Vattenfall and Preem are to carry out feasibility studies to assess the possibility of accelerating the development of a value chain connecting offshore wind and hydrogen with the refining industry on the Swedish west coast.
The companies said that on the Swedish west coast there is a highly specialised refinery and petrochemicals industry, great potential for offshore wind power and a strong desire to transform throughout the region.
Preem is Sweden’s largest fuel company and has begun its transition from fossil fuels to a renewable and climate neutral value chain in 2035.
Fossil-free hydrogen would enable both decarbonisation of the refineries and an increased production of renewable fuels such as HVO, renewable gasoline and sustainable aviation fuels.
An increased supply of fossil-free hydrogen also enables Preem to explore the development of e-fuels for hard-to decarbonise segments like aviation and maritime, the companies said.
Vattenfall president and chief executive Anna Borg said: “For Vattenfall, the electrification of society and industry is at the core of our business strategy.
“Our strong and growing Swedish offshore wind development portfolio of currently more than 20 TWh offers ample opportunities.
“Therefore, Vattenfall has taken the initiative for this concept development on the west coast, where offshore wind and hydrogen production can play a key role, in the transformation to a fossil free industry. Cross sector cooperation and partnerships are the way forward.”
Preem chief executive Magnus Heimburg said: “The society’s need for renewable fuels is increasing at high speed but the supply of necessary fossil-free hydrogen is still scarce.
“A new infrastructure for hydrogen from offshore wind could swiftly increase supply and speed up our transition towards a climate neutral value chain and enable production of 5 million cubic metres renewable fuels and e-fuels no later than in 2035.
“This can only be achieved if we work together and partner up.”