Sweden must invest in wind power and hydrogen – risks missing out on new industries
DEBATE. Sweden lives in the belief that we are leading the global climate transition. The truth is, however, that we were overlooked a long time ago. Large investments in electrofuels risk ending up in other countries, write representatives of the energy and chemical industry.
Sweden must act strongly in order to have any chance of sniffing first place in the adjustment race that is underway. In addition to an aggressive climate and economic policy, it is about enabling more renewable power production, sufficient capacity in the electricity grid, and a competitive investment climate for green and enabling technologies such as hydrogen.
Electrofuels have enormous potential to replace fossil fuels in industry and the transport sector. The production requires large amounts of renewable power that can be converted into green hydrogen. The hydrogen gas is then used as a raw material in a chemical process for the production of electrofuels together with captured so-called green carbon dioxide in large-scale processes. The final product is a liquid fuel that can be used domestically or exported within the EU.
The EU has set ambitious targets to reduce emissions in sectors that are difficult to electrify within the “Fit-for-55” package. From 2030, aviation and shipping must mix electrofuels in all transport that takes place within the EU, and the production of green hydrogen in the Union must be ten megatons in 2030.
There are good examples of initiatives that seek to realize the potential and the initiatives that are underway at EU level. Skyborn and Lhyfe have come a long way in designing one of these facilities for the production of liquid fuels outside Söderhamn – SoutH2port.
In order for actors to dare invest in building production of hydrogen gas in Sweden, there must be a long-term political ambition to be a pioneering country. Let’s capture the great potential together.
The electricity from the offshore wind farm Storgrundet can contribute to the production of green hydrogen, which then becomes a raw material for electrofuels. The project could soon take offensive steps towards realization, but Svenska kraftnät has recently communicated that the connection of the wind farm can only take place within a ten-year period. With the long lead times for electricity grid connections, the establishment of production of electrofuels risks going to other countries.
In Sweden, the idea often prevails that the climate transition should bear its own costs from the start. At the same time, many countries introduce support systems as a form of risk sharing, where new technology such as hydrogen production is given the necessary financial boost before it eventually reaches a commercial scale.
In the long term, the new technology generates export revenues and competitive advantages by attracting the establishment of new companies and industries.
The places that are suitable for the production of electrofuels are often in the northern parts of Sweden where there is access to renewable electricity, captured carbon dioxide and a port. These industries create many jobs, both in the short and long term, and will stand strong in future economic fluctuations.
Sweden has good conditions for making hydrogen and electrofuels the next major export industry. To get there, we need to see investments in the following areas:
• Accelerate the grid expansion and connection of offshore wind by co-planning the grid expansion with the expected additional energy production and use.
• Set national targets for how much production of green hydrogen Sweden should be able to deliver, based on the ten megatons that the EU has set for 2030. The Energy Agency has been given coordination responsibility for green hydrogen and should set an ambitious target at the final report in 2024.
• Introduce a national financial support earmarked for the production of green hydrogen to meet the goal that is set nationally. Today there is Klimatklivet, whose design is not always suitable for large investments such as hydrogen production. Inspiration can be drawn from, for example, Denmark and the Netherlands.
In order for actors to dare invest in building production of hydrogen gas in Sweden, there must be a long-term political ambition to be a pioneering country. Let’s capture the great potential together.
Sara Wihlborg, country manager, Lhyfe
Niclas Broman, managing director, Skyborn Renewables Sweden AB
Nils Hannerz, head of economic policy, IKEM
Björn Aronsson, CEO, Vätgas Sweden
The article is published Ny Teknik 23 May 2024.
