The hydrogen projects planned in Sweden can reduce national greenhouse gas emissions by 30 per cent by 2045. A new strategy developed by the government initiative Fossil Free Sweden, together with companies along the value chain, points out how hydrogen can be used to reduce emissions and create innovations, jobs and export products.

As the world is waking up to the possibilities of fossil-free hydrogen, the innovative Swedish industry is ready to take a leading position. Now the Government needs to create the prerequisites for speedy scale up of the solutions for the climate and to increase the competitiveness of companies, says Svante Axelsson, national coordinator for Fossil Free Sweden.

Within the framework of the government initiative Fossil Free Sweden 22 industry and transport sectors have developed roadmaps describing how they can become fossil-free or climate neutral by 2045 while increasing their competitiveness. With conclusions from the roadmaps Fossil Free Sweden is now developing strategies for key areas that need to be addressed to speed up the transition. Hydrogen can be used in industry processes, transportation and as storage in the electricity grid and is important to many different sectors.

The cost of renewable electricity production is declining worldwide and the cost of electrolysers is expected to be halved by 2030. Fossil-free hydrogen in Scandinavia is expected to be competitive with fossil hydrogen before 2030 and the proposal in the strategy is that only fossil-free hydrogen should be rewarded in policies.

Expansion of the hydrogen infrastructure in the country can be accelerated by establishing cross-sectoral regional hydrogen clusters (Hydrogen Valleys) where existing industries use or will use hydrogen and where infrastructure such as ports and railways already exist. Sweden establishing a nationwide hydrogen pipeline is not considered a good option as Sweden lacks natural gas networks that can be converted to pure hydrogen networks.

There are currently a number of major hydrogen related industrial projects in Sweden. Several new initiatives and partnerships have been announced in 2020 and more are expected in 2021. Here are some examples:

+ HYBRIT's investment in fossil-free steel with hydrogen as a reduction agent, and LKAB's major industrialisation of the same technology for carbon-free sponge-iron.

+ Ovako is preparing the next demonstration step for steel heating using fossil-free hydrogen.

+ Both Scania and Volvo AB invest in the development of hydrogen-powered trucks.

+ Perstorp's "Project Air", where together with Fortum and Uniper, they are developing a unique process for sustainable methanol production by combining CCU (Carbon Capture and Utilisation) and gasification.

+ Preem and St1 are planning increased biofuel production using fossil-free hydrogen.

+ St1, Liquid Wind and Jamtkraft are preparing for various investments in electrofuels.

+ Nouryon plans to replace fossil hydrogen with fossil-free hydrogen for its hydrogen peroxide production.

This hydrogen strategy shows that today's known hydrogen projects in Sweden can achieve an emission reduction of almost 16 million tonnes or just over 30 percent of Sweden's national carbon dioxide emissions. In addition to this, LKAB's future exports of sponge iron will be able to provide a reduction abroad that corresponds to almost 60 percent of Sweden's national emissions.

The electricity system is key to implementing hydrogen investments in several parts of Sweden. The planning goal for electrolysis effect of 8 GW the year 2045 that is suggested in the strategy would require about 55 TWh of electricity. In short term permit processes need to be shortened so the electricity grid can be strengthened but in long term increased electricity production will also be needed.

A hydrogen infrastructure also needs to be developed, and since hydrogen pipelines are a relatively new type of infrastructure, new regulations are also needed. The Government needs to offer financing instruments as to reduce the investment risk for companies.

The strategy also suggests a fast-track study concerning the Carbon Contract for Difference, a system in which central government provides support based on the project's carbon reduction related to EU-ETS prices.

In addition, research and development will continue to be important as hydrogen is introduced into the market. There is also a need for skills enhancement within government agencies and other actors in society in relation to the new technologies and systems required for this development.

On January 21 the strategy was submitted to the Swedish Government that welcomed it and launched a national strategy based on Fossil Free

Related Links
Hydrogen strategy - Fossilfritt Sverige
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