UK-based renewable energy giant RES has signed a sales agreement with Prime Capital for the project Alby hydrogen plant in Ånge municipality, Sweden.
Following the signing, Prime Energy Infrastructure Fund II (PGEIF II), a fund managed by Prime Capital, will become the sole shareholder of project Alby. RES will stay involved in the project, which will provide sustainable aviation fuel.
The plant will be supplied with 500MW of renewable energy from the Tovåsen substation. Through electrolysis, water will be broken into green hydrogen and oxygen.
Such hydrogen is then combined with captured carbon dioxide and further processed into synthetic sustainable aviation fuel (eSAF). Under the ReFuelEU regulation, eSAF is promoted by the European Union as key to reducing emissions in the aviation sector in the upcoming years.
The plant is expected to generate additional jobs in the municipality of Ånge, strengthening its profile as a pioneer in the renewable industrial transition.
Project Alby is another chapter to the collaboration between Prime Capital and RES. Prime Capital owns several other RES-developed energy projects including the nearby located Björnberget Vindkraft AB.
Chief executive officer of RES in the Nordics Matilda Afzelius said: “This is a great day. 500MW capacity allows for a significant renewable aviation fuel production.
“In a broader perspective, it is an important step in the transition to fossil-free fuels. For RES Nordics, this hydrogen development agreement with Prime Capital is a final exam. A final exam which we passed with honours, indicating that RES Nordic develop marketable, attractive and sustainable energy projects that also create positive socio-economic effects in places like Ånge.”
Head of infrastructure and managing director at Prime Capital Dr Mathias Bimberg added: “The Nordic region is exceptionally well suited for the production of synthetic fuels due to the low cost of electricity, the high share of renewables in the energy mix and the large availability of water.
“With the Alby project, we are acquiring a very attractive site – both in terms of location and commercial conditions – in Sweden, which will enable the development of a large-scale Power-to-X plant in close co-operation with RES.”