Renewable green hydrogen supplier Lhyfe and wind power developer wpd Offshore 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 1 GW offshore wind farm Storgrundet in Söderhamn municipality, Sweden.
The proposed facility is planned to be built in phases starting in 2025; it is expected to be in full operation in connection with the commissioning of the wind farm. The capacity of the hydrogen production is planned for about 240 tons 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.
“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,” says Olle Hedberg, CEO at wpd Offshore Sweden. “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.”
“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,” mentions Björn Santana Arvidsson, area manager for the Nordics and the U.K. at Lhyfe. “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.”
“Already during the pre-study phase, both parties have seen great international interest from e-fuel producers and ammonia manufacturers – many international players in these areas are already looking at Sweden for establishment,” states Hedberg. “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.”
