OX2, Södra and TES advance Sweden’s Värö e-NG project into pre-FEED phase, targeting renewable synthetic gas production by early 2030s.
Swedish renewable energy developer OX2, forestry cooperative Södra, and energy project developer Tree Energy Solutions are moving forward with plans to develop an electric natural gas (e-NG) production project in Sweden. The three partners have now entered the conceptual design stage of the initiative, beginning a pre-FEED (pre-Front End Engineering and Design) study for the Värö e-NG project. This stage will continue until December and represents a key step toward turning the concept into a large-scale renewable gas production facility.
The partners first expressed their interest in collaborating on the project by signing a letter of intent in January of the previous year. Following this, they conducted a feasibility study to evaluate the technical and economic potential of the concept. With positive findings from that assessment, the consortium has now decided to move ahead with detailed conceptual planning through the pre-FEED phase. This phase will help determine the technical configuration, project costs, and overall feasibility before proceeding to full engineering and construction planning.
The planned facility is expected to begin operations in the early 2030s. Once completed, the plant is projected to generate approximately 1.2 terawatt-hours (TWh) of electric natural gas annually. The production process will rely on capturing biogenic carbon dioxide emissions from the pulp mill operated by Södra in Värö. This captured CO2 will then be combined with hydrogen produced on-site through electrolysis powered by renewable electricity. The resulting synthetic methane, known as e-NG, can serve as a low-carbon alternative to conventional natural gas.
Sweden currently imports considerable amounts of both fossil-based natural gas and biogas to meet the needs of its industrial and chemical sectors. Much of this supply arrives through pipeline connections from Denmark. Despite the country’s ambitions to decarbonise its energy system, fossil natural gas still accounts for a large share of the gas consumed in Swedish industry. Projects like the Värö e-NG initiative aim to reduce this dependency by creating domestically produced, renewable alternatives.
Financial support for the project has also been secured from the Swedish government’s industrial decarbonisation programme. The initiative has received approximately SEK 16.8 million (around €1.6 million) in funding through the Swedish Energy Agency under the Industriklivet programme. This programme forms part of the broader European funding framework linked to the European Union recovery initiatives, including the Recovery and Resilience Facility and the NextGenerationEU.
The grant funding will cover roughly half of the pre-FEED and early development expenses associated with the project. Such financial backing highlights the strategic importance of developing low-carbon industrial solutions and advancing energy transition technologies in Europe.
Electric natural gas is often described as a “green gas” because it is chemically identical to traditional fossil natural gas. This similarity allows it to be used directly in existing gas infrastructure without requiring significant modifications. Because of this drop-in compatibility, e-NG has a wide range of potential applications. It could serve as a marine fuel for shipping, a feedstock for the chemical industry, or an energy source for various industrial processes that currently rely on fossil gas.
According to Marco Alverà, co-founder and chief executive of Tree Energy Solutions, Sweden offers ideal conditions for developing large-scale e-NG projects. The country benefits from abundant renewable electricity resources, access to sustainable biogenic carbon dioxide streams from forest-based industries, and a strong industrial ecosystem capable of supporting advanced energy infrastructure. These advantages position Sweden as a potential leader in the emerging market for renewable synthetic gas production.
If successfully developed, the Värö project could demonstrate how integrated industrial partnerships and renewable energy resources can work together to produce sustainable gas alternatives while reducing carbon emissions across multiple sectors.
