Lhyfe, a world pioneer and pure player in renewable green hydrogen production, and wpd Offshore AB, one of the world’s leading developers of onshore and offshore wind power, 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. 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 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.

The cooperation agreement between the renewable green hydrogen supplier Lhyfe and the wind power company wpd creates a strong partnership for achieving the companies’ ambition to become leading suppliers of green hydrogen in Sweden, and also confirms the favourable market situation in the country.

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, which corresponds approximately to Forsmark’s nuclear power reactor No. 1. 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.

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. This provides security for establishing the green hydrogen production capacity. 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.

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 industry as well as the transport sector with fossil-free energy.

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

Olle Hedberg, CEO at wpd Offshore Sweden:

“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.”

Björn Santana Arvidsson, Area Manager Nordics & UK at Lhyfe:

“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. 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.”

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 ”

Olle Hedberg, CEO at wpd Offshore Sweden:

“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. 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.”

Björn Santana Arvidsson, Area Manager Nordics & UK at Lhyfe: