The Swedish Environmental Protection Agency's Climate Leap will support the French company with up to €11 million (SEK130m) for the development of a 10-megawatt electrolyser site in Vaggeryd in South-central Sweden.

The first batch of renewable hydrogen is expected to be produced in 2027, with the capacity to deliver 4.4 tonnes per day.

The output will supply refuelling stations currently under construction in the area. Besides the transportation sector, the hydrogen would also be supplied to industries for heating and production processes.

"We are delighted to have been awarded this investment support, which marks our second project in Sweden to receive backing from Climate Leap. Green hydrogen is a key enabler in the transition, strengthening the competitiveness of Swedish industry while increasing domestic energy security with locally produced energy," said Sara Wihlborg, Country Manager Sweden at Lhyfe.

She furthered, "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 Climate Leap support [10MW in Trelleborg], Lhyfe ensures a robust and competitive supply solution for green hydrogen for our customers in Sweden moving forward."

The support - which will fund the development & design phases, equipment procurement, and construction work - represents approximately 35% of the total estimated investment cost for the project.

Implementing the project is subject to the granting of foreign investment authorisation, operational, environmental & building permits, and a financial investment decision.

Lhyfe already installed four hydrogen production facilities (in France and Germany) and has a project pipeline totalling some 10GW across 12 countries in Europe.

Photo (the Schwäbisch Gmünd plant): Lhyfe