Vattenfall, Preem eye large-scale hydrogen production with no fossil fuels

May 6 (Renewables Now) - Swedish utility Vattenfall AB and domestic refiner Preem have inked a cooperation pact to jointly produce fossil-fuel hydrogen that can be used on a large scale in the biofuel, electrification and electricity supply industries.

The three-year agreement was announced by Vattenfall on Monday. Under its terms, the partners will start with a project for fossil-free hydrogen production through water electrolysis at Preem’s Hisingen island refinery, outside Gothenburg city. Their goal will be to set up what will be Europe’s largest water electrolysis plant for the refinery sector. The facility will have a capacity of 20 MW.

“The partnership with Vattenfall allows us to produce fossil-free hydrogen using electrolysis, which will increase the renewability of our fuels by a few more percent,” said Preem's CEO, Petter Holland, adding that supplies of fossil-free hydrogen are low. Currently, hydrogen is widely produced from fossil-fuel sources, mainly natural gas.

Preem has set a goal of producing 3 million cubic metres of renewable fuels by 2030, which, together with direct electrification, are seen to account for most of the reduction of carbon dioxide emissions in Sweden's transport sector. According to the press release, the company has identified several “strategic investment opportunities” that will help it to become less reliant on fossil fuels.