R&D capabilities to bridge academic and industrial hydrogen applications. 

Project Spotlight

Elcogen, a leading European manufacturer of technology for the efficient and affordable delivery of green hydrogen and emission-free electricity, is excited to announce its selection for the European Union's 2024 Innovation Fund grant. The grant, amounting to €24.9 million, will support the next phase of Elcogen's efforts to scale up manufacturing capacity for solid oxide electrolyser cells (SOEC) and solid oxide fuel cells (SOFC) in Estonia. This initiative aims to facilitate the energy transition and enhance the efficient production of green hydrogen. 

Financing

Public Investments: 

  • €67 million allocated for hydrogen value chain R&D through IPCEI projects. 
  • €49 million from RRF funds to support hydrogen technology deployment by 2026. 

Private Sector Contributions: 

  • Companies developing hydrogen production, fuel cells, and electrolysers, with pilot projects supported by public-private partnerships. 

EU and Regional Funding: 

  • Participation in EU programs like Horizon Europe and IPCEI for collaborative projects. 
  • €25 million was granted for Hydrogen Valleys under Horizon Europe. 

International Cooperation: 

  • Development of the Baltic and Nordic hydrogen network, including a pipeline proposal linking Estonia to Germany. 

Government Green Hydrogen Lead

Ministry of Climate 

Ministry of Economic Affairs and Communications