19 October 2022
H2 Green Steel secures SEK 2.8 billion financing to build world's first large-scale green steel mill
With this round of investment, led by AMF, GIC and Schaeffler, and previous investor Altor, H2 Green Steel has reached SEK 2.8 billion in the final round of funding. In addition to the investments previously announced by Hitachi Energy and Kobe Steel, the final round brought in new investor Kinnevik and a climate-focused institutional investment fund. Proceeds from the B round will be used primarily to develop the company's large green steel plant in Boden, where H2 Green Steel will produce steel with 95% lower CO2 emissions compared to conventional steel production. In addition to the financing, H2 Green Steel has rapidly achieved several milestones, including the granting of planning permission for operations in Boden, and subsequently the construction of the steel mill continues to progress. The company has already pre-sold approximately 60% of its first production to several European customers in various sectors.
Swedish energy industry demands “more technology neutrality” from Kristersson government
It is important to have equal and long-term rules of the game for all types of energy. That is the main demand from the industry organisations for solar and wind power from the new Government. Abolished energy tax and faster permit processes are also requested. Nuclear power has been a major focus area for the new Government. Among other things, SEK 400 billion in government credit guarantees will improve the conditions for investments in the power sector, according to the right-wing parties' agreement. But that measure is not enough to cover the energy needs in the near term, says Daniel Badman, CEO of Swedish Wind Energy. The industry organisation also expresses disappointment at the announced proposal that offshore wind power projects should bear the cost of grid connections themselves. "We want to see more technology neutrality and predictability. There has been a great willingness to invest with the conditions that have been in existence," said Daniel Badman. Swedish Wind Energy is calling for a long-term energy agreement between the Riksdag parties to reduce unpredictability. Another wish is that the Government fulfils its promises about faster permit processes.
Furthermore, Fortum waded into the debate about nuclear power, which the Tidö Agreement calls to be fast-tracked. Fortum said that building new nuclear power is expensive and time-consuming and therefore guarantees are required, according to the energy giant Fortum. “You cannot invest in nuclear power if the policy changes every four years,” stated Communications Manager Per-Oscar Hedman. These views were echoed by Cecilia Hermansson, Chair of the Government’s Climate Policy Council, who criticised the new Government's focus on nuclear power instead of wind power.
Sweden’s Ministry of the Environment scrapped
Ulf Kristersson’s new Government has sparked an outcry after scrapping the Ministry of Environment in a move the opposition has branded as “devastating.” The Ministry was previously a stand-alone department with a minister in the cabinet, but now it will operate as part of another ministry instead which has combined climate with business. The new Minister for Climate and the Environment, 26-year-old Romina Pourmokhtari (L) will work under the lead of the Minister for Energy, Business and Industry, Ebba Busch (KD), who will become Head of the new Ministry. The Spokesperson for the Green Party, Per Bolund (MP), is highly critical of the decision. “For the first time in fifty years, there is no Ministry of Environment in Sweden. It is not possible to get a clearer description of how low this Government values climate and the environment. It is a historic decision that will have devastating consequences for environmental issues,” said Bolund in an interview.
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OX2's CEO: "Sees no threat whatsoever"
The new Government's energy policy is no threat to the wind and solar power company OX2, according to CEO Paul Stormoen. OX2’s share price has fallen 12% mainly in response to news emerging from the Tïdö Agreement that the new Government may scrap further offshore wind production. Stormoen however is robust, "I don't see any threat or negative impact whatsoever. The reason is that we started the planning for offshore wind projects long before the proposal that Svenska kraftnät would expand the main grid offshore. And our projects are based on them being implemented without any subsidies or support for land connections, for example [...] I'm not worried. An important message from the Government is that the policy must be technology neutral. It is very positive both for us as a company and for Sweden," said Stormoen, and concluded "Wind and solar energy are the cheapest and fastest to build, and we look forward to being a major player in contributing to Sweden's electrification."
