France-headed green hydrogen developer Lhyfe has announced that it has partnered with Sweden-headed onshore wind power developer OX2 AB and compatriot Velarion AB, an innovative company within the green fertilizer sector to create a hydrogen-based industrial cluster in Ånge municipality, Sweden.
Sited in Grönsta just north of Torpshammar, this joint project proposes to combine wind power with large-scale green hydrogen production to generate carbon-negative/neutral products.
OX2, together with forest industry major SCA, is developing an onshore wind farm in Marktjärn, Torpshammar, with an estimated annual production capacity of up to 1.4 TWh. The permit application for the wind farm was submitted in June 2024.
According to the proposed joint project, green electricity from the planned Markstärn wind farm would power a hydrogen production unit that Lhyfe plans to install in Torpshammar.
We are excited about the potential of this project, which will utilize electricity from wind farm Marktjärn to power a green industrial cluster, enabling sustainable local industry and enhance the attractiveness for further industrial establishments in Ånge, said Anders Nilsson, Head of Onshore Wind at OX2.
With an electrolysis capacity of approximately 300 MW, the proposal is to produce up to 100 tonnes of green hydrogen per day through water electrolysis.
Due to the large potential production capacity, we are in dialogue with several companies that aim to refine hydrogen and its by-products. These collaborations will help build a local ecosystem that contributes to the region’s economy and job creation, said Sara Wihlborg, Country Manager Sweden at Lhyfe.
Carbon-neutral fertilizer plant
Velarion, a key partner in this initiative, would build one of the world’s first carbon-neutral fertilizer plants within this cluster.
According to the project proposal, this state-of-the-art facility would utilize green hydrogen to produce green ammonia, significantly reducing carbon emissions in fertilizer production.
The green ammonia will cater to the increasing market demand for sustainable products.
Conceptual phase
The project is now entering the conceptual phase. Implementation of the project will be subject to the conclusions of this study, the granting of operating licenses and environmental permits, and financial investment decisions (FIDs).
Together, Lhyfe, OX2, and Velarion are making this industrial cluster possible, leveraging advanced technology to establish Ånge as the region’s green hub.
The long-term positive effects are set to position the municipality as a leading player in the sustainable industrial sector, attracting more companies.
