"With the right strategies and support, Sweden can take a prominent role in the global transition to renewable energy using hydrogen and electrofuels, but this development depends on how we prioritize the resources needed in climate transition, and it is a question we must continue to discuss," says Mirjam Särnbratt, project manager at IVL Swedish Environmental Research Institute and author of the report.

The report compiles the demand for hydrogen and electrofuels, mainly within the transport, steel, and chemical industries, and notes that it is expected to increase in the future. Scenario analysis indicates that Sweden's demand for hydrogen may exceed production capacity until 2035, but a reverse situation may arise by 2045.

The main challenges for large-scale use of hydrogen in Sweden include a lack of infrastructure for hydrogen transmission and distribution, such as via gas pipelines, and insufficient capacity for electricity supply in certain locations. To enable market growth, the report also emphasizes the need for clearer political incentives and improved infrastructure.

Despite the challenges, there is significant potential for low-carbon hydrogen production due to Sweden's advantageous energy mix compared to many other European countries. Against this backdrop, the report points to a future where Sweden could become a net exporter of hydrogen.

"Continued research in this area should focus on identifying the political incentives needed to promote development. There is also a need for technological advancement and collaboration to realize Sweden's potential in this area," says Marika Olsson at IVL, author of the report.