14 June 2023
Today's Top Nordic Green News:
- H&M CEO addresses recycling criticism
- Finland a net exporter of electricity in May
H&M CEO addresses recycling criticism
A review conducted by Aftonbladet on H&M's handling of recycled garments has sparked demands for new legislation from various political parties. The review exposed how H&M's clothes, which were promised to be recycled or reused in a sustainable manner, ended up being dumped in African countries, causing significant environmental and social consequences. The Green Party, Center Party and Left Party in Sweden are among those calling for producer responsibility, urging clothing manufacturers to take greater accountability for the entire lifecycle of their products. The demands include introducing laws that prohibit the unsustainable handling of overproduction, implementing recycling and reuse of garments and setting targets to reduce textile production volumes.
H&M CEO, Helena Helmersson, acknowledges it is "totally unacceptable" that customers' recycled clothing is being dumped or burned in impoverished nations. She sees it as a broader industry problem and emphasises that clothes should never end up as waste. Helmersson clarifies that H&M's own collected clothes are not subject to the criticised practice, finding the portrayed situation appalling and inconsistent with reality.
Finland a net exporter of electricity in May
Finland became a net exporter of electricity in May, a situation not seen in nearly 20 years. According to Finnish Energy (Fi. Energiateollisuus), Finland exported more electricity than it imported in May, for the first time since 2004, with Estonia being the largest recipient. The increase in electricity production and decrease in consumption have contributed to the surplus. Total electricity production in May 2023 grew by 15% compared to the same period last year, driven by significant growth in wind and nuclear power generation.
The low electricity consumption is attributed to various factors, including economic conditions, energy-saving measures, and favourable weather. Despite the current surplus, electricity prices may experience spikes in the coming winter due to potential scarcity. However, the overall outlook for the next winter is considered favourable and stable. Finland has now the cheapest electricity in the Nordic countries, but the situation is not likely to last forever.
Reduced emissions from district heating in Sweden
Energy companies in Sweden have released statistics on the reduced climate emissions from district heating in 2022. Emissions decreased by 0.22 million tonnes of CO2 equivalent compared to 2021, with the share of fossil fuels dropping from 2.1% to 1.9% in 2022. The decrease in demand for district heating in 2022, attributed to a warmer year, resulting in reduced deliveries. Additionally, electricity production in district heating cogeneration plants slightly decreased, resulting in a 6.3% reduction in emissions from electricity and gas production compared to 2021. The industry is focused on eliminating remaining fossil fuel usage through investments, collaborations for waste heat utilisation, heat storage, low-temperature networks, geothermal energy, solar heat and carbon dioxide separation and storage.
District heating in Sweden has played a significant role in achieving climate and environmental goals by replacing oil burning with biofuel-based district heating and using a high proportion of recycled (54%) and renewable (43%) fuels. Moreover, utilising significant amounts of waste heats makes district heating in Sweden highly resource efficient, which means minimal primary resources are used to provide heat to customers. A challenge that remains in the industry is reducing emission from energy recovery of residual waste, which accounts for 71% of emissions from district heating.
Vattenfall inaugurates South Kyle, its largest onshore wind farm in the UK
Vattenfall has inaugurated its largest onshore wind farm, South Kyle, in south-west Scotland. With an installed capacity of 240 MW, the wind farm will provide electricity to approximately 187,000 households. The project was developed and built by Vattenfall but will be owned by Greencoat UK Wind. The inauguration ceremony was attended by Vattenfall's CEO and representatives from Greencoat UK Wind. The wind farm will supply electricity to beverage manufacturer AG Barr under a power purchase agreement. Vattenfall is actively expanding its portfolio of onshore wind power projects and sees onshore wind as crucial for energy security, carbon reduction and local community development.
Revised national budget in Norway, affecting green initiatives
The governing parties and the SV party in Norway have reached an agreement on the revised national budget. The revised national budget includes a total increase in expenses amounting to NOK 2.1 billion, alongside budget cuts of NOK 560 million for the current year.
