Swedish nuclear power firm OKG—a joint venture between utilities Fortum and Uniper—has signed a contract to sell pink hydrogen produced at its Oskarshamn nuclear plant to a commercial offtaker.

OKG has been producing pink hydrogen from an electrolyser at the site for some time to assist with cooling the generators. But the firm has had an oversupply of hydrogen since closing two of the three reactors at the site. It is this oversupply that OKG will sell at first, according to CEO Johan Lundberg.

“Initially, it is about relatively small volumes. But as we have the expertise as well as the plant and the infrastructure, I see a very good potential to expand this business,” he says.

The hydrogen plant is being overhauled with a new control system and replacement components in order to expand operations. If successful, OKG will then look to increase production volumes.

“I see a very good potential to expand this business” Lundberg, OKG

“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 Johan Svenningsson, CEO of Uniper Sweden.

The commercial offtaker is likely to use the hydrogen for industrial applications, but in future it could also be used in the local transport sector, according to Andreas Erlandsson, a municipal councillor in Oskarshamn.

“The hydrogen gas produced at OKG can be useful in the long term in Oskarshamn as we transition our industry and transport infrastructure,” he says.

Pink power

The ability of nuclear reactors to produce large volumes of baseload electricity and heat with virtually no emissions gives them an advantage over intermittent renewables.

And once built, the operational costs of nuclear reactors are not exposed to large fluctuations in commodity prices, as uranium is a comparatively cheaper fuel than natural gas, with lower price volatility.

EDF and Russia’s state-owned Rosatom announced earlier this year that they would collaborate on hydrogen projects in Russia and Europe using nuclear technologies, for example electrolysis or methane conversion with carbon capture and storage.

Nuclear power plants produce large amounts of electricity and heat, both of which can be used to make low-carbon hydrogen.

Pink hydrogen produced by nuclear power could soon be cost-competitive with green and blue hydrogen, according to Brussels-based nuclear industry group Foratom.

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Author: Tom Young