Gothenburg-based ClimateTech company Plagazi has officially secured a €29.5 million grant from the EU Innovation Fund for its flagship project, Gävle Circular Park (GCP), which aims to revolutionise hydrogen production through advanced waste gasification.
“The grant signature is very rewarding following a very collaborative grant preparation process with the European Climate Agency [CINEA]. This non-dilutive funding agreement will be a great asset to attract private funding now,” said Soran Shwan, CEO of Plagazi AB.
Founded in 2007, Plagazi is tackling an urgent challenges in the ClimateTech space: how to convert the mountain of non-recyclable waste into usable, clean energy. With its patented thermochemical recycling process and plasma gasification technology provided by InEnTec, the company will use its pilot plant in Gävle to transform waste into circular hydrogen and capture CO₂ in liquid form.
Plagazi’s Gävle project was chosen as one of only 85 funded initiatives from a pool of 337 applications.
The operation is designed to process 22,000 tons of waste annually, yielding up to 4,000 tons of sustainable hydrogen.
The pilot plant, scheduled to begin operations by 31 May 2028, is part of a broader initiative supporting the EU’s 2030 goal of a 55% reduction in greenhouse gas emissions and the long-term ambition of climate neutrality by 2050.
Plagazi’s system reportedly achieves a greenhouse gas avoidance rate of 206% compared to conventional hydrogen production from fossil fuels. It also uses approximately one-third less water and 80% less electricity than electrolysis-based renewable hydrogen, offering a competitive edge both economically and environmentally.
Moreover, the process generates valuable by-products including vitrified slag and metals, while eliminating toxic waste and permanently sequestering captured CO₂.
Plagazi also integrates community and regional economic benefits into its model. The pilot project is expected to generate over 20 jobs during its construction and early operation phases, with an additional 30 jobs anticipated as it scales to commercial production. Local suppliers will be prioritised, bolstering regional sustainable technology clusters and energy resilience. Surplus heat from the process will feed into the district heating network for localised energy circularity.
The financial close is projected for 31 May 2026, with plant operations commencing two years later.
The funding was originally announced in October 2024, but has now been formally allocated, positioning Plagazi as a serious player in Europe’s low-carbon hydrogen race.
“We are proud that the EU has now put us on the map among other low-carbon hydrogen projects in Europe and that there is growing recognition that technology openness is the right approach to promote a strong climate tech sector in Europe,” added Shwan.
Read the orginal article: https://www.eu-startups.com/2025/05/swedish-startup-plagazi-locks-in-e29-5-million-eu-grant-to-turn-waste-into-hydrogen/
