18 April 2023
Today's Top Nordic Green News:
- Northvolt may choose US over Europe for next megafactory
- Freja Offshore applies for 2.5 GW floating wind farm in Sweden
- Vattenfall plans to build new hydropower plants in Sweden with a total capacity of 720 MW
Northvolt may choose US over Europe for next megafactory
Thousands of jobs and billions in investments now are at risk as the Swedish battery producer Northvolt is considering whether to build its next factory in the US, rather than in Heide in northern Germany. The tug of war about the best state subsidies is now said to be on - and Europe is described as slipping behind developments. President Biden signing the US Inflation Reduction Act (IRA) into American law, in August 2022, fundamentally changed the competitive landscape for companies like Northvolt, says Stefan Mohrdieck of the German region which was getting ready to receive the planned Northvolt factory. The IRA programme is meant to promote investments in green technology and energy with the help of USD 370 billion in tax support - but only if it happens at least largely in the US itself. Northvolt CEO Peter Carlsson said last October that IRA subsidies would lower battery production costs by 30-40%. Then Carlsson in February said in an interview with Bloomberg that the US programme meant that Europe was losing momentum. The EU countermeasure, the Net Zero Industrial Act, softened the previously so rigid subsidy regulations with the goal to produce 40% of its green tech needs, including batteries, in the EU by 2030. Germany still hopes Northvolt will open up production there and Northolt is now carefully following European energy policy development before making its strategic decision of where to locate its next production site after Skellefteå.
Freja Offshore applies for 2.5 GW floating wind farm in Sweden
Swedish-Norwegian company Freja Offshore, jointly owned by Hexicon and Mainstream Renewable Power, has submitted a permit application for a 2.5 GW floating wind farm named Mareld on the west coast of Sweden. The project has the potential to provide 9-12 TWh of energy per year, equivalent to over half of the entire Västra Götaland region's electricity consumption. The application is an important step towards the region's transition to locally produced sustainable energy and reducing its dependence on imported electricity. The Swedish government will now prepare the application and collect opinions from various authorities in a referral round.
Vattenfall plans to build new hydropower plants in Sweden with a total capacity of 720 MW
Vattenfall plans to build new hydropower plants at four existing locations in Sweden, which can add a total capacity of 720 MW, almost as much as the Harsprånget, Vattenfall's largest hydropower station. Feasibility studies are underway to prepare for future investment decisions, with plans to build starting from 2026 and into the 2030s. These new plants will help meet the increasing demand for fossil-free electricity. Hydropower has a key role in balancing the electricity system due to its flexibility in producing fossil-free electricity when there is less wind and storing energy in water reservoirs when other types of energy are produced.
Fingrid modernises grid and electricity system to support renewable energy growth in Finland
Fingrid, a Finnish power grid company, is modernising the main grid and electricity system to keep up with the changing electricity production and consumption needs brought about by strong growth in renewable energy. Fingrid is working with industry players to promote Finland's competitiveness, including introducing new solutions for power, voltage and frequency management and energy storage. The regional concentration of wind power production challenges the adequacy of the main grid, so Fingrid is strengthening the regional grid and implementing quick solutions to support the electricity system. Wind power operators can also help by joining the reserve market, which supports both the electricity system and creates new earning opportunities. The common goal is to promote Finland's competitiveness and bring new investments in clean electricity and industries that use it.
OX2 acquires 475 MW solar power project in Finland
OX2 has acquired the project rights to a 475 MW solar power project in Huittinen, Finland, from SAJM Holding. The solar park is in a development phase, with environmental impact statements and permit applications expected to be submitted in 2023. OX2 is also developing two other solar parks in Finland, Kauhajoki and Loimaa, and has a total project development portfolio of 4 GW of solar power as of the end of 2022.
Plexigrid raises SEK 45 million in funding to improve efficiency of electricity grid
Spanish-Swedish software company Plexigrid has raised SEK 45 million in its second funding round, backed by Polar Structure, Vargas Holding and The Venture City. The software developed by Plexigrid creates a digital copy of an electricity grid that can reduce its costs by between 35% and 40%. The platform aims to make existing grid infrastructure more efficient and thus, enable more people to connect to it. The investment will help the company streamline electricity grids at the distribution level, increasing their utilisation rate and capacity, and free up capacity by integrating more renewable energy, charging infrastructure, heat pumps and energy storage.
Deutsche Bahn to purchase 13,000 tonnes of renewable diesel from Neste to reduce greenhouse gas emissions
Deutsche Bahn, the German National Railway, is set to increase its use of renewable diesel in 2023 by purchasing around 13,300 tonnes (17 million litres) produced by Finnish Neste. By switching to Neste MY Renewable Diesel, Deutsche Bahn can reduce greenhouse gas emissions from its diesel-powered locomotives and railcars by up to 90%. In total, the amount of fuel that Deutsche Bahn has purchased will save around 46,000 tonnes of greenhouse gases compared to if the company had used fossil diesel. Neste MY Renewable Diesel is made from 100% renewable raw materials such as used cooking oil.
What we’re reading
- EU Parliament backs overhaul of Europe's biggest climate policy (Reuters)
- UK heads global renewables FDI league table (FDI Intelligence)
- ‘Transformational change’: Biden’s industrial plan triggers wave of investment pledges (FDI Intelligence)
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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