HYGCEL (2022-2024) was a Business Finland co-innovation project that studied Finland’s energy transition at system level – identifying the PtX value chains and the electricity and hydrogen infrastructure Finland needs to build to turn its renewable energy resources into a competitive edge.
HYGCEL
Hydrogen and carbon value chains for green electrification
Key numbers
total co-innovation budget
partner organisations
work packages
CLIC’s role
CLIC Innovation coordinated HYGCEL’s preparation and consortium throughout the project, enabling collaboration between the three research organisations and the 14 companies involved. CLIC organised knowledge-sharing “morning coffee” sessions, matchmaking events between work package leaders and companies, and the project’s research seminars – most recently the joint closing seminar at Oodi, Helsinki in May 2024.
Clean electricity and hydrogen are at the core of the energy transition. A carbon-neutral energy and material system becomes possible once electricity is generated in an emission-free way, such as with wind or solar power – with hydrogen and its derivatives needed in the sectors that cannot be electrified directly. Value chains built around hydrogen and carbon will look different from those based on fossil fuels, which requires adjustments in infrastructure as well as proactive, regulation- and economics-driven action.
HYGCEL ran from January 2022 to October 2024, financed by Business Finland. The research was conducted jointly by LUT University (lead), Tampere University and the University of Eastern Finland, with a research budget of €4.5 million and a total co-innovation budget exceeding €10 million.
HYGCEL’s research was organised into six work packages, examined through three lenses: markets and regulation, techno-economy, and sustainability and safety.
Work packages:
- WP1 Regulation, politics and investments
- WP2 Optimal infrastructure
- WP3 Methane and hydrogen
- WP4 Future PtX cogeneration plants
- WP5 CO2 solid carbon products
- WP6 Safety and security.
Finland’s wind and solar potential could supply around 10% of the EU’s renewable electricity, but it is spread unevenly, which creates regional energy surpluses and deficits.
Hydrogen transport can reduce the need for grid reinforcement, especially when electrolysis is built next to renewable generation. Flexible electrolysis and storage are needed in every scenario.
Flexible PtX plants create added value. Separating methanol synthesis from distillation allows faster load changes, and storing crude methanol is cheaper than storing hydrogen.
EU rules for renewable hydrogen create stable demand. To lead the market, Finland needs state aid and faster permitting for the whole hydrogen chain.
The e-methanol business case turns clearly positive only with very low electricity prices, so subsidies, lower interest rates and profit sharing across the value chain make the difference.
PtX products cut emissions radically compared with fossil alternatives. Most hydrogen incidents trace back to human and organisational factors, so training and clear guidelines matter.
Identified new PtX value chains built on Finland’s renewable energy resources, and provided guidance for building the electricity and hydrogen infrastructure needed to support them.
Brought together three research organisations and 14 companies – several of which built their own parallel research and business streams, such as a state-of-the-art P2X model opening new markets in Finland and abroad, directly on top of HYGCEL’s results.
Strengthened Finland’s position in the emerging hydrogen economy through joint case studies on regulation, market design and system-level infrastructure planning.
LUT University
Mari Tuomaala
CLIC played an important role in bringing the HYGCEL project together and getting it started, as well as in organising stakeholder events and steering group meetings. LUT University was responsible for leading the research and reporting, and the collaboration with CLIC worked very well throughout the project.
About LUT University is a Finnish public science university combining technology, business and social sciences, founded in 1969, with campuses in Lappeenranta and Lahti. LUT is one of CLIC Innovation’s owner universities and has been a research partner in several CLIC-coordinated projects, leading the research in HYGCEL and contributing to others.
HYGCEL at a glance
HYGCEL shows what happens when 17 organisations pool their expertise around one goal: building Finland’s hydrogen and carbon value chains – with CLIC as the coordinator.
“Interested in HYGCEL, or want to build the next hydrogen or carbon value chain? Let’s talk.”
