Lhyfe joins Swedish duo to create green H2-driven industrial cluster

French green hydrogen producer Lhyfe (EPA:LHYFE) has teamed up with Swedish renewables developer OX2 AB (STO:OX2) and local green fertiliser company Velarion Group to create a hydrogen-based industrial cluster in northern Sweden.

The project, which is now entering the conceptual stage, will be situated in Gronsta just north of the Torpshammar locality in Ange municipality, Vasternorrland County. The idea is to source electricity from the Marktjarn wind farm that is being developed by OX2 in Torpshammar to power a 300-MW electrolyser that will be built by Lhyfe in the same locality for the daily production of up to 100 tonnes of green hydrogen. OX2's wind park will be able to produce some 1.4 TWh of power a year.

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Velarion, on the other hand, will construct one of the world’s first carbon-neutral fertiliser plants within this cluster and use Lhyfe’s hydrogen output to produce green ammonia for its own production of fertiliser.

“Due to the large potential production capacity, we are in dialogue with several companies that aim to refine hydrogen and its by-products. These collaborations will help build a local ecosystem that contributes to the region’s economy and job creation,” stated Sara Wihlborg, Country Manager Sweden at Lhyfe.

In order to be realised, the project needs to receive the necessary operating licences and environmental permits. It is also subject to a final investment decision (FID).