Sweden Net-Zero Industrial Demonstrator Grants 2025: Win Up to kr150 Million for Hydrogen, Electrification, and Carbon Capture Projects

If your industrial consortium in Sweden is ready to demonstrate net-zero technologies at commercial scale, the Swedish Energy Agency’s Industrial Demonstrator program offers substantial funding to make it happen. We’re talking about up to kr150 million per project to pilot breakthrough decarbonization technologies like hydrogen-based manufacturing, industrial electrification, or carbon capture and utilization.

This isn’t funding for incremental efficiency improvements or technologies that are already proven. The Swedish Energy Agency wants to support genuinely novel demonstrations of technologies that could transform how Swedish heavy industry achieves net-zero emissions. Think steel production using green hydrogen instead of coal, cement manufacturing with carbon capture, or chemical plants powered entirely by renewable electricity instead of natural gas.

What makes this program particularly valuable is its focus on industrial-scale demonstration, not just lab research. You’re expected to deploy technology at a scale that proves commercial viability, demonstrates real-world performance, and generates data that other companies can use to make investment decisions. For industrial consortia that have proven a technology concept but need support to build and operate a full-scale demonstrator, this funding can be transformational.

The program explicitly prioritizes projects that address workforce transition and circular economy principles. Swedish Energy Agency recognizes that industrial transformation isn’t just about technology - it’s about ensuring workers have the skills for new processes and that material flows become circular. Applications that thoughtfully address these dimensions alongside technical innovation score highest.

Key Details at a Glance

What This Grant Supports

The kr150 million can cover a wide range of costs associated with designing, building, and operating an industrial-scale demonstrator. Here’s what successful projects typically include:

Technology Design and Engineering: Detailed engineering design for the demonstrator facility, including process design, equipment specifications, integration with existing industrial processes, and safety systems. This might involve hiring specialized engineering firms, conducting computational modeling, developing control systems, and designing for eventual scale-up to commercial deployment.

Equipment and Infrastructure: The major capital costs for demonstrator construction. This could include electrolyzers for hydrogen production, reformers and conversion equipment, carbon capture units, specialized reactors or furnaces, electrical infrastructure upgrades, hydrogen storage and handling systems, or novel processing equipment. For a hydrogen steel project, this might mean a pilot electric arc furnace. For carbon capture, it might be absorption towers and compression equipment.

Integration with Existing Facilities: Most demonstrations aren’t greenfield projects - they’re integrated into existing industrial sites. You can budget for modifications to existing facilities, connection points between new and existing processes, utilities and infrastructure, and systems to ensure the demonstrator doesn’t disrupt ongoing production.

Construction and Installation: Labor and management costs for constructing the demonstrator, commissioning new equipment, testing and troubleshooting during startup, and training operators on new processes.

Operational Costs During Demonstration Period: Running the demonstrator for an extended period to generate performance data. This includes feedstock and energy costs, operator labor, maintenance, monitoring and data collection, and costs of adjusting and optimizing the process as you learn what works.

Technical and Environmental Monitoring: Comprehensive measurement and verification to document performance. Budget for sensors and monitoring equipment, data management systems, third-party verification of CO2 reductions, lifecycle assessments, techno-economic analysis, and documentation of results for public dissemination.

Workforce Training and Transition Programs: Upskilling existing workers for new processes, training programs in partnership with vocational schools or universities, safety training for new technologies like hydrogen handling, and programs to ensure a just transition for workers whose roles might change.

Circular Economy Integration: Demonstrating how by-products or waste streams can be used productively, developing markets for new material streams, or showing how the technology enables circular material flows.

Who Should Apply

This program is designed for industrial consortia that are serious about deploying breakthrough decarbonization technologies at meaningful scale. You’ve moved beyond small pilots and are ready to demonstrate commercial viability.

Industrial Consortia, Not Individual Companies: The Swedish Energy Agency strongly prefers collaborative consortia that include multiple industrial companies, relevant research institutions, and sometimes technology suppliers or regional development organizations. The rationale is that learnings from demonstrations should benefit Swedish industry broadly, not just one company. A steel company, university materials science department, electrolyzer manufacturer, and regional energy provider working together is a stronger application than a single company.

Operating in Sweden with Swedish Industrial Sites: The demonstration facility must be located in Sweden, integrated with Swedish industrial operations, and create benefits for Sweden’s industrial transition. Foreign companies can participate as consortium members or technology suppliers, but the core demonstration must be in Sweden.

