The project, which began in 2021, is supported by the state to the tune of €5 million.

While the Tallinn hydrogen taxi initiative is one step forward, several other hydrogen pilot projects are emerging across Estonia as part of a broader push toward clean energy.

Energy, renewables and district heating firm Utilitas has said it plans to launch hydrogen production and open two hydrogen refueling stations as early as next month.

This would facilitate 30 taxis, running under the Bolt brand, to start providing services in the city.

At the end of 2023, the state-owned Port of Tallinn (Tallinna Sadam) received €10 million to establish hydrogen production at Muuga, a port just east of the capital.
This funding is expected to cover the cost of one public refueling station and eight hydrogen-powered vehicles.

Meanwhile, Eesti Energia, also state-owned, plans to use a similar amount of funding to set up hydrogen production near the Purtse wind farm in Ida-Viru County and to establish refueling stations in Tartu and in Sauga, near Pärnu.

Among other initiatives, three hydrogen buses are expected to start operating.

One of the most ambitious projects is also planned for Paldiski, where green energy firm Derivaat NH3 aims to use hydrogen in the production of ammonia.
The first hydrogen production facility to become operational will be Utilitas' plant, however.

According to Aivo Lokk, head of business analysis at Utilitas, an electrolyzer, a critical technology for producing low-emission hydrogen, has already been set up in Väo, on the outskirts of Tallinn, and the first batch of green hydrogen was produced in December last year.

Lokk said: "The full testing of this system is still ahead. In addition to the electrolyzer, the system includes hydrogen purification and cooling equipment."

"The project also includes two refueling stations—one at the hydrogen production site in Väo and another at the Alexela filling station on Peterburi tee [in Tallinn]. The refueling equipment has been installed and is now awaiting comprehensive testing."

"As for the vehicles, 30 Toyota Mirais are already in Estonia," Lokk added.

The Toyota Mirai is the first mid-size hydrogen fuel cell vehicle (FCV) to be mass-produced and sold commercially; Bolt will provide the taxi services using these vehicles, which cost around €74,000 each at dealerships when new.

Excluding the investment in production facilities, refueling stations, and vehicles, the cost of running a hydrogen taxi is roughly the same as operating a gasoline-fueled taxi.

"The cost per 100 kilometers is around €10," Lokk said.

The company expects that the 30 Toyota Mirais will consume about 40 tonnes of hydrogen annually.

The Väo electrolyzer has the capacity to produce 120 tonnes per year.
While initial production will not reach full capacity, Lokk said that once the refueling stations become operational, demand will rise, as evidenced by the already existing use of hydrogen as a fuel, including by private car owners.

"There are already hydrogen enthusiasts in Estonia who own vehicles and other devices that use hydrogen. They would certainly be able to purchase hydrogen," Lokk went on.

"A magnet factory is being built in Narva, and this will also consume hydrogen, and initial discussions have taken place with them. We have also received pricing inquiries about hydrogen costs, with interest coming from both Latvia and Finland. Since we have hydrogen transport trailers, we can deliver it over longer distances," he added.

Lokk said that state support is essential for hydrogen adoption, as the market alone is not yet ready to justify large investments in expensive infrastructure.
Nonetheless, in order to develop the tech, a start must be made somewhere, "Just as 20 years ago, electric transport and heating required subsidies," Lokk noted.

Lokk also suggested that if Utilitas moves forward with its planned wind farm in the Gulf of Riga, electrolyzers could be installed there as well.

"Hydrogen production is an excellent energy storage solution as it can be quickly regulated and makes use of surplus energy. This hydrogen can then be further processed into ammonia or e-fuels. Some international projects are also using hydrogen for aviation fuel production," Lokk added.

Electrolysis capacity for dedicated hydrogen production has been growing in the past few years. Electrolysers use electricity to split water into hydrogen and oxygen, using renewable electricity in the case of Green hydrogen (also known as GH2 or GH2).

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