12 May 2023

Today's Top Nordic Green News:

• German government backs Northvolt with billions in support for battery factory
• German-Danish project aims to establish hydrogen pipeline and offshore network connection
• OX2 sells 49% stake in Finnish offshore wind projects to Ingka Investments  

German government backs Northvolt with billions in support for battery factory 

The German government is set to provide substantial financial support, estimated at around  SEK 40 billion, to Northvolt for the establishment of their battery factory in northern Germany. The factory, expected to start production in 2026, aims to manufacture battery cells for approximately 1 million vehicles annually and create 3,000 jobs. The financing package, subject to approval by the European Commission, will likely consist of grants and loans. The chosen location, known as Northvolt Drei, offers a renewable energy-rich environment and access to skilled labour. Additionally, Northvolt plans to construct a recycling plant in Heide to supply the factory with recycled raw materials, with the goal of reaching 50% recycled content by 2030. Despite previously announcing plans for a battery factory in the US, Northvolt intends to proceed with both the German and North American ventures.

DagensNyheter

German-Danish project aims to establish hydrogen pipeline and offshore network connection

The H2 Interconnector Bornholm-Lubmin project, a collaboration between German and Danish partners, aims to create a cross-border hydrogen infrastructure by transporting hydrogen from the island of Bornholm to Lubmin starting in 2027. Gascade, the German transmission network operator from Kassel, is working with Danish transmission network operator Energinet and Copenhagen Infrastructure Partners (CIP) to develop the project. The planned 140 km hydrogen pipeline will have an import capacity of 10 GW, supporting the development of offshore wind energy in the Baltic Sea. 

In addition, Energinet and German counterpart Amprion are exploring the establishment of a hybrid connection between Denmark and Germany as part of an offshore network in the North Sea. This connection would enable the transport of surplus energy from the Danish energy island to German load centres, contributing to Europe's climate goals and increasing the integration of renewable energy into the energy system. Both projects are expected to enhance security of supply and promote the utilisation of the vast wind power potential in the North Sea.

DagensNäringsliv, EnergiWatch, Press Release

OX2 sells 49% stake in Finnish offshore wind projects to Ingka Investments

OX2, a renewable energy company, has reached an agreement with Ingka Investments to sell a 49% stake in its three offshore wind power projects in Finland. These projects have a combined potential capacity of 6,000 MW and are expected to generate approximately 29 TWh of electricity, meeting a significant portion of Finland's energy needs. The deal is estimated to positively impact OX2's operating profit by around SEK 300 million in 2023. The collaboration aligns with Ingka Investments' goal to expand renewable energy investments and reduce its carbon footprint. The transaction is subject to regulatory approval and is anticipated to be completed within two months.

Placera

Finnish Energy Industry Association: Electricity crisis resolved, focus shifts to transition challenges

According to the Finnish Energy Industry Association, the electricity crisis in Europe during the winter has been effectively managed, and there is unlikely to be a new crisis this year. While electricity prices may not return to pre-crisis levels, the situation has improved due to factors such as a mild winter, finding alternatives to Russian fossil gas and increased energy-saving efforts by the Finnish population. With the start of commercial production from the third reactor in Olkiluoto and the rapid growth of wind power in Finland, it is expected that electricity prices will not rise to the same levels as before. However, the CEO of the Energy Industry Association highlights the need for additional heat sources, particularly in terms of being able to produce heat from fuels like peat, coal and fossil gas during high-demand periods. 

EnergiNyheter

Ecoclime Group and SBAB collaborate to offer energy-saving solutions and financing

Swedish Ecoclime Group and SBAB have entered into a marketing agreement to collaborate on providing energy-saving and financing solutions, primarily targeting customers in the BRF real estate segment. Ecoclime Group, through its subsidiaries and partners, currently serves 5,000 customers who will have the opportunity to benefit from this partnership. Ecoclime Group specialises in cloud-based automation, circular energy, ventilation and electrical technology. 

Placera

What we’re reading

• EU will miss its ‘green’ hydrogen targets, executives say (Financial Times)
• Germany sets stage for G7 clash with push to endorse gas (Financial Times)
• BNP Paribas to stop funding new gas projects as litigation risk mounts (Financial Times)
• BNP Paribas to stop funding new gas projects as litigation risk mounts (Financial Times)

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