Renewable hydrogen producer Lhyfe has secured up to €11 million in funding to build a new hydrogen production facility in Vaggeryd, Jönköping County, in southern Sweden. The funding is provided through Klimatklivet, an investment program backed by the Swedish Environmental Protection Agency and co-financed by the European Union.
The new plant will be located strategically between Sweden's major cities of Stockholm, Gothenburg, and Malmö, near key transport hubs such as the E4 motorway and national road 40. The location also benefits from proximity to logistics centers, positioning it well to support the growing hydrogen demand, particularly in the transport sector.
Lhyfe highlighted that the move is in response to the transition towards hydrogen-powered vehicles, with the production facility set to supply a network of hydrogen refueling stations currently under development along major transport routes. In addition to its use in transport, the hydrogen produced will also serve industrial sectors for heating and production processes.
The Vaggeryd plant is expected to have the capacity to produce up to 4.4 tonnes of green hydrogen per day, based on 10MW of installed electrolyser capacity. Lhyfe aims for the facility to contribute to Sweden's net-zero emissions goal, with the first kilograms of renewable hydrogen expected to be produced in 2027.
“We are delighted to have been awarded this investment support, which marks our second project in Sweden to receive backing from Klimatklivet,” said Sara Wihlborg, Manager for Sweden at Lhyfe. “Green hydrogen is a key enabler in the transition, strengthening the competitiveness of Swedish industry while increasing domestic energy security with locally produced energy.”
Additionally, the plant will integrate waste heat from the production process into Vaggeryd's existing district heating network, further enhancing its sustainability benefits.
This funding follows a similar grant awarded to Lhyfe in June 2024 for a larger hydrogen plant in Trelleborg, also in Sweden. The two projects are expected to play a key role in ensuring a reliable and competitive supply of green hydrogen to Swedish customers.
