Sweden’s OKG to sell nuclear-produced hydrogen to external market

24 January 2022

Photo: Aerial view of Oskarshamn 3 (Photo: OKG)Sweden’s nuclear power company OKG said on 20 January that it is entering the hydrogen market as a producer and supplier. The first contract with an external buyer has been signed under which, the first delivery of nuclear-produced hydrogen will be completed in early 2022.

OKG has long operated a hydrogen plant in connection with the Oskarshamn NPP area. The hydrogen gas produced is used to cool the generator at Oskarshamn 3 – the only unit still operating following permanent closure of the two oldest reactors. As a result, there is an overcapacity of hydrogen, which is now being used for other purposes.

“Initially, it is about relatively small volumes. But we have the expertise as well as plant and infrastructure, and I see a very good potential to expand this business,” said OKG CEO Johan Lundberg. “The need for hydrogen will increase gradually, and we have received strong support from our owners, Uniper and Fortum, to develop this business opportunity.”

The hydrogen plant is currently being modernised, including a new control system and replacement of other components in order to expand operations.

“Our ambition is to develop the growing market for hydrogen together with Fortum. The Swedish electricity system is virtually fossil-free, and we therefore have good conditions for producing large volumes of hydrogen, which will play an important role when Sweden changes, says Uniper Sweden CEO Johan Svenningsson.

With the agreement, Oskarshamn will be the first municipality in Sweden that can offer fossil-free hydrogen produced by nuclear power. “It's of course great fun. We know how important the role of hydrogen will be for Sweden, but also that we, as a municipality, should be able to meet our climate requirements. I see in future that the hydrogen gas produced at OKG can also be useful in the long run in Oskarshamn when we change our industries and transport, said Oskarshamn municipal councillor Andreas Erlandsson.

Oskarshamn 3 is a 1450MW boiling water reactor. In 2021, the nuclear power plant delivered 11,000,000MWh of electricity, breaking the preview record from 2019 by 13,400MWh.

Photo: Aerial view of Oskarshamn 3 (Photo: OKG)



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