Lhyfe, OX2, and Velarion are teaming up to create a hydrogen-based industrial cluster in the Ånge municipality of Sweden.
The project, which will be located in Grönsta, just north of Torpshammar, aims to integrate wind power with large-scale green hydrogen production to deliver carbon-negative products.
The collaboration will see onshore wind developer OX2 create a wind farm in Marktjärn, Torpshammar capable of producing 1.4 TWh (terawatt hours) of electricity annually. The green power generated will be used to fuel a hydrogen production unit operated by green hydrogen specialist Lhyfe.
The unit is expected to produce up to 100 tonnes of green hydrogen per day, with an electrolysis capacity of approximately 300 MW (megawatts).
“We are excited about the potential of this project, which will utilise 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.
Lhyfe is in talks with various companies interested in refining hydrogen and its by-products, which could help build a local ecosystem around hydrogen.
“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,” explained Sara Wihlborg, Country Manager Sweden at Lhyfe.
As part of this initiative, Velarion plans to establish one of the world’s first carbon-neutral fertiliser plants within the cluster.
The facility will leverage green hydrogen to produce green ammonia, cutting carbon emissions traditionally associated with fertiliser production. The green ammonia produced will cater to the growing demand for sustainable agricultural inputs.
Currently in the conceptual phase, the project’s progress will depend on the results of further studies, obtaining the necessary permits and securing financial backing.
The green hydrogen market in Sweden is poised for growth, driven by the country’s commitment to achieving Net Zero emissions by 2045. The market is currently valued at around $50 million but is projected to reach $1.2 billion by 2030, with a compound annual growth rate (CAGR) of 35% over the next decade.
The country aims to produce at least 5 GW (gigawatts) of green hydrogen by 2030, supported by increasing investments in renewable energy infrastructure. Major projects, such as the HYBRIT initiative, are expected to reduce Sweden’s CO2 emissions by 10% by replacing fossil fuels with green hydrogen in steel production.
Green hydrogen clusters in Europe
Europe hosts several industrial hydrogen clusters advancing green hydrogen for industrial applications. These include the North Sea Port Cluster (Belgium and the Netherlands), focusing on steel and chemical industries; H2V Industry in Normandy, France, targeting green hydrogen for local chemical and refining sectors; and the Port of Rotterdam (Netherlands), a hub for hydrogen production and import.
The Hydrogen Valley in Northern Netherlands integrates hydrogen across transport, industry, and heating, while Germany’s Ruhr Area focuses on converting industrial processes to hydrogen. In Portugal, the Sines Cluster aims to produce and export green hydrogen using solar and wind energy.
