The study focuses on a potential facility that would capture biogenic CO₂ from Södra’s pulp mill in Värö and combine it with renewable hydrogen to produce e-NG, a renewable gas that can replace fossil natural gas. It is scheduled to run until summer 2027 and is intended to generate the technical, legal, and commercial documentation required ahead of any future decision on a FEED phase and a potential investment.
The work covers land conditions, permitting processes, water supply, raw-material flows, technical solutions, market dynamics, business model, and access to renewable electricity. It will also examine how a full-scale facility could be integrated with Södra’s Värö pulp mill, including the supply of biogenic CO₂ and energy collaboration.
The partners said a future facility could produce around 1.2 TWh of e-NG per year, corresponding to about 15% of current volumes in the West Swedish ga grid.
Under the project structure, Södra would supply the biogenic CO₂ generated in the pulp mill’s processes and provide expertise for industrial integration. OX2 would develop the renewable electricity needed for renewable hydrogen production, while TES would provide e-NG production technology and experience in building the infrastructure required to deliver the renewable gas to market.
Johannes Bogren, Executive Vice President of Södra Bioproducts, commented: “For us, this project is about creating long-term value throughout the value chain. By making use of the biogenic CO₂ already present in our processes, we can develop a business that enhances profitability while contributing to the industry’s need for renewable energy solutions. At the same time, we increase the value of every tree and reduce dependence on fossil gas in Swedish and European industry. It’s a step that combines business logic with resource efficiency – and that is exactly how we want to drive our development forward.”
Jenny Gotthardsson, Mill Manager of Södra Cell Värö, said: “The pilot trials we are conducting in Värö this spring for the capture of biogenic CO₂ show strong potential to turn flue gases into a raw material that creates value and new revenue in our operations. It is a good example of how we are working to make more of every tree while strengthening our competitiveness.”
The project is funded through the Industrial Leap, a Swedish Energy Agency program for industrial decarbonization, which is part of the EU Recovery and Resilience Facility and Next Generation EU.
