Sweden e NG project at Värö moves to pre FEED stage

KEY TAKEAWAYS:

OX2, Södra and TES begin pre FEED work on Sweden’s Värö e NG facility
Plant aims to produce 1.2 TWh of green gas annually in early 2030s
Project supported by Swedish government industrial decarbonisation funding

A major Sweden e NG project at Värö has entered the pre FEED stage as renewable developer OX2, forestry cooperative Södra, and energy infrastructure firm Tree Energy Solutions move forward with plans to produce large scale synthetic natural gas.

The partners will carry out front end engineering and design studies for the facility through December following earlier feasibility work. If approved, the plant could begin operations in the early 2030s.

Sweden e NG project Värö targets large scale green gas production

The planned facility will produce around 1.2 terawatt hours of electric natural gas annually.

e NG, also known as synthetic natural gas, is created by capturing biogenic carbon dioxide from Värö pulp mill and combining it with hydrogen generated onsite using renewable electricity.

This process transforms captured carbon into a fuel that is chemically identical to fossil natural gas.

Because the gas is compatible with existing infrastructure, it can be used directly in pipelines and industrial systems without modification.

Why Sweden is pushing synthetic natural gas

Despite its strong renewable energy profile, Sweden still imports large volumes of natural gas and biogas to supply industries that rely on gas based processes.

Most supplies arrive through pipelines from Denmark, with fossil gas still dominating the mix.

Projects like the Värö facility aim to reduce reliance on imported fossil fuels while supporting the country’s industrial decarbonisation targets.

Government funding supports development phase

The project has received SEK 16.8 million in funding from Swedish Energy Agency through the Industriklivet programme.

This initiative supports industrial decarbonisation projects and forms part of broader European funding under the EU Recovery and Resilience Facility and Next Generation EU.

The grant will cover roughly half of the pre FEED and development costs.

Potential uses for e NG fuel

Synthetic natural gas can play a major role in sectors that are difficult to electrify.

Possible applications include:

Maritime fuel for shipping
Feedstock for the chemical industry
Energy supply for industrial processes

According to TES co founder and CEO Marco Alverà, Sweden’s abundant renewable electricity and access to biogenic carbon sources make it well positioned to lead large scale e NG production.

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