While there has been political disagreement on environmental policies, the government is pleased to reach an agreement on green matters. An allocation of NOK 300 million is earmarked for three distinct climate initiatives, with NOK 100 million allocated to each: voluntary forest protection, climate measures facilitated by Enova and climate tax. The largest reduction in spending originates from the suspension of the carbon capture plant project in Klemetsrud, Oslo, resulting in savings of NOK 300 million for the parties involved.
Sweden and Canada strengthen cooperation for forest-based innovations
Paper Province and Sting Bioeconomy, in collaboration with seven Swedish startup companies, are travelling to Toronto and Vancouver to explore collaborations and business opportunities in forest-based innovations, aiming to deepen the ongoing partnership between Sweden and Canada. The trip includes meetings with important stakeholders, potential partners and customers in Canada, providing a platform for networking and showcasing groundbreaking innovations from the forest. The focus is on creating collaborations that benefit companies in both countries and contribute to the growth of the bioeconomy.
Norwegian Research Council allocates NOK 300 million for 27 energy projects
The Research Council in Norway (No. Forskningsrådet) has approved NOK 300 million in funding for 27 projects focused on researching environmentally friendly energy. The projects cover various aspects, including renewable energy production, energy utilisation and the impact of the ongoing energy transition. A significant number of the projects will be led by young research talents. This funding aims to support the government's prioritised areas, such as hydrogen, solar energy, batteries and offshore wind. The projects will contribute to the adoption of new environmentally friendly energy sources and enhance society's ability to address energy transition challenges.
Cows will help Swedish pharmaceutical AstraZeneca reach climate goals
AstraZeneca has partnered with Vanguard Renewables to help achieve its climate goals of reducing greenhouse gas emissions at its production facilities in the US. The Swedish pharmaceutical giant is making a shift from natural gas to biogas, a more sustainable alternative, as part of its emission reduction strategy. Under the agreement, Vanguard Renewables will supply Astra Zeneca with biogas produced from cow manure and food waste. AstraZeneca's CEO, Pascal Soriot, emphasised the importance of taking responsible actions, even if they come at a slightly higher cost. He stated, "Doing the right thing costs a little more, but it is a worthwhile investment that pays off in the long run." The company aims to achieve a reduction of 98% in its greenhouse gas emissions from production by 2026, compared to the levels recorded in 2015.
Arla doubles fleet of biogas-powered trucks and aims for self-sufficiency
Arla has doubled its fleet of trucks running on biogas produced from cow manure. The conversion of cow manure into biogas helps close the cycle on dairy farms and provides a nutrient-rich organic fertiliser for farmers. Malin Leander, the director of logistics at Arla Sweden, says, manure from Arla’s farms can correspond to approximately 54 million litres of diesel, meaning that they could in theory become completely self-sufficient.
Arla aims to increase the number of farms with biogas production to 160 by 2030. The company is also exploring a partnership with Gasum to build large-scale facilities for liquid biogas production. Despite the positive environmental impact, Arla highlights the uncertainty surrounding government regulations and biogas taxation, urging the need for support in the food sector to reduce production costs.
Norwegian Hydrogen plans to build a large hydrogen plant in Sami municipality
Norwegian Hydrogen, based in Ålesund, is set to construct a 270 MW hydrogen plant in Ørskog, Sami municipality. The facility, employing approximately 50 people, aims to produce 40,000 tonnes of green hydrogen annually, reducing CO2 emissions by twenty percent in Møre and Romsdal. The hydrogen generated will not only meet local zero-emission requirements but also support significant export volumes to continental Europe, addressing the growing demand for clean energy solutions.
Green Hydrogen Systems announces rights issue
Green Hydrogen Systems, a Danish company, has announced a rights issue to raise capital. The rights issue involves offering up to 104,296,612 new shares at a subscription price of DKK 4.50 per share. Existing shareholders will be given pre-emptive rights to subscribe for the new shares. The gross proceeds from the offering are expected to be approximately DKK 469 million. The funds raised will be used to support the company's growth, including the development of its product platforms and expansion of its commercial activities. Certain major shareholders and key employees have already committed to subscribing for shares.
What we’re reading
- European gas jump shows fight for LNG supply is not over (Financial Times)
- US-led minerals partnership shortlists projects for green energy shift (Financial Times)
About Nordic Green News
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.
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