Lhyfe, OX2 and Velarion are working together to create a hydrogen-based industrial cluster in the Swedish municipality of Ångge.
The project, located in Gronsta, just north of Torpshammer, aims to integrate wind power with large-scale green hydrogen production to provide a carbon-negative product.
Under the partnership, onshore wind developer OX2 will build a wind farm at Marktjahn in Torpshammal capable of producing 1.4 TWh (terawatt-hours) of electricity per year. The green electricity produced will be used to fuel a hydrogen production unit operated by green hydrogen specialist Lhyfe.
The unit is expected to have an electrical generating capacity of around 300MW (megawatts) and produce up to 100 tonnes of green hydrogen per day.
“We are excited about the potential of this project as it will utilise electricity from the Marktjahn wind farm to power a green industrial cluster, enabling sustainable local industry and increasing the attractiveness of further industrial facilities in Önge,” said Anders Nilsson, head of onshore wind at OX2.
Lhyfe is in negotiations with various companies interested in refining hydrogen and its by-products, which could help build a regional ecosystem around hydrogen.
“Due to the large production capacity potential, we are in discussions with several companies looking to refine hydrogen and its by-products. These collaborations help build a local ecosystem that contributes to the local economy and job creation,” explains Sara Wilborg, Lhyfe's Country Manager Sweden.
As part of this effort, Bellarion plans to build one of the world's first carbon-neutral fertiliser plants within the cluster.
The facility will utilise green hydrogen to produce green ammonia, reducing the carbon emissions traditionally associated with fertiliser production, which will meet the growing demand for sustainable agricultural inputs.
Currently in the conceptual stage, progress of the project depends on the outcome of further studies, obtaining necessary permits and securing funding.
Sweden's green hydrogen market is expected to grow due to the country's efforts to achieve net-zero emissions by 2045. The market is currently worth approximately $50 million and is projected to grow at a compound annual growth rate (CAGR) of 35% over the next decade, reaching $1.2 billion by 2030.
Supported by growing investment in renewable energy infrastructure, the country aims to produce at least 5GW (gigawatts) of green hydrogen by 2030. Major projects such as the HYBRIT initiative are expected to reduce Sweden's CO2 emissions by 10% by replacing fossil fuels in steel production with green hydrogen.
European Green Hydrogen Cluster
Europe has several industrial hydrogen clusters promoting green hydrogen for industrial applications, including the North Sea Port Cluster (Belgium and the Netherlands) focusing on the steel and chemical industries, H2V Industry in Normandy, France targeting green hydrogen for the local chemical and refining sector, and the Port of Rotterdam (Netherlands), a hub for hydrogen production and import.
The Hydrogen Valley in the north of the Netherlands is integrating hydrogen in transport, industry and heating, while the Ruhr area in Germany is focusing on hydrogenating industrial processes, and in Portugal, the Sines cluster aims to produce and export green hydrogen using solar and wind energy.
