13 Jul 2021 | 15:51 UTC

Vattenfall, Preem advance plan for 50 MW electrolyzer at Swedish refinery

Highlights

Feasibility study concluded

Next step in spring 2022

Refineries a focus for hydrogen

Swedish refiner Preem and state-owned utility Vattenfall are to advance green hydrogen plans for the Lysekill refinery, the companies said July 13.

A feasibility study has shown "very good conditions" for an electrolysis plant at the refinery in southwest Sweden, with the companies now studying a 50 MW unit "with the ambition of taking the next step in spring 2022."

"The results of the next phase will be the basis for potential decisions for the timeline ahead," a Vattenfall spokesman told S&P Global Platts.

Implementation depends, among other things, on an environmental assessment, the statement added.

Hydrogen is required to produce biofuels and is currently derived from natural gas.

Preem aims to ramp up biofuels production to 5 million cu m/year by 2030, which would cut 20% of Sweden's annual emissions or 12.5 million mt/year.

Preem started to convert Lysekill into Scandinavia's biggest producer of renewable fuels.

Sweden aims to cut 2030 transport emissions by 70% compared with 2010.

The EC's "Fit for 55" package to be published July 14 is to provide a regulatory frameworks with transport a key focus.

Refinery focus

Refineries represent about half of current global demand for hydrogen at around 35 million mt in 2020, according to Platts Analytics.

Europe's biggest electrolyzer opened July 2 at Shell's Rheinland refinery in Germany with 10 MW capacity, with projects scaling up rapidly.

The CEO of Germany's Heide refinery Juergen Wollschlaeger told Platts in June that he aims to scale up to 300 MW by end-2025.

SCALING UP ELECTROLYZERS AT REFINERIES (selected CNWE projects)

Refinery
MW
Developer
Electrolyzer
Start
Notes
Rheinland, DE
10
Shell
ITM Power
2021
Operating
Fredericia, DK*
20
Everfuel
Nel
2022
FIDed
Schwechat, AT
10
OMV
tba
2023
FIDed
Heroya, NO*
20
Neste
Sunfire
2023
FIDed
Heide, DE
30
Heide,Orsted
tba
2023
Funding secured
La Mede, FRA
40
Total, Engie
tba
tba
Applied for funding
Lysekill, SW
50
Preem, Vattenfall
tba
tba
First study concluded
Lingen, DE
50
BP, Orsted
tba
tba
IPCEI shortlisted
Rheinland, DE
100
Shell
ITM Power
2024
Pending FID 2022
Heide, DE
300
Heide, Holcim
tba
2025
IPCEI shortlisted
Fredericia, DK*
300
Everfuel,
tba
2025
IPCEI shortlisted

Source: S&P Global Platts (*renewable hydrogen production for refinery use)

Vattenfall is also involved in Sweden's HyBrit project with steel maker SSAB and LKAB for fossil-free steel.

A first 4.5 MW pilot unit is operational in Northern Sweden and planning underway for a 400-500 MW electrolyzer by 2026.

In Germany, Vattenfall proposed a 100 MW electrolyzer at its closed Hamburg-Moorburg coal plant.

Platts cost-based assessment of renewable hydrogen (Netherlands power, PEM electrolysis with capex) was Eur6.29/kg July 12, double the cost of natural gas-derived hydrogen with CCS.