Question & Answers
The ultimate location will have a best-in-the-world Photo Voltaic Power Potential (ruling out EU), available land, high level of PV knowledge, on the Atlantic, close to EU/SE, and being a stable and relatively low cost country.
What is competition like?
We see many other projects announced, good! None at our cost level or size, and because of our location (PVPP) and concept we will always be the low cost producer in what will become a functioning green hydrogen global commodity market.
How will you transport the hydrogen?
The ambition is to have co-located off takers for the bulk volume. During ramp up we will ship hydrogen in high-pressure containerized tubes. However, tech is evolving, and cost for e.g., cooling hydrogen to cryogenic level/storage/transport/storage is creeping below $2/kg, so with a future production price around $1 we will be able to compete head-to-head with anything and anyone anywhere. This will happen before 2030, but not initially.
Why produce your own water?
For the electrolyzers to run at an optimum level it is very important that the water is consistent on a level that you will never get in the normal water grid. However, we will be able to produce much more than the approx. 15 million m3 we will need for hydrogen production, actually about ten times more, which we could put on the grid thus helping the local community with water supply.
Is it really feasible to start production in 2025?
It is a stretch target which we will work very hard to deliver on. Time is running out, climate change is here already, we don’t have time for comfortable targets.
Is this scalable?
Almost seamlessly in two parallel processes: Firstly it is scalable with a factor 1-2.5 without any additional capital, by procuring additional energy from wind power during the darker hours. This means that already in stage #1 we can produce up to 1.25m ton green hydrogen; Secondly we have envisaged additional investments in 3 steps, but this can be done in both smaller or larger steps depending on demand. Just adding more PV and electrolyzer capacity. Our long term plan include scaling up with new production plants in other countries with similar PVPP, using the exact same concept plus learnings from the first project.
What is your initial capital requirements?
Surprisingly small, we have come a long way on a shoestring, and raised another SEK2.3m in April 2023. The big-ticket item going forward is to procure an external and independent feasibility study which will be required before even attempting to raise several $bn in capital and other funding for the first project. The total funding required from now to launching the first project is estimated to SEK100m.
Do you have any customers?
Yes, we have several good discussions ongoing, and one customer has interest in co-locating an ammonia plant taking 100 kton hydrogen pa.
Are you seeking EU or government funding or subsidies?
No, we are not. In the current global climate situation, governments will have to build a hydrogen infrastructure and possibly support research and piloting of new technologies. We need neither at this point as we only use proven technology and can compete without subsidies. In a not so distant future we do expect that an infrastructure for hydrogen materializes enabling safe transport of our product at a reasonable cost.
What about available hydrogen electrolyzer capacity, this set-up will require a lot?
Yes, we will need to procure many GW’s of capacity. This could be a bottleneck and have an impact on the ramp up. In 2020 only 200MW was produced globally, in 2021 400MW, and in 2022 we think +1GW. For 2023 one single new CN factory has announced an output of 1,3GW. But demand is also increasing, so yes, supply of electrolyzers could be a limiting factor.