Sweden Moves Forward on Green Gas Factory Using Forest Waste

Sweden is taking a major step toward energy independence with a breakthrough project that transforms sawmill waste into climate-friendly fuel.

Renewable energy developer OX2, forestry group Södra, and project developer TES just entered the design phase for a pioneering facility in Värö, Sweden. The plant will capture carbon dioxide from a pulp mill and combine it with hydrogen made from renewable electricity to create electric natural gas, or e-NG.

The clever part? This green gas is chemically identical to fossil natural gas, meaning it can flow through existing pipelines and power current industrial equipment without any modifications needed.

Sweden currently imports large amounts of fossil natural gas and biogas from Denmark to fuel chemical plants and industrial facilities. This new facility, slated to open in the early 2030s, could produce 1.2 terawatt hours of e-NG each year, directly replacing imported fossil fuels.

The Swedish Energy Agency is backing the project with €1.6 million in funding through its Industrial Leap program, covering about half the design and development costs. This support is part of the EU's broader push to help industries transition away from fossil fuels.

The Ripple Effect

Sweden's natural advantages make it an ideal testing ground for this technology. The country has abundant renewable electricity, access to biogenic carbon dioxide from its forestry industry, and a strong industrial base ready to adopt cleaner alternatives.

The e-NG produced here could serve multiple purposes beyond replacing pipeline gas. Maritime shipping companies could use it as fuel, chemical manufacturers could use it as feedstock, and various industrial processes could tap into it as an energy source.

TES CEO Marco Alverà noted that Sweden has all the foundations needed to pioneer large-scale e-NG production. Other Nordic countries are watching closely, with similar projects already emerging in Finland.

The beauty of this approach is that it creates a circular system: forests absorb CO2 as they grow, pulp mills release that biogenic carbon during processing, and the e-NG facility captures it before combining it with clean hydrogen to make usable fuel.

By December, the pre-design phase will wrap up, bringing Sweden one step closer to producing its own clean industrial gas and showing the world how forest products and renewable energy can team up to replace fossil fuels.