Lhyfe has secured up to €11m to build a renewable hydrogen production facility in southern Sweden.
The funding has come from Klimatklivet, an investment programme supported by the Swedish Environmental Protection Agency and co-financed by the European Union.
The new hydrogen facility will be built Vaggeryd, Jönköping County.
Vaggeryd is located between Stockholm, Gothenburg, and Malmö, near major transport hubs such as the E4 motorway and national road 40, as well as nearby logistics centres.
As the transport sector transitions to lower climate footprint, including the adoption of hydrogen-powered vehicles, significant volumes of renewable hydrogen will be required, said Lhyfe.
The production facility in Vaggeryd would supply the many refuelling stations currently under construction in the area, forming a network of hydrogen supply along major transport routes.
In addition to the transport sector, the hydrogen would also be supplied to industries for heating and production processes.
With the plant, Lhyfe would be able to produce up to 4.4 tonnes of green hydrogen per day (based on 10MW of installed electrolyser capacity) to meet this market demand and contribute to the goal of achieving net-zero emissions.
The first kilograms of renewable hydrogen are expected to be produced in 2027.
It comes after Lhyfe obtained a grant from Klimatklivet in June 2024 for an equally large plant in Trelleborg.
Manager for Sweden at Lhyfe Sara Wihlborg said: “We are delighted to have been awarded this investment support, which marks our second project in Sweden to receive backing from Klimatklivet.
“Green hydrogen is a key enabler in the transition, strengthening the competitiveness of Swedish industry while increasing domestic energy security with locally produced energy.
“Additionally, the waste heat generated during the production process will be utilised in the existing district heating network in Vaggeryd.
“Lhyfe already delivers green hydrogen to industrial customers in Sweden, and with the two facilities now granted Klimatklivet support, Lhyfe ensures a robust and competitive supply solution for green hydrogen for our customers in Sweden moving forward.”