The funding is from the Klimatklivet investment program, which is supported by the Swedish Environmental Protection Agency and co-financed by the European Union.
Vaggeryd is strategically located between Stockholm, Gothenburg, and Malmö, near major transport hubs such as the E4 motorway and national road 40, as well as nearby logistics centres. As the transport sector transitions to lower climate footprint, including the adoption of hydrogen-powered vehicles, significant volumes of renewable hydrogen will be required. The production facility in Vaggeryd would supply the many refuelling stations currently under construction in the area, forming a network of hydrogen supply along major transport routes.
In addition to the transportation sector, the hydrogen would also be supplied to industries for heating and production processes.
With the plant, Lhyfe would be able to produce up to 4.4 tonnes of green hydrogen per day (based on 10 MW of installed electrolyser capacity) to meet this market demand and contribute to the goal of achieving net-zero emissions. The first kilograms of renewable hydrogen are expected to be produced in 2027. Combined with the previous grant Lhyfe obtained from Klimatklivet in June 2024 for an equally large plant in Trelleborg, these two units would create a supply network for renewable hydrogen in southern and central Sweden.
The investment support, which will fund the development and design phases, equipment procurement and construction work, represents approximately 35% of the total estimated investment cost for the project.
“Green hydrogen is a key enabler in the transition, strengthening the competitiveness of Swedish industry while increasing domestic energy security with locally produced energy. Additionally, the waste heat generated during the production process will be utilized in the existing district heating network in Vaggeryd. Lhyfe already delivers green hydrogen to industrial customers in Sweden, and with the two facilities now granted Klimatklivet support, Lhyfe ensures a robust and competitive supply solution for green hydrogen for our customers in Sweden moving forward,” said Sara Wihlborg, country manager Sweden at Lhyfe.
The implementation of the project is subject to the granting of foreign investment authorisation, operational and environmental permits, building permits, and a financial investment decision.