Mapping Bio-CO2 and Wind Resources for Decarbonized Steel, E-Methanol and District Heat Production in the Bothnian Bay

Abstract

Hydrogen is a versatile feedstock for various chemical and industrial processes, as well as an energy carrier. Dedicated hydrogen infrastructure is envisioned to conceptualize in hydrogen valleys, which link together the suppliers and consumers of hydrogen, heat, oxygen, and electricity. One potential hydrogen valley is the Bay of Bothnia, located in the northern part of the Baltic Sea between Finland and Sweden. The region is characterized as having excellent wind power potential, a strong forest cluster with numerous pulp and paper mills, and significant iron ore and steel production. The study investigates the hydrogen-related opportunities in the region, focusing on infrastructural requirements, flexibility, and co-operation of different sectors. The study found that local wind power capacity is rapidly increasing and will eventually enable the decarbonization of the steel sector in the area, along with moderate Power-to-X implementation. In such case, the heat obtained as a by-product from the electrolysis of hydrogen would greatly exceed the combined district heat demand of the major cities in the area. To completely fulfil its district heat demand, the city of Oulu was simulated to require 0.5–1.2 GW of electrolyser capacity, supported by heat pumps and optionally with heat storages.