Power utility Vattenfall and fuel producer Preem have formed a three-year cooperation agreement to develop hydrogen for biofuel production, electrification and electricity supply.
The two Swedish companies said their first project involved producing fossil-free hydrogen through water electrolysis at Preem’s refinery at Hisingen outside Gothenburg.
The 20MW plant would be Europe’s largest using water electrolysis for refinery operations.
“We have a great opportunity here to produce fossil-free fuels on a large scale,’ said Vattenfall chief executive Magnus Hall (pictured right).
Preem chief executive Petter Holland (pictured left) said the availability of fossil-free hydrogen was currently low.
“The cooperation with Vattenfall enables us to produce fossil-free hydrogen through electrolysis, which will increase the degree of renewability in our fuels by a few more percent,” he said.
Preem has set a target of producing 3m cubic meters of renewable fuels by 2030, which together with direct electrification would account for the majority of the reduction in carbon dioxide emissions in the Swedish transport sector.
Preem said it has identified several strategic investment opportunities to become less fossil-dependent.