Fossil-free hydrogen

We are actively involved in the development of innovative solutions to decarbonise industry as well our own operations through fossil-free hydrogen.

Besides direct electrification (by using batteries instead of conventional vehicle engines or by replacing a gas boiler with an electric boiler) Vattenfall sees indirect electrification through fossil-free hydrogen as an important solution to decarbonise the value chains of heavy emitting industries, for example steel, refinery, chemicals, agriculture and transports. It also has the potential to reduce CO₂ emissions when used as an alternative to gas in the heating sector. Vattenfall wishes to act as a catalyst for this development.

The potential of hydrogen to decarbonise different industries and sectors is big since it can be used as a carrier of energy when replacing fossil fuels like gas or oil, as well as a catalyst in industrial processes by replacing fossil materials like coking coal. Of course it is crucial that the hydrogen used is fossil-free itself, by using fossil-free electricity to split water into hydrogen and oxygen through electrolysis.

We are driving the development of hydrogen applications as a pioneer in several projects. For example, in the HYBRIT joint venture with Swedish mining company LKAB and steel manufacturer SSAB where focus lies on decarbonising the steel manufacturing value chain with fossil-free steel available on the commercial markets by 2026. Other examples are mentioned below.

More renewable energy is needed

As one of the leading producers of electricity from fossil-free energy sources, especially from offshore wind, we are able to supply large quantities of fossil-free electricity for the production of hydrogen. In the future, we see a very close link between hydrogen production and our power generation.

Today, fossil-free hydrogen production costs need to decrease, for market competitiveness. It is therefore important to develop this technology further on an industrial scale. The conditions must be created for this. The European and national hydrogen strategies provide a good basis. Germany, for example, aims to become a leader in hydrogen technology targeting 10 GW of electrolysis capacity by 2040, while the UK is aiming for 5 GW of low carbon hydrogen production capacity by 2030. Sweden aims for 3 GW by 2030 and 8 GW by 2040.

Vattenfall contributes significantly to this transition through various projects across Europe, helping to create the infrastructure needed for a future hydrogen economy. 

When can hydrogen be named fossil-free?

Hydrogen is produced by splitting water into its components hydrogen and oxygen. This is done by the chemical process of electrolysis by means of electricity. If this electricity comes exclusively from fossil-free energy sources, we are talking about fossil-free hydrogen.

Read more about some of our hydrogen initiatives below.