Electrolysis and electro-fuels in the Swedish chemical and biofuel industry: a comparison of costs and climate benefits

About the project

To reach the national goals of a fossil-independent vehicle fleet by 2030, a 100 % renewable power production by 2040 and a climate neutral society by 2045, it is essential that the production of renewa­ble fuels, the de-fossilisation of Swedish industry at large scale and the development of a more flexible electrical system including large-scale storage now gain momentum. One way that could contribute partly to an electrical system in balance and partly to an increased production of renewable substances, is to utilise the increasing access of renewable, low cost electricity for electrolysing water into hydrogen – so-called electro-hydrogen – and oxygen.

Renewable electro-hydrogen can be used as energy storage or as fuel in for example fuel cell vehicles, but may have its outmost potential in processes that replace fossil feedstock and/or energy carriers in various industrial processes such as steel, chemical and biofuel production. Furthermore, the electro-hydrogen can be used to bind larger CO₂ emissions from e.g. biogas plants, steel or cement industry and via so-called electro-fuel processes (sometimes also called power-to-gas or power-to-fuel) generate valuable products such as methane and methanol in a circular economy. The different applications have different degrees of maturity, but are generally still far from a broad commercial penetration.

The aim of this project has been to provide a public, easily accessible summary of the conditions re­quired for electro-hydrogen to be considered as a viable alternative for de-fossilising various industrial sectors in Sweden. The analysis is based on a number of case studies focused on the Swe­dish chemical and biofuel industry and having the Swedish cement and steel industry as references for comparison of the demand for electro-hydrogen.