Breakthrough Technologies, Not Incremental Improvements: The Agency wants to fund technologies that represent fundamental shifts in industrial processes, not marginal efficiency gains. Replacing a natural gas boiler with a heat pump might be a good investment, but it’s probably not breakthrough enough for this program. Completely electrifying a chemical process that’s historically depended on fossil fuel heat, or producing steel using hydrogen instead of coal - those are the kinds of transformations they want to support.

Readiness Level: You should be past basic research and small lab demonstrations (TRL 3-4), but not yet at full commercial deployment (TRL 9). The sweet spot is TRL 6-7 - technology that’s been demonstrated at pilot scale and is ready for industrial-scale validation. If you’re still doing fundamental research on whether something works, you’re too early. If you’re just doing a commercial deployment of proven technology, you probably don’t need this grant.

Demonstrable CO2 Reduction Potential: Your project needs to show credible pathways to significant emissions reductions. The Agency is looking for demonstrations that, if widely adopted, could remove millions of tons of CO2 from Swedish industrial emissions. Include rigorous calculations of emission reductions both for your demonstrator and for potential deployment across the relevant industrial sector.

You’re a strong candidate if your consortium can demonstrate:

• A collaborative team with relevant industrial expertise, research capacity, and technology know-how
• Clear ownership of intellectual property or license rights for the technology being demonstrated
• Substantial co-funding commitment from industrial partners (40-50% of total project costs)
• A site in Sweden where the demonstration can be integrated with actual industrial operations
• Credible technical approach backed by pilot-scale data or modeling
• Realistic plan for how the technology could be commercially deployed if the demonstration succeeds
• Thoughtful approach to workforce transition and skills development
• Integration of circular economy principles where relevant

Multi-Sector Applicability is Valued: If your demonstration has potential applications across multiple industrial sectors, emphasize this. A carbon capture technology demonstrated on a cement plant that could also work for steel or chemicals is more valuable than something applicable only to one narrow niche.

Export Potential: While the primary goal is decarbonizing Swedish industry, the Agency also values demonstrations that could lead to Swedish technology exports. If your project could position Swedish companies as technology leaders in global markets for clean industrial technology, mention this.

Insider Tips for a Competitive Proposal

Here’s what actually strengthens applications, based on patterns from funded projects and conversations with Swedish Energy Agency staff.

Start with Rigorous Baseline CO2 Quantification: Don’t provide vague estimates of emission reductions. Quantify exactly how much CO2 your existing process generates, calculate how much the new technology will reduce this (with detailed assumptions), and project how much CO2 could be avoided if the technology were widely deployed in Sweden and potentially internationally. Use recognized methodologies like ISO 14064 for GHG quantification. The more rigorous your baseline and projections, the more credible your application.

Demonstrate Strong Industrial Commitment Through Co-Funding: The size and structure of your co-funding matters as much as the amount. Substantial financial commitment from industrial partners signals that they take the technology seriously and plan to commercialize it if demonstration succeeds. Ideally, show letters of commitment for specific funding amounts, not just expressions of interest. The Agency views financial commitment as the strongest signal of genuine industrial backing.

Include Detailed Risk Assessment and Mitigation: Demonstrating breakthrough technology at industrial scale has real risks - technical failures, integration challenges, safety issues, or economic underperformance. Don’t gloss over these risks. Identify them explicitly and describe your mitigation strategies. This shows you’ve thought realistically about implementation. Reviewers are skeptical of proposals that make everything sound easy.

Plan for Comprehensive Data Collection and Public Dissemination: The value of a demonstrator isn’t just what you learn internally - it’s what the broader industry learns. Describe in detail what data you’ll collect, how you’ll verify performance claims, and how you’ll share results. The Agency wants funded demonstrations to accelerate adoption across Swedish industry, which requires transparency about what worked, what didn’t, and what it cost. Commitment to open data sharing (within appropriate IP constraints) strengthens applications.

Address Workforce Transition Explicitly: This is a scored criterion, not an afterthought. Describe specifically how existing workers will be trained for new processes, what partnerships you have with vocational training institutions, how you’ll ensure safety with new technologies like high-pressure hydrogen, and how you’ll manage the transition for roles that might become obsolete. Real workforce plans with training budgets and institutional partnerships score much higher than vague commitments to “upskill workers.”

