Europe’s hydrogen challenge

It’s no secret that the EU’s bullish about hydrogen, with the ambition for green and low-carbon hydrogen to cover 10% of the EU’s energy needs by 2050. For Europe, developing a hydrogen economy serves a dual purpose – contributing to its decarbonization targets, as well as fostering energy sovereignty.

Indeed, in 2022, and in response to Russia’s war of aggression in Ukraine, the European Commission set out its REPowerEU Plan, positioning hydrogen as a way for the bloc to reduce dependence on Russian fossil fuels. The plan set a short-term goal of producing 10 million tonnes and importing 10 million tonnes of renewable hydrogen by 2030.

The EU will likely fall short of these targets, according to a report by its own Agency for the Cooperation of Energy Regulators (ACER). While current European consumption of hydrogen sits at just over 7 million tonnes, it’s almost entirely (99.7%) produced from fossil fuels – Europe has five years to not only triple its hydrogen consumption, but also fully decarbonize it.

To achieve this, several things need to happen, including massive investment in infrastructure, innovation that dramatically improves production and logistics, as well as the confluence of political will and regulation that unite everything into an ecosystem with purposeful direction.

To that end, Latvia stands out as a positive example that’s actively participating on all fronts.

Latvia’s potential in the hydrogen economy

As far as hydrogen ecosystems go, the Baltic country has more to boast about than most. It’s in the process of becoming a hydrogen hotspot thanks to an impressive history of hydrogen-related innovation, developing regulation, political will, and a growing number of companies and startups in the field.

A thriving hydrogen ecosystem touching on every stage of the value chain

Among Latvia’s biggest success stories of recent years, you’ll find Naco Technologies – a deep tech startup creating specialised nanocoatings and new materials that replace the need for platinum and other expensive materials in hydrogen production. The company’s solutions may serve to dramatically reduce the cost of both hydrogen production and logistics – a major hurdle the entire sector faces for more widespread adoption.

On a more local scale, also working on fostering adoption and investing in infrastructure is Baltic Hydrogen Group. It aims to build six production plants, storage, logistics chain and 23 filling stations covering the whole territory of Latvia by 2028.

Beyond making hydrogen energy more available, this will also benefit Latvia-based projects such as Fokker Next Gen. The Dutch company is developing in Latvia a hydrogen-powered aircraft with a capacity of 120 to 150 passengers, which could reach destinations 2,500 km away. Also to their benefit is Riga Airport’s participation in the “BSR Hydrogen Air Transport – Preparation of Baltic Sea Region Airports for Green Hydrogen” project, where it joins other European airports and partners in developing the prerequisites for an airport infrastructure adapted to hydrogen-powered aircraft.

Connecting the various players into a unified ecosystem, while also facilitating new project pilots and validation, is the Latvian Hydrogen Association – headed by Aivars Starikovs, who is also a board member of the European Hydrogen Association.

Add to this world-renowned specialists such as Girts Greiskalns, Chairman of the Board of the Latvian Hydrogen Association, industry events such as the European Hydrogen Valley conference, and ongoing development and research projects, and it comes as no surprise that a recent study concluded Latvia stands out with its hydrogen energy potential.

Latvia’s natural and logistical advantages

Contributing to this potential is Latvia’s natural suitability for green innovation, particularly due to its strategic geographical positioning between Finland and Germany, where major hydrogen gas transport infrastructure is planned.

Latvia has demonstrated impressive progress in renewable energy, with electricity production from renewable sources surging to 77.6% in 2023, helping Latvia secure its position as third in the EU for renewable energy implementation. Latvia’s expansive shoreline, currently being utilized by the Elwind project, offers even greater potential for renewable energy generation.

The country’s existing connection to the Nordic energy pool provides a solid foundation for energy distribution, while the upcoming Rail Baltica infrastructure project will further enhance energy transport capabilities to the rest of Europe, helping address the continent’s energy dependency concerns.

This combination of natural resources, existing infrastructure, and planned developments positions Latvia as an ideal location for hydrogen innovation and production, supported by a population that places high value on environmental consciousness and sustainable development.

A country that’s mission-driven

As a small country, Latvia benefits from agility in its ability to align and realign institutions and policies toward strategic goals. As such, hydrogen has been defined as a priority for the Investment and Development Agency of Latvia (LIAA), which seeks to support ideas and initiatives, as well as facilitate necessary connections.

Moreover, hydrogen is set to play a significant part in Latvia’s upcoming National Zero Emissions Technology Strategy, enshrining the sector’s development as a national priority.

This proactive attitude is also appealing to international innovators, such as the aforementioned Fokker Next Gen, which Latvia is keen to attract more of. That’s why the country offers special economic zones, excellent tax regimes for startups, as well as startup visas for relocating teams, making it easy for those with ambitious plans and ideas to get their projects off the ground.

Let’s get to work

Decarbonization and energy independence are critical to the EU and its citizens. While many countries remain caught up in deliberations about green hydrogen and hydrogen at large, Latvia is rolling up its sleeves and getting to work.

If you are a do-er and want to build solutions together, you can get in on the action too – simply reach out to the Investment and Development Agency of Latvia at uk@liaa.gov.lv

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Source: https://tech.eu/2025/01/27/latvia-wants-to-become-the-european-hub-for-hydrogen-innovation-and-is-already-halfway-there/

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