RES, the world’s largest independent renewable energy company, has signed a sales agreement with the independent asset manager and financial services provider Prime Capital AG (“Prime Capital”) for the project Alby hydrogen plant in Ånge municipality. Following such signing, Prime Energy Infrastructure Fund II (“PGEIF II”), a fund managed by Prime Capital, will become the sole shareholder of project Alby. RES will stay involved and jointly with PGEIF II will develop the project.
The plant will be supplied with 500MW of renewable energy from the Tovåsen substation. Through electrolysis, water will be broken into green hydrogen and oxygen. Such hydrogen is then combined with captured carbon dioxide and further processed into synthetic sustainable aviation fuel (eSAF). Under the ReFuelEU regulation, eSAF is promoted by the European Union as key to reducing emissions in the aviation sector in the upcoming years.
In addition to reducing emissions, the project will create positive societal impacts. The plant is expected to generate additional jobs in the municipality of Ånge, thereby strengthening its profile as a pioneer in the renewable industrial transition.
Project Alby is another chapter to the successful collaboration between Prime Capital and RES. Prime Capital owns several other RES-developed energy projects including the nearby located Björnberget Vindkraft AB.
Matilda Afzelius, CEO of RES in the Nordics, comments on the deal: “This is a great day. 500 MW capacity allows for a significant renewable aviation fuel production. In a broader perspective, is an important step in the transition to fossil-free fuels. For RES Nordics, this hydrogen development agreement with Prime Capital is a final exam. A final exam which we passed with honors, indicating that RES Nordic develop marketable, attractive and sustainable energy projects that also create positive socio-economic effects in places like Ånge.”
Erik Lövgren (S), Chairman of the Municipal Board in Ånge, says: “We have long since realized that green hydrogen is a fantastic enabler both for the green transition and for our municipality. As with natural resources such as forests and ore, we also have access to cheap renewable energy – a prerequisite for hydrogen production. This is an important step on the road for Ånge, as it transforms into a developing area. We look forward to continuing our co-operation with Prime Capital and RES.”
Dr Mathias Bimberg, Head of Infrastructure and Managing Director at Prime Capital, concludes: “The Nordic region is exceptionally well suited for the production of synthetic fuels due to the low cost of electricity, the high share of renewables in the energy mix and the large availability of water. With the Alby project, we are acquiring a very attractive site – both in terms of location and commercial conditions – in Sweden, which will enable the development of a large-scale Power-to-X plant in close co-operation with RES.”