Integrate Circular Economy from the Start: Show how your demonstrator enables circular material flows. This might mean using waste CO2 as feedstock for chemicals, capturing and utilizing waste heat, finding productive uses for by-products, or demonstrating material recycling loops. Circular economy integration should be built into the process design, not tacked on as an afterthought.

Show Pathway to Commercial Deployment: The Agency wants to fund demonstrations that lead to actual industrial transformation, not just research projects. Describe your go/no-go decision criteria - what performance or cost metrics need to be achieved for industrial partners to commit to commercial deployment? Include letters from industrial partners stating their deployment intentions if demonstration succeeds. Show that there’s a credible path from successful demonstration to widespread adoption.

Provide Realistic Cost Estimates with Contingency: Industrial construction projects typically experience cost overruns. Build realistic contingency into your budget (15-20% is standard). Provide detailed cost estimates based on actual vendor quotes where possible, not just top-down guesses. Unrealistically low budgets suggest poor planning and raise concerns about whether the demonstrator can actually be built for the proposed amount.

Leverage Sweden’s Industrial Clusters: Sweden has strong industrial clusters in specific regions. If your demonstration is located in a region with relevant industrial concentration and support infrastructure, highlight this. Projects that can plug into existing industrial ecosystems tend to have higher impact and better chances of leading to commercial deployment.

Application Process and Timeline

Here’s what to expect in the application and selection process.

Pre-Application Consultation (Recommended): The Swedish Energy Agency offers pre-application consultations where you can discuss your project concept, get feedback on fit with program priorities, and clarify application requirements. These conversations are informal and confidential. Taking advantage of this opportunity can save you from investing weeks in an application for a project that doesn’t align with program goals.

Full Proposal Submission: Applications are submitted through the Swedish Energy Agency’s online portal. The full proposal is substantial - typically 50-80 pages including technical description, consortium description, work plan, budget, risk analysis, and supporting documentation. Budget at least 8-12 weeks for a strong consortium to prepare a competitive application, including time for internal review and iteration.

Technical Review: All proposals undergo technical review by external experts in relevant fields - industrial decarbonization, hydrogen technology, carbon capture, electrification, process engineering, etc. Reviewers assess technical feasibility, innovation level, likelihood of achieving claimed performance, and appropriateness of the approach. Expect tough technical questions about your assumptions, design choices, and performance projections.

Strategic Fit and Impact Assessment: Swedish Energy Agency staff assess how well the project aligns with Sweden’s industrial decarbonization priorities, potential for CO2 reductions, replicability across Swedish industry, workforce and circular economy considerations, and likelihood of leading to commercial deployment. They’re evaluating both the technical merits and the strategic value to Sweden’s net-zero transition.

Interviews and Site Visits: Shortlisted consortia are typically invited for in-depth interviews where you present your project and answer detailed questions from the review committee. For projects integrated with existing industrial sites, the Agency might conduct site visits to understand the context and assess feasibility of integration.

Funding Decision and Contracting: Final decisions are typically made 4-6 months after the application deadline. If selected, you’ll enter negotiations on the detailed grant agreement, including milestone definitions, reporting requirements, IP terms, and data sharing commitments. Read these terms carefully - you’re making binding commitments about project delivery and data transparency.

Typical Timeline: For the September 26, 2025 deadline, expect decisions by February-March 2026, contracting by April-May 2026, and project start by mid-2026. Plan accordingly for when you need permits, equipment orders, or site preparation to begin.

Required Application Materials

Project Description (20-30 pages): This is your core technical document. Include detailed process description and flow diagrams, technology readiness assessment with evidence, integration approach with existing industrial facilities, detailed work plan with milestones, technical performance targets with justification, CO2 reduction calculations with assumptions, risk assessment and mitigation strategies, and pathway to commercial deployment.

Consortium Description: Describe each consortium member’s role and capabilities, relevant prior experience and track record, governance structure for project decision-making, IP ownership and licensing arrangements, and letters of commitment from each consortium member.

Detailed Budget with Justification (10-15 pages): Provide line-item budget by work package and year, co-funding commitments from each partner with documentation, cost assumptions and basis of estimates, contingency allocation and justification, and budget narrative explaining major cost drivers.

