The renewable green hydrogen supplier Lhyfe and the wind power developer wpd Offshore Sweden AB have entered into a memorandum of understanding (MoU) to jointly establish and directly connect a facility for green hydrogen production to wpd’s planned offshore wind farm Storgrundet in Söderhamn municipality, Sweden.
The goal is to achieve a total installed capacity of 600MW, which makes the project one of the most ambitious green hydrogen projects announced in Sweden and Europe. The proposed facility is planned to be built in phases starting in 2025 and is expected to be in full operation in connection with the commissioning of the Storgrundet wind farm.
“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”, says Ola Andersson, Business Manager at Söderhamn Municipality.
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.
German wpd is currently active in 28 countries and is one of the world’s leading developers of onshore and offshore wind power with today over 2400 wind turbines built. wpd has identified Sweden as the most promising market for the establishment of large-scale hydrogen production. Since 2010, wpd Offshore Sweden has had a permit to build and operate the Storgrundet offshore wind farm outside Söderhamn in Gävleborg County, where the company is now applying for a renewed and updated permit. In wpd’s project pipeline, there are several promising offshore wind farms in different development phases. In collaboration with authorities, decision-makers, local people and companies, wpd’s goal is to realize profitable and sustainable projects that in the future supply Sweden with renewable and cheap energy.
“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”, says Olle Hedberg, CEO at wpd Offshore Sweden.
Founded in 2017 in Nantes, Lhyfe produces and supplies renewable green hydrogen for transportation and industry. Its production sites make it possible to source renewable hydrogen in industrial quantities and to deploy a virtuous energy model fostering a positive environmental impact. Lhyfe is already active in ten countries (France, Germany, Belgium, the Netherlands, Denmark, Sweden, Finland, Norway, Spain and Portugal). The company is a member of France Hydrogène and Hydrogen Europe. Lhyfe inaugurated its first green hydrogen production plant in September 2021. It currently has a sales pipeline of over 90 projects, spread across 11 countries and with production start dates between 2022 and 2028. A development programme for offshore hydrogen production underway by Lhyfe since 2019 will also see the world’s first offshore hydrogen production site connected to a floating wind turbine enter the test phase in the third quarter of 2022.
“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, says Björn Santana Arvidsson, Area Manager Nordics & UK at Lhyfe.