Hexicon's operations in Italy are carried out through the joint venture companies AvenHexicon and Avapa Energy SRL. AvenHexicon is currently developing five floating offshore wind farms in the Sicilian Channel and Hexicon has submitted applications for grid connection for five facilities. The 1,200 MW wind farm in the Sicilian Channel has already started a so-called "national offshore concession". It is estimated that offshore wind energy in the Sicilian Channel will help the Italian government to meet its target of increasing renewable energy production by 6 to 7 GW per year by 2030, replacing its demand for Russian gas. This clear signal from Italy that it wants to invest in renewable energy has prompted Hexicon to invest. In the near future, Hexicon will submit applications for permits for all projects in Italy in order to continue promoting sustainable energy development.
Reuters reports that Sweden overtook France as Europe's largest net power exporter in the first half of 2022, as deep-rooted problems reduced French nuclear power availability to historic lows. France usually exports more power than it imports, but structural problems with its nuclear power plants and problems associated with prolonged hot weather in France saw exports from the country halved compared to the previous year, while Sweden exported 16 TWh.
Ørsted said its net profit amounted to DKK 6 billion and the return on capital employed (ROCE) was 15%. The operating profit (EBITDA) for the first half of the year was DKK 13 billion, the same as the same period last year. EBITDA excluding new partners increased by 48% to DKK 11.4 billion.
Ørsted increased its EBITDA guidance excluding new partnership agreements by DKK 1 to 20-22 billion due to increased revenues from bioenergy and other and onshore businesses.
Ørsted also increased its total investment guidance by DKK 5 billion as a result of the acquisition of Ostwind in a deal estimated at EUR 689 million. Mads Nipper, President and CEO of the Ørsted Group, said it had been awarded the contract for Hornsea 3 in the UK, the world's largest offshore wind farm, and was on track to achieve its target of 30 GW of offshore wind by 2030. On the onshore side, it has also made significant progress with its entry into the Spanish onshore market and the acquisition of German and French onshore wind developer Ostwind. Overall, Ørsted sees the development of a growing renewable energy market in the first half of 2022.
Press Release, Maritime Danmark
Nel ASA reported revenues of NOK 183 million for the second quarter of 2022, up 12% from NOK 164 million for the same period in 2021. EBITDA was NOK 197 million, which has decreased compared to the same period last year. The deficit was due to increased personnel costs and raw material costs, as well as some delays in deliveries due to value chain challenges. Order intake for the second quarter was NOK 236 million, up 61% from the same period last year. At the end of the quarter, Nel reported its highest ever order backlog of NOK 1,439 million, an increase of 33% compared to 2Q21. After the quarter, Nel received a record purchase order for 200 MW of alkaline electrolysis equipment. At the same time, Nel decided to build a new fully automated production line in Herøya, Norway, doubling the capacity of its alkaline electrolyzer stacks to approximately 1 GW, and has received purchase orders for several H2Station™ units worth approximately EUR 8 million.
Håkon Volldal, CEO of Nel, said that the second quarter contract will have a significant positive impact on the company. It also shows that the green hydrogen market is moving in the right direction and that political support and practical incentives are emerging.
On the Oslo Stock Exchange, Nel was trading at NOK 15.4 per share on Thursday morning. Nel's share price was volatile, and ended the day down. Thomas Næss, an analyst at Sparebank 1 Markets, pointed out that Nel is often very volatile on the stock exchange and today's report confirms that the stock is significantly overpriced (Sparebank’s price target is 7).
Press Release, Press Release, DN
Finland's Neste has purchased the European rights to Alterra Energy's plastic waste liquefaction technology solution, which will further strengthen the company's work in developing chemical recycling methods. With this purchase, Neste says that it is able to offer a complete range of chemical recycling services from plastic waste to products and high quality raw materials that can be used to produce new polymers and chemicals. Neste has conducted a series of trials at the company's refinery in Finland to further develop the processing of liquid plastic waste from companies such as Alterra Energy. Neste also plans to set up a joint venture with Ravago in Vlissingen, the Netherlands, and use Alterra Energy's technology.
More than 90% of Norway's electricity demand is provided by hydroelectricity. This has led to a huge difference in electricity prices between northern and central Norway, which has almost half of the hydroelectric production, and southern Norway, which has all the export cables. On Wednesday, the cost of electricity in the three regions of southern Norway was between 263 €/MWh and 327 €/MWh, while the price in northern and central Norway is slightly more than 1 €/MWh. The main reason for the 160-fold difference in price is the lack of transmission capacity from north to south.
Norway’s oil and energy minister, Terje Aasland said that the government would give priority to filling the hydroelectric reservoirs and to the security of Norway's electricity supply. The government will decide on the exact mechanism next week, but the proposal is that exports will be restricted when reservoir levels are below the seasonal average. Some Norwegian politicians have suggested shutting down electricity exports until the energy crisis is over, but the authorities say this is not possible because although Norway is not a member of the EU, it is part of the European single energy market and has bilateral agreements covering cables.
The Nordic countries are some of the most dynamic and successful economies in the world. They are also leaders in sustainability, from renewable energy, biofuels, carbon capture and storage and the hydrogen economy, circular economy business models and battery development, the Nordics are pioneers in policy design, technology development and consumer uptake. Mundus Nordic Green News is covering this transition for the international community. Every day we curate the stories of most relevance to international businesspeople and policy experts from the flow of news. Mundus Nordic Green Indices summarise the meta-data from our daily coverage to enable easy tracking of trends. We supplement these with our own opinion pieces and commentary.