Silverdalen mill hydrogen facility
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Hultsfred Municipality, Kalmar County

Hydrogen Factory Kalmar – Silverdalen Mill

New life in a historic mill – with green hydrogen

Full capacity 2028
166 kg H₂/hour
Silverå river

About the Silverdalen project

At the old Silverdalen mill by the Silverå river in Hultsfred, industrial land is being brought back to life. Here, SHG Green Invest is building a hydrogen factory that utilizes the site's existing wind power and infrastructure to produce green hydrogen – targeting transport and maritime applications in East Götaland and Gotland.

The facility is constructed on the property Hultsfred Hällefors 11:3, which is already within the detailed plan for industry and where building permits for energy storage were granted in 2024. The hydrogen factory cooperates with a battery storage (BESS) established by Kraftbalans AB on the same property, providing increased operational reliability and opportunities for grid support services.

Water is sourced from the power plant's existing intake in the Silverå river, and the possibility of supplementing with solar panels on existing roofs – estimated at 1 GWh/year – is also being investigated.

Economics in brief

Investment 248 MSEK
Capacity 4 tons/day
Gross revenue 96 MSEK/year
Net revenue 52 MSEK/year
Payback period 6,25 years

Project advantages

Silverdalen mill offers unique conditions for hydrogen production with existing infrastructure and strategic location.

Historic mill

Reuse of existing industrial land and infrastructure

Existing infrastructure

Access to wind power and electrical infrastructure on site

Water access

Existing intake from Silverå river for electrolysis process

Battery storage

Cooperation with BESS for increased operational reliability

Timeline

2026

Quote/contract

Final negotiations and contracts with customers and suppliers

2027

Permits & engineering

Permit processes, detailed engineering and equipment ordering

2028

Full capacity

Delivery, construction, commissioning and targeted full capacity

Market & customers

The project targets transport and maritime applications in East Götaland and Gotland with strategic customers already identified.

PS Energi AB

LOI signed for hydrogen refueling station in Oskarshamn

Gotland Company

Port in Oskarshamn as alternative delivery channel

Location & infrastructure

Property
Hultsfred Hällefors 11:3
Development plan
Industrial, building permit granted 2024
Water intake
Existing intake in Silverån river

Invest in industrial renewal

Contact us to learn more about investment opportunities in Hydrogen Factory Kalmar at Silverdalen mill.