The study analyses Latvia’s functions in the European hydrogen economy ecosystem.

A study has been carried out that compiles the development visions of various market participant segments involved in the hydrogen economy and identifies recommendations for the government. The results include proposals for the development of the hydrogen economy, as well as for cooperation between the private, public, and state sectors. The study will be submitted to the responsible ministries with the aim of supporting the work of national institutions on framework documents for the development of a national-scale hydrogen economy. The study “Latvia’s Hydrogen Economy Strategy 2030” was initiated and its preparation led by the association “Sustainability Cluster Latvia“.

“The hydrogen economy can become one of the driving forces of Latvia’s energy decarbonization and, in the medium term, promote sustainable energy. With this study, we aim to call on the government to define Latvia’s function in the European hydrogen economy ecosystem – whether we will be a transit country, a producer of green hydrogen, a producer and exporter of green methanol, a hydrogen consumer country, or choose another scenario. Defining Latvia’s role will make it possible to more purposefully implement legislative changes, absorb European Union funds, and involve global private initiatives,” notes the study’s lead author, Dr.oec. Justs Dimants, who devoted his doctoral dissertation to the topic of the hydrogen economy.

“In our view, Latvia has the potential and the prerequisites to fulfill all of the mentioned functions to varying degrees, thereby contributing to the national economy. However, intensive work will be required to realize this potential.”

The results include proposals for promoting the development of the hydrogen economy.

To ensure the advancement of the hydrogen economy, Latvia needs to implement several strategic action directions, including: supporting the production of green and low-carbon hydrogen; introducing hydrogen technologies in energy and heating; promoting the use of hydrogen as a fuel in transport; fostering industrial decarbonization; ensuring efficient and safe hydrogen transmission, distribution, and storage; creating a stable regulatory environment; supporting education and science; and encouraging investment attraction.

Recommendations for the Strategic Framework

The study defines the most important action directions for Latvia’s hydrogen economy development strategic framework: first, the research and academic environment; second, the use of renewable energy potential; third, the promotion of energy independence and sustainability; fourth, the importance of regional and international cooperation; fifth, the development of the distribution network.

“In the coming years, it will be necessary to make changes in Latvian legislation to introduce the European Union directives and regulations related to hydrogen and its market, to make use of the financing available in Europe, as well as to remove barriers to the development of the hydrogen market,” notes Armands Gūtmanis, Chairman of the Board of the association Sustainability Cluster Latvia.

Connection with European Infrastructure

If Latvia makes a strategic decision to develop hydrogen energy production, during the transition period it would be possible to use the existing methane infrastructure, whose placement could also serve the needs of developing a hydrogen transmission system. This would create a link with Estonia and Lithuania, and indirectly – with other EU Member countries. “Overall, the hydrogen economy in Latvia is currently in its early stage of development,” assesses J. Dimants. The hydrogen economy can contribute to technological innovation, the development of sustainable energy, the reduction of dependence on energy imports, and the mitigation of greenhouse gas impacts on the environment. There are already some foundations laid, including in the field of infrastructure development.

“At present, in cooperation with neighbouring gas transmission system operators (TSOs), we are developing a project idea for the creation of a hydrogen transmission system from Finland to Germany within the framework of the North–Baltic Hydrogen Corridor. To gradually implement this, Conexus Baltic Grid (Conexus), together with eight other gas TSOs from seven countries, signed a Memorandum of Understanding on June 17, 2024, for coordinated action in the development of hydrogen infrastructure and in promoting the development of the hydrogen market in the Baltic Sea region. Within this framework, companies will coordinate the design of hydrogen transmission and storage infrastructure projects in the region. In this way, Latvia’s hydrogen strategy can serve as one of the national-level drivers of sectoral development,” explains Uldis Bariss, Chairman of the Board of Conexus.

Hydrogen as a Complement to the Renewable Energy Sector

Kaspars Avots, CEO of the investment and project management company Baltic Hydrogen Group, comments that, in the company’s view, hydrogen does not compete with other renewable energy resources. “With careful joint planning, it is possible to create an efficient and independent green energy ecosystem. Nothing is lost yet in Latvia, but action must be taken now!”