Workforce and Just Transition Plan: Describe current workforce skills and roles, training needs and programs for new technologies, partnerships with educational/training institutions, safety training and certification requirements, and plans for workers whose roles might be eliminated.

Circular Economy Integration: Explain material and energy flow analysis, by-product utilization strategies, waste reduction approaches, and circular economy benefits beyond the demonstrator itself.

Data Management and Dissemination Plan: Detail what technical and economic data will be collected, monitoring and verification approaches, data quality assurance procedures, public dissemination commitments, and IP protection for proprietary information.

Environmental Assessment: Include baseline emissions calculation, projected emissions reductions, lifecycle analysis where relevant, other environmental impacts (water, waste, etc.), and required permits and regulatory approvals.

Letters of Support: Obtain letters from consortium members committing specific resources, potential customers or off-takers for products, relevant government agencies or regional development organizations, and independent experts endorsing technical approach.

What Makes Applications Stand Out

Based on analysis of funded projects, here’s what evaluators prioritize:

Technical Credibility and Innovation (35% of evaluation): Is the technology genuinely novel and breakthrough, not incremental? Is the technical approach sound and well-justified? Are performance claims backed by credible data or modeling? Does the consortium have expertise to actually execute? Is the technology readiness appropriate for industrial demonstration? Reviewers can tell the difference between genuine innovation and hype.

Climate Impact and Replicability (30% of evaluation): How much CO2 will the demonstration eliminate? What’s the potential for this technology to be deployed widely in Sweden and beyond? Is the climate impact calculation rigorous and conservative? Can other companies in the sector adopt this if it proves successful? Projects with large-scale replication potential score highest.

Industrial Commitment and Commercial Pathway (20% of evaluation): How committed are industrial partners financially and strategically? Is there a clear pathway from successful demonstration to commercial deployment? Have potential customers been identified? Are go/no-go decision criteria defined? The Agency doesn’t want to fund demonstrations that just produce reports - they want to catalyze actual industrial transformation.

Workforce and Circular Economy Integration (10% of evaluation): How thoughtfully does the project address workforce transition? Are training programs real with institutional partners, or just aspirational? How well is circular economy integrated into process design? These aren’t afterthoughts - they’re genuine evaluation criteria.

Project Management and Risk Mitigation (5% of evaluation): Is the consortium well-structured with clear governance? Is the timeline realistic? Are risks identified and mitigated appropriately? Does the budget make sense? Strong project management doesn’t guarantee funding, but weak project management can sink an otherwise good application.

Common Mistakes to Avoid

Applying with Single Companies Instead of Consortia: The Agency strongly prefers collaborative consortia. Single-company applications are rarely funded unless the company can demonstrate exceptional circumstances or has assembled a compelling advisory board that provides similar collaborative benefits.

Vague or Inflated CO2 Reduction Claims: Don’t just assert that your technology will reduce emissions by 90% - show the detailed calculations, assumptions, and evidence. Reviewers are technically sophisticated and can spot unrealistic claims. Conservative, well-justified projections are far more credible than aggressive ones with thin justification.

Technology That’s Too Early or Too Late: If you’re still proving basic scientific feasibility, you’re too early for this demonstrator program (though you might fit other Swedish Energy Agency programs focused on earlier-stage research). If your technology is already commercially proven and you’re just doing a standard deployment, you’re too late. The sweet spot is technology that’s proven at pilot scale and ready for industrial validation.

Insufficient Co-Funding Commitment: If you’re asking for kr150 million but industrial partners are only committing kr20 million, reviewers will question whether the industrial partners really believe in the technology. Substantial co-funding (40-50% of total costs) from industrial partners signals genuine commitment.

Ignoring Workforce or Circular Economy: Since these are explicit evaluation criteria, applications that give them token treatment score poorly. If you genuinely haven’t thought about workforce implications or circular economy opportunities, you probably haven’t developed your project concept fully enough to apply.

Unrealistic Timelines or Budgets: Reviewers have seen many industrial demonstration projects. They know how long permitting takes, how long equipment procurement and construction take, and typical cost ranges. Timelines showing full construction and operation in 18 months, or budgets that are dramatically below comparable projects, raise red flags about planning quality.

No Clear Pathway to Deployment: If your answer to “what happens if the demonstration succeeds?” is vague or uncertain, that’s a problem. The Agency wants to fund projects that lead to actual decarbonization, not just interesting research. Show that industrial partners are prepared to deploy the technology commercially if performance and cost targets are met.

