Finnish Study Paves Way for Underground Hydrogen Storage

ESPOO, Finland, Oct. 19, 2026 /CourierPR/ -- VTT Technical Research Centre of Finland and the Geological Survey of Finland GTK have collaborated with several Finnish companies to lay the groundwork for large-scale underground hydrogen storage in crystalline bedrock, a significant development for Finland's hydrogen economy. This research, funded by Business Finland, marks an important step for countries that lack the necessary underground salt caverns for hydrogen storage.

The study, part of the HUG project, assessed the feasibility of storing hydrogen underground in Finnish bedrock. The findings indicate that while Finland lacks suitable salt formations, storage caverns can be excavated in crystalline bedrock with appropriate technical solutions. This approach is crucial for regions that cannot rely on salt caverns for hydrogen storage.

Developing underground hydrogen storage facilities is a lengthy and capital-intensive undertaking. According to Pasi Valkokari, Senior Scientist at VTT and project leader, constructing a 40,000 m³ storage facility would cost approximately EUR 30 million, including planning and permitting phases. The overall project duration would be four to five years. The research has generated valuable knowledge on underground hydrogen storage alternatives and improved understanding of the opportunities and remaining uncertainties that need to be resolved.

The HUG project involved nearly twenty companies operating in Finland's hydrogen economy, including AFRY Finland Oy, BusinessOulu, Danfoss Drives Oy, and Fortum Power and Heat Oy. The project has developed a high-level storage concept covering storage structure design, operating models, geological and safety requirements, technical and societal risks, investment needs, and ecosystem models. The results provide a strong foundation for developing large-scale hydrogen storage as an integral part of future hydrogen systems.

The need for medium-scale underground hydrogen storage facilities with a volume of 10,000 to 40,000 cubic metres is expected to grow rapidly as hydrogen production and consumption volumes increase. Public investment support is critical to accelerating green hydrogen investment and the development of Finland's hydrogen economy, as well as ensuring that storage projects can move forward without delay.

Teemu Lindqvist, Geologist at GTK, emphasized the importance of geological site selection, site investigations, and material studies to ensure that the surrounding bedrock remains stable and that safety is not compromised if hydrogen were to react with other materials. The project has highlighted the need for further research into storage cavern design and safety.

Jutta Nyblom, Senior Scientist for industry collaboration and HUG2 project preparation at VTT, stated that the next phase of the research will involve the industry consortium to continue developing the research-based design requirements that will enable the development of a pilot facility and a replicable storage concept for wider deployment. The phased development of Finland's hydrogen economy is expected to see the emergence of regional hydrogen clusters, with dedicated storage facilities becoming a critical enabler of commercially viable hydrogen value chains by helping to stabilize hydrogen prices and availability.