K. Avots emphasizes that hydrogen is already a component of all e-fuels. “We encourage a broader assessment of green hydrogen production. Electrolysis will allow the full utilization of planned energy capacities and energy storage. Pyrolysis and gasification provide a way to process biogenic and all organic compound waste. At the same time, new technologies completely eliminate CO2 emissions by capturing carbon in a solid fraction, which is a valuable modern raw material.”

“We will take the opportunity to learn from the example of other countries, which we are already doing ourselves by involving our technicians and engineers in the construction of hydrogen projects in Sweden and Slovakia,” says K. Avots.

The goal of Baltic Hydrogen Group is to build six production facilities, storage, a logistics chain, and 23 refueling stations covering the entire territory of Latvia by 2028. “At the same time, we are closely looking at other ambitious hydrogen project developers for potential collaboration. Together it would be easier,” K. Avots notes.

Dr.sc.ing. Ilmārs Bode, Associate Professor at Riga Technical University, points out: “Hydrogen is so far an untapped opportunity in the energy sector. By using hydrogen as an energy storage medium, it can be converted into many other forms of energy, for example, producing synthetic methane, which is an environmentally friendly form of green energy, and also rationally utilizing the heat generated during the production process for heating. Hydrogen provides opportunities to more efficiently use the processes of heat and electricity production, making use of all forms of energy produced during the manufacturing process.”

Seeking Collaboration Partners in Europe

Hydrogen technologies can play a significant role, making national and ministerial strategies important.

“To demonstrate our commitment to achieving these goals, it is important to back words with actions. In addition to the already implemented EU-funded hydrogen projects in Latvia, we are proud to announce that Latvia will host the European Hydrogen Valleys Conference and the ‘Tech Tour’ investor event on September 5–6,” says Ģirts Greiškalns, Chairman of the Board of the Latvian Hydrogen Association.

The event will bring together more than 20 hydrogen valleys from across Europe, sharing their experiences and success stories, as well as seeking investors and informing them about investment opportunities. Over 30 hydrogen-related start-ups will also participate, looking to establish partnerships to develop and promote the use of hydrogen technologies both in Latvia and across Europe. “Only together can we promote innovative and sustainable energy solutions that will benefit both our economy and the environment,” notes Ģ. Greiškalns.

Ansis Zeltiņš, Director of the Freeport of Riga, emphasizes: “The Freeport of Riga currently implements several projects related to the production, storage, use, and transport of renewable energy resources, hydrogen, and alternative fuels in the port. The development of such technologies promotes high value-added port services, supports the decarbonization of the port, and creates the prerequisites for participation in new supply chains. The Port of Riga is part of the Northern European Hydrogen Valley project BalticSeaH2, which is developing hydrogen value chains and pilot projects related to the use of hydrogen in ship propulsion and onshore charging. A unified Latvian hydrogen and zero-emission technology development strategy is an important roadmap for all stakeholders in the sector for further technological and knowledge development and, most importantly, a clear signal to investors and partners that Latvian ports are ready for the development of new directions.”

In developing the study, the authors reviewed the planning documents of Latvia’s closest neighboring countries – Estonia, Lithuania, and Poland. Initiatives by several municipalities (Liepāja, Ventspils, others), Riga Airport, the Freeport of Riga, Riga Technical University, multiple companies, and responsible sectoral ministries were positively acknowledged.

The study includes results from expert surveys and focus group discussions conducted from February to June 2024.

A partially structured in-depth expert interview involved 24 industry professionals, representing organizations such as Conexus Baltic Grid, Baltic Hydrogen Group, the Liepāja Special Economic Zone Administration, Liepāja Municipality, Energy Communities, several scientific institutions, Bosch Latvia, Riga International Airport, Scania Group, Latvian Hydrogen Association, Moduls Engineering, Fokker Next Gen Latvia, Latvian Investment and Development Agency, ZAAO, Naco Technologies, Greenpower, Hitachi Latvia, Conexus Baltic Grid, Virši, and the Freeport of Riga.