Hydrogen-based industrial cluster planned in Sweden

Hydrogen production specialist Lhyfe, onshore wind developer OX2, and green fertilizer producer Velarion are joining forces to create a hydrogen-based industrial cluster in Ånge municipality, Sweden.

This project, situated in Grönsta just north of Torpshammar, will combine wind power with large-scale green hydrogen production to generate carbon-negative neutral products.

OX2 is developing a wind farm in Marktjärn, Torpshammar, with a planned annual production capacity of 1.4TWh. This green electricity will power the hydrogen production unit that Lhyfe plans to instal in Torpshammar with a capacity of up to 100 tonnes of green hydrogen per day (electrolysis capacity of approximately 300MW).

As part of the project, Velarion will build a carbon-neutral fertilizer plant within this cluster. The facility would utilize green hydrogen to produce green ammonia, significantly reducing carbon emissions in fertilizer production.

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The project is now entering the conceptual phase. Implementation of the project will be subject to the conclusions of this study, the granting of operating licenses and environmental permits, and financial investment decisions.

Anders Nilsson, head of Onshore Wind at OX2 commented in a statement: "We are excited about the potential of this project, which will utilise electricity from wind farm Marktjärn to power a green industrial cluster, enabling sustainable local industry and enhance the attractiveness for further industrial establishments in Ånge".

Sara Wihlborg, country manager Sweden at Lhyfe added: “Due to the large potential production capacity, we are in dialogue with several companies that aim to refine hydrogen and its by-products. These collaborations will help build a local ecosystem that contributes to the region’s economy and job creation”.