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Lhyfe and wpd for production of green hydrogen in connection with offshore wind farm in Sweden

4/12/2022

Press Release - Lhyfe

Lhyfe and WPD Offshore AB enter into collaboration on large-scale production of renewable green hydrogen in connection with Storgrundet offshore wind farm, Söderhamn municipality (Sweden)
The cooperation agreement between the renewable green hydrogen supplier Lhyfe and the wind power company wpd creates a strong partnership for the companies’ ambition to become leading suppliers of green hydrogen in Sweden, and also clarifies the good conditions that exist in the Swedish market.

The green hydrogen production site will be located close to and directly connected to the Storgrundet wind farm, in order to guarantee the source of green electricity. The installed power at Storgrundet offshore wind farm is planned at 1 GW, which corresponds approximately to Forsmark’s nuclear power reactor no. 1. For optimal utilization of the hydrogen plant, the capacity of the hydrogen production is planned at 600 MW for a production of about up to 240 tonnes per day.

Both the hydrogen plant and the wind farm will be jointly connected to the transmission network, which enables optimization also for the electricity market, providing the conditions for participation in the Swedish regulatory market through support services.

The facility is planned to be located on an industrial site in the municipality of Söderhamn, in close proximity to the Storgrundet offshore wind farm. The conditions for grid connection, access to green electricity and sufficient capacity in the initial phase are very good. This enables a security in establishing production capacity of green hydrogen. The potential for realizing the project on the full scale is linked to further new establishment of further processing / use of green hydrogen in the same area. The project also see great potential in connecting to the Nordic Hydrogen Backbone. The various industries and ongoing projects located in the surrounding region represent many potential offtakes of the renewable hydrogen that will be produced on site.

Electricity from offshore wind power used to produce green hydrogen is an attractive substitute for fossil energy and fuels in manufacturing processes and transport. The green hydrogen can supply the industry as well as the transport sector with fossil-free energy.

wpd and Lhyfe are now laying together important cornerstones for meeting the global climate challenge. Sweden’s unique conditions with good wind conditions, large biomass and ambitious climate goals create very good conditions for many new jobs and strengthened international competitiveness.

"We are very pleased and proud that we have landed in this partnership with Lhyfe, which is one of Europe’s most advanced and promising players in the production and supply of green hydrogen. Lhyfe possesses the key expertise needed for this type of long term investment and complements wpd in terms of technical skills. The project and the collaboration with Lhyfe are an important part of our strategic work in the Swedish market, where we are convinced that hydrogen has a crucial role if we are to meet the energy transition and Sweden’s ambitious climate goals".

Olle Hedberg, CEO at wpd Offshore Sweden.

"We are very expectant of taking the next step to realize our plans together with wpd, which is an important enabler through its wind park project Storgrundet. wpd’s strong developments in offshore wind create the long-term cost level for the production of green electricity that is needed to realize large-scale production of green hydrogen at the right cost level, to enable an industrial long-term conversion to fossil-free … now! We look forward to continuing to make a decisive contribution to the realisation of such projects. The ambition is high, the capacity is solid and the future is secured by us taking the right steps at a fast pace".

Björn Santana Arvidsson, Area Manager Nordics & UK at Lhyfe

"We welcome this project! In Söderhamn Municipality, we have large assets and great conditions when it comes to suitable industrial sites. This makes us attractive for new establishments of industries. Hydrogen is a market for the future and I hope that the project can attract other industrial players to establish themselves here".

Ola Andersson, Business Manager at Söderhamn Municipality

"Already during thepre-study phase, both partieshave seen great international interest from, such as, e-fuel producers and ammonia manufacturers – many international players in these areas are already looking at Sweden for establishment. We see the interest in our plans in Söderhamn as a clear confirmation from the market that we are right out both in time and place".

Olle Hedberg, CEO at wpd Offshore Sweden

"It takes courage and capability to create a big change like this with really large-scale green hydrogen production, as a natural connection to the Storgrundet project. Together we have both the courage and the capacity, and together with other partners we can make an even bigger impactin deploying the green transition. This significant project also confirms French Lhyfe’s strategic presence in the Swedish market, where the local team is already working on several other large-scale green hydrogen plants projects in the Nordic region".

Björn Santana Arvidsson, Area Manager Nordics & UK at Lhyfe