WPD has signed a memorandum of understanding with French company Lhyfe to set up a green hydrogen facility in close proximity to the former’s planned 1020MW Storgrundet offshore wind farm off the coast of Soderhamn municipality in Sweden.
The 600MW facility is planned to be built in stages starting in 2025 and is expected to be in full operation in connection with the commissioning of Storgrundet.
The plant is planned to have production capacity of about 240 tonnes of hydrogen a day.
The hydrogen plant and the wind farm will be connected jointly to the transmission network, which enables optimisation towards the electricity market and creates conditions for participating in the Swedish regulatory market through support services, the partners said.
WPD Offshore Sweden chief executive Olle Hedberg said: “We are very pleased and proud that we have landed in this partnership with Lhyfe, which is one of Europe’s most promising producers and suppliers of green hydrogen and which possesses much of the key expertise needed for this type of long-term investment.
“The project and the collaboration with Lhyfe are an important part of our strategic work in the Swedish market, where we are convinced that hydrogen has a crucial role if we are to meet the energy transition and Sweden’s ambitious climate goals.
“Already during the feasibility study phase, both companies have seen great interest from industrial players such as producers of e-fuels and ammonia producers.
“Many international companies are already looking at Sweden for establishment.
“We see their interest in our plans in Soderhamn as a clear confirmation from the market that we are right both in time and place.”
Lhyfe country manager Bjorn Santana Arvidsson said: “We are very expectant of taking the next step to realise our plans together with WPD, which is an important enabler through its project Storgrundet.
“WPD’s strong portfolio of offshore wind power makes it possible to produce hydrogen at a competitive cost, which in turn creates the conditions for the industry’s conversion to fossil freedom … here and now.
“We look forward to realising more projects of this kind. With a high level of ambition and solid capacity, we secure the future through the right steps at a fast pace. “
Soderhamn municipality business manager Ola Andersson said: “We welcome the project. In Soderhamn municipality, we have large assets when it comes to planned industrial land.
“This makes us attractive for future establishments. Hydrogen is a market for the future and I hope that the project can attract other industrial players to establish themselves here.”