Lhyfe and WPD launch Offshore Wind-to-Hydrogen partnership in Sweden
WPD Offshore AB has entered into a Memorandum of Understanding (MoU) with the green hydrogen supplier, Lhyfe, to jointly establish and directly connect a facility for green hydrogen production to wpd’s planned Storgrundet offshore wind farm in Söderhamn, Sweden.
The goal is to achieve a total installed capacity of 600 MW, which makes the project one of the most ambitious green hydrogen projects announced in Sweden and Europe, the Nantes-headquartered Lhyfe said.
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.
Lhyfe possesses the key expertise needed for this type of long-term investment and complements wpd in terms of technical skills,” Olle Hedberg, CEO at wpd Offshore Sweden, said.
”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.”
The green hydrogen production site will be located close to and interconnected with the Storgrundet wind farm, in order to guarantee the source of green electricity. Lhyfe will design, build and operate it together with wpd.
The installed power planned for the Storgrundet offshore wind farm is 1 GW. For optimal utilization of the hydrogen plant, the planned hydrogen production capacity is 600 MW for a production of about up to 240 tonnes per day, Lhyfe said.
Both the hydrogen plant and the wind farm will be jointly connected to the power grid, 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, Lhyfe said. This is said to provide security for establishing the green hydrogen production capacity.
”We are very expectant of taking the next step to realize our plans together with wpd, which is an important enabler through its wind farm project Storgrundet,” Björn Santana Arvidsson, Area Manager Nordics & UK at Lhyfe, said.
”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 realization 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.”
The potential for realizing the project at full scale is linked to the development of further processing and/or use of green hydrogen in the same area. The project also sees great potential for connecting to the Nordic Hydrogen Backbone. The various industries and ongoing projects located in the surrounding region represent many potential offtakes for the renewable hydrogen that will be produced on site.
”Already during the pre-study phase, both parties have seen great international interest from companies such as e-fuel producers and ammonia manufacturers – many international players in these areas are already looking to locate themselves in Sweden,” Hedberg said.
”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.”
Electricity from offshore wind power used to produce green hydrogen is an attractive substitute for fossil energy and fuels in manufacturing processes and transport, Lhyfe said. The green hydrogen can supply the industry, as well as the transport sector with fossil-free energy.
Ola Andersson, Business Manager at Söderhamn Municipality: ”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.”