European Investment Bank to support Plagazi’s Köping Hydrogen Park

Cleantech company Plagazi has revealed that the European Investment Bank (EIB) will provide financial advisory for the Köping Hydrogen Park in Sweden.

Courtesy of the European Commission; Photo by Mauro Bottaro

According to Plagazi, the services will be provided free of charge and will pertain to financial advisory for the project development of the park.

“This support, comparable to a grant, will provide invaluable expertise to the development of Köping Hydrogen Park when it comes to furthering the project financing, and is an incredible enabler for Plagazi’s potential as a pioneer in the waste-to-hydrogen market and hydrogen transition as a whole. Having EIB onboard as advisor in this capacity will ensure that the project continues to head in the right way when it comes to securing financing in a challenging climate,” Plagazi said.

Gustav Granberg, CEO of Plagazi, stated: “Securing advisory services from EIB in this capacity is an incredible milestone for KHP and Plagazi as a whole. In a currently globally challenging financing climate for sustainable and renewable energy projects, this is a huge vote of confidence for the promising contributions that KHP and Plagazi will make in the hydrogen market once the project becomes operational. We are grateful and excited to be working closer with EIB for the financing process for KHP and to further learn from their expertise.”

To note, Köping Hydrogen Park is expected to annually produce 12,000 tonnes of green hydrogen from 66,000 tonnes of non-recyclable waste and provide the Köping municipality with 10 MW of district heating.

In May 2023, Plagazi announced a collaboration with services provider Petrofac on the development of the project. Specifically, it was revealed that Petrofac’s Engineering and Consultancy team will assist Plagazi in establishing and defining the plant battery limits in addition to refining the plant design.

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In 2023, Plagazi also announced a project with compatriot Gotlandsbolaget for the supply of hydrogen for the next-generation Gotland Horizon fleet, and Plagazi and Norway’s Litra stated the intent for a commercial agreement between the two companies, which would enable Litra to undertake the transport of circular hydrogen from Plagazi to various industrial sites and off-takers.

Commenting on the agreement with Litra, Granberg pointed out: “Establishing the intent for a commercial agreement between Litra and Plagazi is a significant step in the right direction for enabling a large-scale hydrogen transport infrastructure in Sweden. Litra will be able to offer services that are crucial in maintaining the circular and carbon-neutral aspects of Plagazi’s production process for project Köping Hydrogen Park through the transportation of our gases, and we look forward to developing this project further with them.”