The role of hydrogen in Sweden’s energy mix

– Hydrogen is important and will be part of the solution in the transition of our energy system to fossil-free. Our interim report focuses on the need for an updated and coherent regulatory framework that facilitates the deployment of hydrogen infrastructure and stimulates Swedish companies and actors to make the necessary investments,” says Jazaer Dawody.

In 2021, the Swedish Energy Agency was tasked with developing a proposal for a national strategy for hydrogen, electrofuels and ammonia, based on the objectives of climate transition, efficient energy use and robust and reliable energy supply.

The Agency’s draft strategy was published in May 2022.   Sweden’s objectives for the development of hydrogen are linked to several issues, with a particular focus on climate transition.

In addition, there are several other relevant objectives, such as how Swedish hydrogen production can contribute to increased competitiveness, opportunities for exports of fossil-free products, the transition of the transport sector, balancing of the electricity grid and agriculture’s need for the production of fossil-free ammonia as an input for the production of nitrogen fertilizer. In 2023, the Swedish Energy Agency was given a new assignment – to coordinate work on hydrogen in Sweden, which resulted in the interim report “Hydrogen and hydrogen infrastructure in the Swedish energy system” published in March, which shows the potential of hydrogen in Sweden’s energy mix. To analyze how the hydrogen infrastructure can be developed in interaction with Sweden’s other electricity and energy systems, the Swedish Energy Agency has conducted techno-economic analyses.

These focus, among other things, on how clusters of hydrogen production are developed and how this can create an interconnected infrastructure for both industry, transport and energy storage.

There are several ongoing hydrogen projects, and in terms of estimated volume of production and use, northern Sweden (electricity area SE1) dominates, where the major investments in the steel industry are located.

On the other hand, most projects are planned in the SE3 electricity area (which includes Gotland). In addition, Gotland plays an important role as being uniquely positioned in the hydrogen debate, with great need and potential in electricity generation. Cooperation and discussions with Gotland stakeholders will be an important part of the strategy development going forward.  Overview of major hydrogen projects with planned commissioning up to 2050 (data from November 2023) 

The modeling that has been done shows that the volumes of hydrogen in demand are so large that it is economical to produce the hydrogen at several different locations and to transport the hydrogen via pipeline to users.

However, Jazaer Dawody stresses the importance of further analysis:

– We need to do further modeling. Things are moving fast, and I wouldn’t be surprised if the next phase of development shows a different picture, as more projects are established and markets develop. It is also likely that the hydrogen infrastructure will differ in different parts of Sweden, in some places large-scale hydrogen pipelines may be viable and in demand, while other parts of the country will be in more nascent phases.   In a global perspective, Sweden has shown an impressive ability to drive innovation for hydrogen development, especially in the area of fossil-free steel.

However, compared to several countries, Sweden has unique challenges due to the limited gas pipeline network that is unlikely to be converted to hydrogen.   – In our future analysis, we will need to include the use of hydrogen in several areas. From emergency preparedness and backup power to shipping and aviation. This may mean planning pipelines in more places than we see today.

In addition, we need to include flexibility in the hydrogen system, where storage will be able to play a role in managing the varying needs over time.
If we have more extensive pipelines, we have the possibility to store more hydrogen,” says Jazaer Dawody.   Another important part is to secure and update the regulatory framework for the safety of hydrogen production, use and infrastructure.

This involves both existing regulations such as the Environmental Code, but also the creation of new regulations linked to the safe handling and use of hydrogen beyond the traditional industry.

This is an ongoing work, where the Swedish Civil Contingencies Agency (MSB) is also involved.   Hydrogen development continues, and the Swedish Energy Agency will submit a final report on the assignment on December 1, 2024.

Given the EU’s new regulatory framework for shipping, this also requires continued attention to be able to meet the future volume requirements for the industry’s transition.

“It is a global challenge that we also need to address nationally,” concludes Jazaer Dawody.   Read the report here.