First photo of Nord Stream pipeline shows almost completely torn gas line
An underwater camera has captured the first images of the explosion of the Nord Stream pipeline. The pictures show that one of the gas pipelines was almost completely torn up. Cracks also appeared in the seabed around the pipeline. At least 50 metres of the gas pipeline appears to be missing after the explosion and the footage also shows large pieces of steel from the pipeline lying on the seabed. The Copenhagen police, the Danish Ministry of Defence and PET confirmed on 18 October that the damage to Nord Stream 1 and 2 was caused by the explosion. According to the Swedish Security Police (SÄPO), these investigations have strengthened the suspicion of serious sabotage of the Nord Stream pipeline in the Swedish and Danish economic zones.
Swedish climate technology company Samster introduces a drying method based on solar and heat pump technology
Samster and its Founder, Kent Samuelsson, have presented their new patent-pending method of drying food and grains. The new method is made up of a process that is completely fossil-free and solar-powered. The process produces hot air for drying, which makes drying grains and food gentle and significantly reduces drying times. The drying method generates both heat and cold, with the only residual product of the process being water, and is based on electricity and heat obtained from solar hybrids and heat pumps.
Bixia and EnergiEngagemang offer joint solar cell solutions for companies, housing cooperatives and farmers
Last year's high electricity prices meant that more and more companies, housing cooperatives and farmers wanted to produce their own electricity. Energy company Bixia has long worked closely with many of Sweden’s farmers, who typically produce their own electricity through wind turbines and then sell the surplus to the company. Over 60% of the electricity sold by Bixia comes from these local producers. To meet the high demand, Bixia has now signed an agreement with the solar cell company EnergiEngagemang. Together, they now offer a solution where customers can receive help with all aspects of an electricity contract, from installation to securing future electricity costs.
Hydrogen pipelines are an emerging infrastructure
A preliminary study of a hydrogen pipeline for transporting hydrogen over long distances from the Finnish border and northern Sweden has been completed. The feasibility study was carried out by Luleå University of Technology and RISE in 2022 in cooperation with 24 participants interested in hydrogen in northern Sweden and partly financed by Vinnova. The results suggest that hydrogen pipelines may be needed as a complement to electricity pipelines to meet the large hydrogen and energy needs of industry in northern Sweden. A new type of infrastructure is emerging that requires more appropriate ownership and governance regulations. To reduce investment uncertainty and facilitate development, the preliminary survey recommends a more thorough investigation and development of legislation around hydrogen systems and that Sweden develops a national hydrogen strategy based on the Energy Agency's proposal.
Twelve electricity proposals gain majority in Norwegian Parliament
The Norwegian Parliament will give its consent to 12 of the 94 different electricity proposals of the opposition parties. Amongst other things, the Parliament has asked the Norwegian Government to consider exempting small solar power plants from the obligation to apply under the Planning and Building Act, either temporarily or for a limited period of time. In addition, there is now a majority in Parliament asking the Government to consider strengthening Husbanken's work on energy measures for low-income households. The proposal says that this could be achieved by creating a temporary loan scheme that could be used to install heat pumps, re-insulate buildings and other related one-off use measures.
Ørsted signs power purchase agreement with US Walmart Gigaton programme
Walmart and five of Ørsted's corporate suppliers have signed a group power purchase agreement. The five Walmart-like supply chain suppliers will purchase wind energy from Sunflower Wind in Marion County, Kansas. The purchase is expected to generate approximately 250,000 MWh of new renewable energy annually over the 12-year term of the agreement.
European Energy places order with Enercon for repowering
European Energy has placed an order for 10 turbines from Enercon in Germany with the aim of increasing the capacity of a 23-year-old onshore wind farm in Saxony-Anhalt. This is a repowering order and Enercon will replace the existing 16 turbines. The onshore wind farm is scheduled to be in operation in 2023.
Up to 200 new wind turbines in front of offshore wind farms Pori and Merikarvia
Swedish company Eolus Vind is planning large-scale wind power projects in front of offshore wind farms Pori and Merikarvia. The EUR billion project in Finland would include two new offshore wind farms, Wellamo and Tuulia.
What we're reading
- Europe at risk of ‘much worse’ energy crisis next year, warns Qatar (Financial Times)
- Will the energy crisis crush European industry? (Financial Times)
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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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