Preem and Vattenfall have signed a three-year agreement. The agreement provides increased collaboration between companies around fossil-free hydrogen for biofuel production, electrification and electricity supply.

Work on the first joint project will be intensified within ongoing preparation for fossil-free hydrogen production through water electrolysis at Preem’s refinery on the island of Hisingen outside Gothenburg.

The aim is to develop a plant with a capacity of 30 MW, which would be Europe’s largest water electrolysis plant for the refinery sector.

“Partnerships with Preem and Swedish industry are crucial if we are to achieve success in the most important issue of our time: meeting the climate challenge,” said Magnus Hall, Vattenfall’s President and CEO.

“The new agreement deepens, reinforces and broadens the partnership. It gives us the potential to produce fossil-free fuel on a large scale.”

“Hydrogen is an important component in our production of renewable fuels but supplies of fossil-free hydrogen are low. The partnership with Vattenfall allows us to produce fossil-free hydrogen using electrolysis, which will increase the renewability of our fuels by a few more percent,” said Peter Holland, Preem’s CEO.

“The plant maximises the currently available grid capacity, which needs to be expanded to reach its full potential,” Holland concluded.

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