Värö e-NG

TES, OX2 and Södra are advancing plans for an e-NG (electric natural gas) facility at the Värö peninsula in Varberg, Sweden, by entering the Pre-Front-End Engineering Design (Pre-FEED) phase. The decision follows the signing of a Letter of Intent in January 2025 and the successful completion of an initial feasibility study assessing the technical and commercial viability of the concept. The facility is designed to produce 1.2 TWh of e-NG (e-methane) annually. e-NG is produced capturing biogenic CO₂ from Södra’s pulp mill at Värö and combining it with hydrogen produced onsite using renewable electricity. The Pre-FEED phase which will be carried out over a one-year period, is partly supported by SEK 16.8 million (~€1.6 million) in funding from the Industrial leap (Industriklivet), the Swedish Energy Agency’s programme for industrial decarbonisation which is part of the EU Recovery and Resilience Facility (RRF) and Next Generation EU. The funding will form approximately 50% of the Pre-FEED and development costs.