Södra, OX2 and TES are moving forward with the next phase of a project exploring the production of e-NG (electric natural gas) at Södra’s pulp mill in Värö, Sweden.
The partners have launched an in-depth feasibility study to assess permitting, technical design and market conditions required for a potential facility.
The study, supported by Sweden’s Industrial Leap program, will run until summer 2027 and will provide the documentation needed to determine whether the project should move to the next stage of development, including a potential front-end engineering and design (FEED) phase.
At the center of the project is the capture of biogenic CO₂ from Södra’s pulp production processes. The captured carbon would be combined with renewable hydrogen to produce e-NG, a synthetic gas that can replace fossil natural gas in existing industrial systems and gas networks.
The feasibility work will examine factors such as land and water conditions, raw material flows, technical solutions, permitting requirements, market demand and access to renewable electricity. It will also evaluate how a future facility could be integrated with the operations of the Södra Cell Värö pulp mill.
According to Johannes Bogren, Executive Vice President of Södra Bioproducts, the project is intended to create additional value from existing industrial side streams while helping industry replace fossil natural gas.
“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,” Bogren said.
The partners estimate that a full-scale facility could produce around 1.2 TWh of e-NG annually, equivalent to roughly 15% of the current gas demand in the West Swedish gas grid.
The project brings together complementary capabilities from each partner. Södra will supply biogenic CO₂ and industrial integration expertise. OX2 will develop the renewable electricity needed to produce hydrogen, while TES will contribute technology and experience in large-scale e-NG production and infrastructure development.
“The pilot trials we are conducting in Värö this spring for capturing biogenic CO₂ show strong potential to turn flue gases into a raw material that creates value and new revenue,” said Jenny Gotthardsson, Mill Manager at Södra Cell Värö.
The initiative is funded through Industrial Leap, a Swedish government program managed by the Swedish Energy Agency and supported by the EU Recovery and Resilience Facility and NextGenerationEU.
Södra is Sweden’s largest forest owners’ association and an international forest industry group. Owned by more than 50,000 family forest owners, the company produces market pulp, sawn timber, bioproducts and energy from sustainably managed forests.
Source: Södra
