Sweden’s industrial sectors, particularly chemical and manufacturing, rely heavily on imported fossil natural gas, much of it piped from Denmark. Now, a major effort to cut emissions and boost energy security is taking shape on the Värö Peninsula in Varberg.

 

The plan: build a facility to produce e-NG (Electric Natural Gas)—a synthetic, fossil-free gas designed to seamlessly replace natural gas in existing infrastructure.

 

“By combining biogenic carbon dioxide from Södra’s pulp mill in Värö with hydrogen produced on site using renewable electricity, we can create a synthetic gas chemically equivalent to natural gas, but without fossil emissions,” the project developers said.

 

The initiative is a collaboration between OX2, forest industry group Södra, and technology developer TES. If successful, it could produce up to 1.2 TWh of e-NG annually, more than quadrupling Sweden’s domestic fossil-free gas production and reducing reliance on imports.

 

“Because e-NG functions within the same system as natural gas, it can be used directly in today’s gas grid and industrial processes without requiring new infrastructure,” the team added.

 

A unique feature of the project is its integration with Södra’s pulp mill. Carbon dioxide, a natural by-product of pulp production, will be captured and converted into energy feedstock, demonstrating how industrial processes can feed into a circular energy system.

 

The project is now in the pre-FEED (early development) phase, which will run for one year. During this stage, partners will finalize technical designs, assess integration with existing industrial operations, secure network connections, and advance permitting and commercial agreements.

 

Funding support comes from Industriklivet, the Swedish Energy Agency’s industrial decarbonisation programme, part of the EU Recovery and Resilience Facility and Next Generation EU.

 

If all goes to plan, the e-NG facility could be commissioned in the early 2030s, offering a major step towards Sweden’s fossil-free energy future.