Norwegian companies mull €1bn hydrogen plant in Estonia

Norwegian-backed energy companies are planning a major green hydrogen project in southwest Estonia, with investments expected to reach €1bn, Northern Europe Energy Group and Vindr Baltics announced in separate statements. A memorandum of understanding was signed on May 8, according to Northern's press release.  

Hydrogen development across the Baltic states is accelerating as governments seek to reduce emissions, expand offshore wind capacity and cut dependence on Russian energy.

The two companies plan to build a hydrogen production plant and data centre in Haademeeste municipality in Parnu County near the Estonian-Latvian border. Both facilities would run on renewable electricity generated by wind farms.

"Power-to-X solutions, like eSAF and green ammonia, are not just energy carriers – they are critical for European energy security, for energy availability and the energy transition," said Thor Magnus Rovik, CEO of Northern, in a press release.

The companies said the hydrogen plant is expected to begin operations in 2031 and create at least 100 jobs in the Urissaare area. Vindr Baltics would supply renewable electricity through Estonia’s national grid.

"We are excited to announce that Vindr has signed a memorandum of understanding with Northern Europe Energy Group AS marking a key milestone in one of the most ambitious renewable energy projects the Baltics has ever seen," Vindr said. 

The Baltic region’s flagship initiative is the Nordic-Baltic Hydrogen Corridor, a planned pipeline linking Finland, Estonia, Latvia, Lithuania, Poland and Germany. The network is expected to transport up to 2.7mn tonnes of hydrogen annually by 2040.

“Energy policy must deliver competitive, affordable end prices and a shrinking environmental footprint. This is not ideological thinking  it is a genuine competitive advantage," said Estonia's Minister of Energy and the Environment Andres Sutt.

"Projects like the one planned in Häädemeeste show exactly how green hydrogen and renewable energy can serve both goals at once, strengthening Estonia's energy independence while attracting long-term industrial investment.” 

Lithuania is developing Klaipeda port into a regional hydrogen hub, including the Baltic states’ first green hydrogen production and bunkering facility, due to open in 2026. 

Estonia is meanwhile investing in hydrogen infrastructure and cross-border projects linking Estonia and Finland.

Latvia is also positioning itself as a future hydrogen exporter, supported by renewable energy investments, including the planned Parnu County project near the Estonian border.