Plagazi and Litra join hands for transport and handling of circular hydrogen

November 1, 2023, by Aida Čučuk

Sweden’s Plagazi and Norway’s Litra have signed a letter of intent (LoI) that serves to state 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.

According to Plagazi, the background of the agreement comes from the mutual sentiment towards reducing emissions and promoting the production of significant volumes of sustainable forms of energy such as circular hydrogen.

Litra operates, and intends to operate, a transport infrastructure for deliveries of compressed circular hydrogen gas and is interested in further contributing to the reduction of greenhouse gases into the atmosphere, Plagazi said, noting that it is interested in collaborating with Litra in order to load and optimize transport equipment and deliver circular hydrogen to various sites indicated by Plagazi.

Dan Nilsson, CEO of Litra, commented: “Today we are very happy that Plagazi and Litra have agreed to begin the journey to jointly build an infrastructure for circular hydrogen, which is one of the prerequisites for achieving a climate-neutral industry and climate-neutral transport business.”

“With our knowledge and long experience in transportation of different types of energy, we believe that Litra is the natural logistics partner and will be able to add circular hydrogen to the palette of energy types we handle. It will also give us an opportunity to operate our own vehicles with another non-fossil fuel which is an important part of our responsibility taking to create a sustainable world. We look forward to a constructive and long-term business cooperation with Plagazi.”

Gustav Granberg, CEO of Plagazi, stated: “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.”

To note, according to Plagazi, Köping Hydrogen Park in Sweden is expected to annually produce 12,000 tons of green hydrogen from 66,000 tons of non-recyclable waste and provide the Köping municipality with 10 MW of district heating. In May 2023, Plagazi announced it will collaborate with services provider Petrofac on the development of the project.