Swedish developer Vattenfall and Swedish fuel producer Preem will jointly explore opportunities to develop a value chain linking offshore wind and hydrogen with the refining industry on Sweden’s west coast. Investors want to explore the possibility of a rapid transition away from fossil fuels – from 2030 at latest.
In 2019, Vattenfall and Preem signed a three-year agreement that lays the groundwork for expanding cooperation in green hydrogen for biofuel production, electrification and electricity supply. Companies are now entering the feasibility study phase.
Vattenfall sees potential in reducing carbon emissions in industries such as refining, petrochemicals, steel and fertilizers using carbon-free electricity and hydrogen.
Western Sweden has a highly specialized refining and petrochemical industry and great potential for offshore wind development. Svenska Kraftnät’s recently unveiled plans to expand the transmission network in Sweden’s maritime territory create important conditions for the implementation of these plans.
Today, two-thirds of Sweden’s carbon dioxide emissions come from industry and transportation. Sweden’s climate target stipulates that carbon dioxide emissions from the transport sector must be reduced by 70 percent between 2010 and 2030.
According to Preem, green hydrogen will enable both a reduction in carbon emissions at refineries and an increase in the production of green fuels, such as HVO and sustainable jet fuels.
“Our strong and growing Swedish offshore wind development portfolio, which currently stands at more than 20 TWh, presents great opportunities. That’s why Vattenfall initiated the concept on Sweden’s west coast, where offshore wind power and hydrogen production can play a key role in the transition to a fossil-fuel-free industry, says Anna Borg, President and CEO of Vattenfall.