The high expectations for hydrogen in Oulu and globally can only be realised through advancing research

Oulu has become a significant hydrogen hub for both research and industry utilising hydrogen. Hydrogen research is a profiling area of research at the University of Oulu with a wide range of collaborative research across different discplines. Hydrogen is also one of the central elements in the green transition strategy for the City of Oulu. This article outlines the multiple benefits of using hydrogen for various energy needs and reviews the hydrogen projects planned for the City of Oulu.
A woman scientist holding a tube with glowing yellow substance in a laboraty with colorful lights

City of Oulu supports significant hydrogen investments by various actors, which, if realised, will promote the green transition and bring hundreds of jobs. Here, the University of Oulu plays an important role, being one of Finland’s key centres for hydrogen research. The city of Oulu’s strategic goal is to attract green transition industry investments to the region. In recent years, locals have heard about several planned hydrogen production and processing plants in the Oulu area.

“There are currently five hydrogen production and processing projects planned for Oulu: one in Oritkari, one in Laanila, and three in Pyyryväinen,” says Joonas Söderholm, city of Oulu´s green transition project manager.

The planned projects alone would bring billion-euro investments and hundreds of jobs to Oulu. The hydrogen economy is thus expected to become a major economic pillar for the Oulu region. The University of Oulu is one of the most important hydrogen research centres in Finland and Northern Europe and has been instrumental in launching the Finnish Hydrogen Research Forum.

Green hydrogen can replace fossil fuels

One of the top benefits of hydrogen use is that green hydrogen can replace the use of fossil fuels and reduce emissions from energy consumption on a broad scale.

“Hydrogen is the most common element in the universe and the lightest gas. It is an excellent energy carrier—hydrogen contains three times more energy by weight than fossil fuels,” says Professor Marko Huttula, leader of the H2FUTURE research programme at the University of Oulu.

In nature, hydrogen is most often found bound to other atoms, i.e., as hydrogen derivatives. The most important hydrogen derivative is water, a compound of hydrogen and oxygen. Hydrogen research at the University of Oulu focuses on methods to sustainably separate hydrogen from other atoms. “Hydrogen can be obtained, for example, by splitting water into hydrogen and oxygen using electricity or solar energy, allowing it to be used as a clean energy source. This is the basis of current green hydrogen production,” Huttula continues.

Hydrogen is not an energy source itself, but rather an energy storage and transport medium, which can significantly reduce emissions.

“For example, the steel industry produces up to eight percent of the world’s emissions, but with hydrogen, steel production can be made virtually emission-free,” Huttula explains.

The hydrogen economy needs experts

Hydrogen will play a major role in future energy production, as burning hydrogen produces water instead of carbon dioxide emissions. In addition, hydrogen can be produced using renewable energy sources.The hydrogen economy is expected to become part of the energy systems, industry, and transport of advanced carbon-neutral societies in the future.

“At the University of Oulu, hydrogen research focuses especially on advancing clean hydrogen production technologies, such as solar hydrogen produced by photocatalysis and thermochemical processes, as well as the use of hydrogen in steel production and the development of materials that can withstand hydrogen. Research is needed to ensure the hydrogen economy serves society,” says Huttula.

A strong example of research-driven success is the Hycamite hydrogen pilot plant in Kokkola, based on emission-free methane pyrolysis developed by Professor Ulla Lassi. The plant is the largest in Europe, and a company focused on off-grid solar hydrogen was established alongside it a year ago.

In the future, a wide range of hydrogen expertise will also be needed in the Oulu region. That’s why the University of Oulu, Oulu University of Applied Sciences, and the OSAO vocational education consortium have developed a new hydrogen school, with a curriculum covering all levels of education. The purpose of H2School is to prepare experts for a field that is just emerging. The University of Oulu is also involved in many projects where the latest research is applied to the needs of companies and industry in the Oulu region.

Hydrogen can bring local and global benefits

Hydrogen economy projects serve not only as drivers of local vitality but also as solutions to global problems such as the climate crisis.

“The Oulu region has excellent conditions for attracting hydrogen economy projects, including a strong electricity grid, abundant renewable energy production in nearby areas, water and biogenic carbon dioxide resources, an active research and business sector, and a skilled population,” emphasises project manager Söderholm from the City of Oulu.

Oulu has always been good at finding solutions to even the most challenging problems, says Söderholm. With the projects currently planned, the Oulu region would already be one of the most significant hydrogen economy hubs in the Nordics. Interest from hydrogen economy actors in the Oulu area remains strong, and discussions with potential new actors are ongoing.

Oulu—its city, educational and research institutions, and companies—thus has an excellent opportunity in the hydrogen economy to create both local vitality and solutions to global problems.

“Oulu has always been good at finding solutions to even the most challenging problems,” summarises Söderholm.

Uses of Hydrogen

Hydrogen can be used for, among other things:

  • Energy transfer and storage

  • Electricity production

  • Heating (example: a pilot project in Pateniemenranta in cooperation with the University of Oulu, where a hydrogen heating system is being built for an apartment block area)

  • As fuel: trucks, aeroplanes, cars (example: a refuelling station for heavy traffic is coming to Utajärvi in cooperation with the University of Oulu, and a research refuelling point at the University of Oulu)

  • As a raw material in industry

  • Minimising emissions in the steel industry (example: the steel industry alone produces up to 8% of the world’s carbon dioxide emissions, which can be reduced by 99% with hydrogen—in other words, hydrogen can make steel production almost emission-free)

Created 27.11.2025 | Updated 27.11.2025