Uniper advances renewable electrofuel project in Sweden

German energy group Uniper has signed an agreement with Swedish power company Jämtkraft to secure access to land and electricity grid connection for its sustainable electrofuel project NorthStarH2 in Östersund, Sweden.

The aim of this project is to produce e-methanol from renewable hydrogen and captured biogenic carbon dioxide (CO2). The planned facility will be set up next to the combined heat and power plant in Lugnvik.

According to Uniper, the project will play an important role in transforming the transport sector and manufacturing industry, contributing to Sweden’s net-zero goals.

Following the agreement with Jämtkraft, Uniper will now continue work to establish the production facility.

“Uniper is determined to increase the pace of the energy transition and NorthStarH2 can play a key role in the transition to a fossil-free society,” said Johan Svenningsson, Uniper’s head of Sweden.

Ylva Andersson, CEO of Jämtkraft, added: “For several years, Jämtkraft has investigated the conditions for the production of renewable electrofuels using biogenic carbon dioxide from the cogeneration plant and hydrogen produced from renewable electricity. It feels very good that Uniper wants to develop such a facility in collaboration with Jämtkraft.”

Other electrofuel projects being developed in Sweden include FlagshipONE, FlagshipTWO, and FlagshipTHREE facilities.

FlagshipONE is Europe’s first commercial-scale green electrofuel facility with a final investment decision (FID) in place. It was acquired from Liquid Wind by Danish offshore wind developer Ørsted in December 2022. The construction of the facility kicked off in May 2023.

The second plant, FlagshipTWO, is being developed by Liquid Wind in cooperation with energy services provider Sundsvall Energi. Production at the facility in Sundsvall is planned to start at the end of 2025. 

FlagshipTHREE is located in Umeå, north-east of Sweden, and is scheduled to enter the construction phase in 2024, with the facility expected to be operational in 2027. The planned production capacity is estimated at 130,000 tons of green electrofuel per year. Liquid Wind is working on this project in cooperation with Umeå Energi.