From Winter Wind to Summer Sun: Unlocking the Arctic Region's Sustainable Energy Potential

There is a persistent research gap regarding the techno-economic feasibility of renewable energy in the Arctic. This study explores the potential of Lapland, a remote region in northern Finland, to become an Arctic energy hub, leveraging its abundant renewable energy resources to produce e-fuels and e-chemicals. Using the LUT Energy System Transition Model, Lapland is simulated as a node within a country-wide energy system, enabling the exchange of electricity with other parts of Finland. The results show that levelised cost of electricity as low as 28.2 €/MWh can be achieved for an entirely renewable energy supply mix by 2050. Results show that Lapland's power generation capacity can grow from 2.2 GW in 2020 to 7.5 GW by 2050, with wind power dominating the electricity generation, eliminating CO2 emissions in the power and heat sectors as early as 2030. The study also highlights the potential for Lapland to become an e-fuel exporter, with the region's existing pulp and paper industry creating favourable conditions to use biogenic CO2 to produce e-hydrocarbons. Furthermore, over 5000 GWhth of waste heat from fuel conversion units could support local agricultural production in greenhouses and enhance food security. The findings demonstrate that Lapland can play a crucial role in fostering Finland's phase-out of net electricity imports and reduce CO2 emissions, while also contributing to the region's economic development and sustainability.