The Swedish Energy Agency is granting SEK 16.8 million (€1.6 million) in support to OX2 and Södra Skogsägarna through the Industrial Leap initiative. They will investigate the potential for producing renewable e-methane.

The West Swedish gas grid largely distributes natural gas, with annual consumption amounting to around 7–8 TWh. A smaller share of biogas is also fed into the grid. The West Swedish natural gas market comprises roughly 32,000 users, with around 90 individual facilities consuming about 80% of all gas in the system. Many of these companies depend on gas in their processes and have limited possibilities to choose alternative energy sources. A central part of the transition is therefore to gradually replace fossil gas with renewable gas.

In the project, OX2 and Södra Skogsägarna are examining the possibility of building a plant to produce renewable e-methane. The feedstock would consist of water, carbon dioxide from Södra’s pulp mill and renewable electricity from OX2’s wind farm.

Klara Helstad, deputy head of the department for research, innovation and business development at the Swedish Energy Agency, says: 'Should a production facility eventually be implemented, the project has high potential for reducing greenhouse gas emissions, and the initiative aligns with the purpose of the Industrial Leap, which is to contribute to reduced carbon emissions.'

A future plant is estimated to have the potential to reduce emissions by 250,000 tonnes of carbon dioxide annually.