Frequently Asked Questions

Can companies outside Sweden participate? Foreign companies can be consortium members (as technology suppliers, engineering partners, etc.), but the demonstration must be in Sweden and the consortium lead must be Swedish. The project should primarily benefit Swedish industrial decarbonization.

What counts as “breakthrough” technology? Generally, technologies that enable 50%+ emissions reductions in industrial processes, rely on fundamentally different approaches than current practice, or integrate multiple innovations in novel ways. Incremental efficiency improvements typically don’t qualify.

Is there a minimum or maximum project size? No formal minimum, but projects below kr200 million total cost (kr100 million grant) are rarely competitive - they’re often too small to demonstrate at genuinely industrial scale. No maximum, though grants above kr150 million are rare and require exceptional strategic importance.

How is IP handled? Background IP (what consortium members bring) remains with those members. Foreground IP (developed during the project) typically belongs to consortium members who created it, with provisions for other members to access it for their own operations. The grant agreement will specify IP terms.

What reporting is required? Expect quarterly progress reports, annual detailed technical reports, financial audits, and ultimately a comprehensive final report with technical and economic performance data. You’re also expected to participate in dissemination activities like conferences or workshops to share learnings.

Can we apply for multiple demonstrations? Each application should be for a distinct demonstration. If you have ideas for multiple different technology demonstrations, they should be separate applications. Don’t combine unrelated demonstrations in a single proposal.

What happens if the demonstration doesn’t achieve target performance? The grant agreement will define milestones. If you’re making good-faith efforts but encountering technical challenges, the Agency will typically work with you to adapt plans. But if you’re consistently missing milestones or not making progress, funding can be reduced or terminated. The key is transparency about challenges and genuine effort to solve them.

Can we get support for a demonstration we’re already planning? Yes, if you haven’t yet committed to construction. The Agency can’t retroactively fund work already completed, but they can support demonstrations in the planning phase that you’d do anyway. The key question is whether the grant enables something that wouldn’t otherwise happen, or happens much faster.

How to Apply

Ready to pursue this funding? Here’s your roadmap.

First, assess whether your technology and consortium are ready. You should have pilot-scale data or credible modeling showing technical feasibility, industrial partners willing to commit substantial co-funding, a site in Sweden where the demonstration can be integrated, and clarity on IP ownership. If any of these elements are missing, address them before investing in a full application.

Second, schedule a pre-application consultation with the Swedish Energy Agency. Their staff can give you invaluable feedback on whether your project aligns with program priorities and what would strengthen your application. These consultations are offered specifically to help potential applicants - use them.

Third, form your consortium formally. Beyond informal collaboration, you need signed agreements or memoranda of understanding that clarify each member’s roles, contributions, IP arrangements, and governance. Applications from consortia with clear formal structures are much stronger than those from loosely affiliated groups.

Fourth, develop your technical approach in detail. This means process flow diagrams, mass and energy balances, equipment specifications, integration plans, monitoring approaches, and performance targets. The level of detail should be sufficient that an independent engineer could assess feasibility. Generic descriptions won’t suffice.

Fifth, quantify your CO2 reductions rigorously. Calculate baseline emissions for the current process, project emissions with the new technology (including lifecycle emissions for any new energy inputs), and estimate potential emissions reductions if the technology were deployed widely. Show your assumptions and calculations transparently.

Sixth, develop your workforce and circular economy plans thoughtfully. Don’t treat these as boxes to check. If you need to upskill 50 workers on hydrogen systems, identify training providers, estimate training time and costs, and explain how you’ll ensure safety. If your process generates a novel by-product, explain what it is, how much you’ll produce, and who might use it.

Visit the Swedish Energy Agency website to access the complete application guidelines, online portal, and contact information for pre-application consultations: https://www.energimyndigheten.se/en/

Start your application preparation at least 10-12 weeks before the September 26, 2025 deadline. Complex consortium applications with detailed technical content cannot be rushed. Applications submitted in the final week tend to have notably lower quality and success rates.

For questions about eligibility, program priorities, or application procedures, contact the Swedish Energy Agency’s industrial programs team through their website. They’re responsive to serious inquiries from potential applicants.

Consider participating in any information webinars the Agency might host before the deadline. These sessions provide insights into evaluation criteria and common mistakes, and offer opportunities to ask questions about your specific situation.