OX2, Nordkalk to partner on e-fuel production in Sweden

OX2, Nordkalk to partner on e-fuel production in Sweden Wind turbines in the Baltic Sea. Author: Håkan Dahlström. License: Creative Commons, Attribution 2.0 Generic

Swedish renewables developer OX2 AB (STO:OX2) and Finnish limestone-based products maker Nordkalk Oy have decided to team up to explore opportunities for e-fuel production on the Swedish island of Gotland in the Baltic Sea.

The two companies will now initiate a pilot study on how a potential facility should be planned, the utilisation of the area and how the harbour of Storugns could be developed, according to a press release published by the Swedish firm today.

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The initiative may be supported by OX2’s pipeline of large-scale offshore wind projects outside the island, such as the 5.5-GW Aurora facility, that can supply the electricity and hydrogen needed for the potential future plant. The company is also active in the development of hydrogen infrastructure and is partnering in the development of a hydrogen pipeline between Finland, Aland, Sweden and Germany.

The output of the contemplated e-fuels plant may be used at Nordkalk’s own facilities to replace fossil fuels in the production process or to refine the limestone to fertilisation products. It can also be used as fuel for shipping and other heavy transports.

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Marta is an M&A and IPO specialist with years of experience covering energy deals in the US and EU.

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