In Sweden, municipal energy company Jämtkraft AB and Uniper Sweden, part of Germany-headed international energy major Uniper SE have signed an agreement to develop NorthStarH2, a carbon capture and utilization (CCU) electro-fuel (eFuel) project in the municipality of Östersund.
With the NorthStarH2 project, Uniper wants to produce sustainable electro-fuel in the municipality of Östersund.
To secure access to land, a biogenic carbon dioxide (CO2) source, and an electricity grid connection, Uniper and Jämtkraft have signed an agreement.
Uniper is determined to increase the pace of the energy transition and NorthStarH2 can play a key role in the transition to a fossil-free society, said Johan Svenningsson, CEO of Uniper Sweden.
NorthStarH2, which is proposed to be established next to Jämtkraft’s biomass-fired combined heat and power (CHP) plant in Lugnvik, aims to produce electro-methanol (e-methanol) from renewable hydrogen and captured biogenic CO2.
The eFuel plant will be an important piece of the puzzle to be able to change the transport sector and manufacturing industry.
NorthStarH2 can therefore contribute to Sweden reaching the climate goal of net zero emissions by 2045.
For several years, Jämtkraft has investigated the conditions for the production of renewable electrofuels using biogenic carbon dioxide from the cogeneration plant and hydrogen produced from renewable electricity. It feels very good that Uniper wants to develop such a facility in collaboration with Jämtkraft, said Ylva Andersson, CEO of Jämtkraft.
Thanks to the availability of renewable electricity, biogenic carbon dioxide from the cogeneration plant, water, and an expanded infrastructure in the form of both road and rail, Östersund has good conditions for the e-methanol production plant.
In addition, there is a will from both Östersund municipality and Jämtkraft to be involved and drive the green transition, which is a prerequisite for success with a project of this size.
Fully developed, the plant could produce up to 100,000 tonnes of e-methanol per annum in Östersund, reducing Sweden’s fossil carbon dioxide emissions by reusing 160,000 tonnes of biogenic CO2 annually.
The aim is also to use circular solutions as far as possible, for example, residual heat from the electro-fuel production will be recovered.
In addition, the facility will increase the attractiveness of the region through, among other things, new business and job opportunities.
With the signing of the agreements between Uniper and Jämtkraft, work is now continuing to establish Uniper’s e-methanol production facility.