Lhyfe, a producer and supplier of renewable energy is raising up to € 11 million in funding from Sweden’s Klimatklivet investment program, facilitated by the Swedish Environmental Protection Agency and co-funded by the European Union. Lhyfe will fund the construction of a new renewable hydrogen production facility in Vaggeryd, Jönköping County, southern Sweden.

Vaggeryd is an important location strategically between Stockholm, Gothenburg, and Malmö. Therefore, it can supply hydrogen and meet the region’s growing demand.

Increasing Demand for Hydrogen for Transport Decarbonization

With transport sector decarbonisation, the demand for renewable hydrogen will always keep going up. In this respect, the new production facility will introduce green hydrogen production with a capacity to produce up to 4.4 tons a day using a 10MW electrolyser. The facility’s hydrogen will support the development of a network throughout southern Sweden.

The green hydrogen will power transport, heat local industries, and support production, playing a bigger role in reducing emissions.

A Key Step in Sweden’s Green Hydrogen Strategy

Lhyfe’s Vaggeryd plant will be a key step in Sweden’s green hydrogen development strategy. It will begin production in 2027 and provide customers with its first kilogram of renewable hydrogen. This project adds to Lhyfe’s previous Klimatklivet grant for a Trelleborg facility, expanding the hydrogen network in southern Sweden.

The Vaggeryd project’s investment will cover 35% of costs, supporting development, design, equipment, and construction efforts.

Also read: Lhyfe and Masdar Partner to Boost Green Hydrogen Production

Lhyfe is a green hydrogen leader with facilities in France and Germany and additional facilities under construction across Europe. Lhyfe’s Bouin plant has been running since 2021, and by mid-2024, the company will employ 200 people across 12 countries.

Sara Wihlborg, Country Manager for Lhyfe Sweden, said, “We are delighted to have been awarded this investment support, which marks our second project in Sweden to receive backing from Klimatklivet. Green hydrogen is a key enabler in the transition, strengthening the competitiveness of Swedish industry while increasing domestic energy security with locally produced energy.”

She added, “Additionally, the waste heat generated during the production process will be utilized in the existing district heating network in Vaggeryd. Lhyfe already delivers green hydrogen to industrial customers in Sweden, and with the two facilities now granted Klimatklivet support, Lhyfe ensures a robust and competitive supply solution for green hydrogen for our customers in Sweden moving forward.” 

The hydrogen production process will also generate waste heat to support Vaggeryd’s local heating network.

The next steps include securing approvals, permits, and a final investment decision to move the project forward. After securing the permits, Lhyfe will build the facility and create a strong green hydrogen network in Sweden.

Xodus, a global energy consultancy, has unveiled an innovative digital dashboard aimed at illuminating the financial aspects of carbon dioxide (CO2) transport across Europe as reported by Carbon Herald. This new, web-based platform is designed to help users evaluate the costs associated with moving captured CO2 to various destinations throughout the continent.

A Collaborative Effort to Support Carbon Capture and Storage

The CCSA collaborated to develop the dashboard, which stands as a leading resource for companies evaluating the commercial viability of their CCUS-related strategies. The tool provides economic models for CO2 transport and also storage in the European Union (EU), European Economic Area (EEA), and the UK.

Empowering Stakeholders Across the CCUS Ecosystem

The platform by Xodus allows emissions producers to calculate the CO2 transport costs when moving it to offshore storage sites across Europe. Additionally, storage providers can use the tool to analyze the geographic demand for their services, and policymakers can access valuable data to shape regulatory frameworks that optimize access to CO2 infrastructure.

Also read: Fugro to Lead Ground Investigation for Innovative CO2 Transport Pipeline in Belgium

Key Insights from CCSA CEO

Olivia Powis, CEO of the CCSA, “A Europe-wide CO2 market is within reach and it is essential that industry and policymakers have economic modelling, as it can provide important insights into feasibility, risk management, and financial planning for projects and clusters.”

She added, “As our report into accelerating a Europe-wide CO2 storage market found, there is an exciting opportunity to cut CO2 storage costs by 20% across Europe and save billions annually if the EU and UK break down policy barriers and make cross-border CO2 storage happen.”

Furthermore, this comprehensive dashboard is the result of an 18-month effort involving a team of advisory specialists, energy development experts, and geospatial analysts. The team plans to update the tool regularly to keep it relevant and accurate as the CCUS sector evolves.