Vattenfall and fuel producer Preem have started a study into large-scale production of fossil-free hydrogen in Sweden.
The move represents the next phase of the partnership’s attempts to produce fossil-free hydrogen for biofuel production.
A research will examine opportunities for building a large-scale production facility at the refinery in Lysekil.
Preem’s target of producing 5 million cubic metres of biofuel by 2030 may result in a reduction of transport emissions of up to 12.5 million tonnes of carbon dioxide, equivalent to about 20% of Sweden’s total emissions.
This shift in production will require a sizable supply of hydrogen.
For this reason, Vattenfall and Preem have decided to look into the possibility of meeting Preem’s hydrogen needs with fossil-free hydrogen from extensive water electrolysis.
The study, planned to be completed by summer, will not only look into hydrogen production, but also the refinery’s future electrical supply.
Should the study prove positive, the next step may be to plan for constructing the first electrolysis facility at the Lysekil refinery, amounting to between 200MW and 500MW.
Preem head of sustainable development Peter Abrahamsson said: “Increased production of biofuel is one of the cornerstones of Preem’s overall, long-term business strategy.
“At the same time, we are working hard to reduce production emissions. Investing in fossil-free hydrogen could create opportunities for producing more biofuel while reducing emissions at our refineries.”
Vattenfall head of strategy Andreas Regnell added: “We are very positive toward our partnership and taking the next step with Preem.
“Fossil-free transport is one of the most important focus areas for reducing a third of Sweden’s carbon dioxide emissions.
“Partnership and electrification via fossil-free hydrogen are vital for creating a fossil-free society.”