2 December 2021

H2 Green Steel and Iberdrola to build fossil-free steel

H2 Green Steel has entered a partnership with Spain’s Iberdrola to produce sponge iron – the raw material used in fossil-free steel production. The fossil-free steel project rests on three legs.

1. Jointly build a 1 GW electrolysis facility for hydrogen production.
2. H2 Green Steel to build a facility in proximity to the electrolysis facility, for producing sponge iron.
3. Iberdrola will invest in new electrical capacity, sourced primarily from solar power, but also wind- and hydro power.

Additionally, H2 Green Steel is also exploring the opportunity of establishing a production facility in proximity to the sponge iron facility, with the possibility of producing 2.5-5 million tonnes of green steel annually. The total investment costs for the three sub-projects amount to EUR 2.3 billion and will be financed by the partners, loans, and EU-support. The partners are currently reviewing three places on the Iberian Peninsula for its project, and targeting 2025 or 2026 for the electrolysis facility to start producing hydrogen (Metal Supply).

Norway holds off on oil exploration in budget deal

Norway’s Støre-led government (Ap) has agreed on next year’s budget deal with the Socialist Left Party (SV) – agreeing also to the Socialist’s demand to hold off on oil and gas exploration licences in virgin or little-explored areas in 2022. However, the agreement does not include oil licences in heavily exploited areas which in recent years represented the majority of drilling operations for Norwegian gas- and oil companies. The decision is seen by experts as a symbolic decision, reflecting the pressure on Norway to curb its exported emissions (Reuters, Carbon Pulse).

The Knut and Alice Wallenberg Foundation invest SEK 3 billion in sustainable materials

The Knut and Alice Wallenberg Foundation has pledged circa SEK 3 billion in funding towards research on materials and sustainability. The funding will go to exploring improved technology for future energy systems, pollution control and renewable material derived from forestry products. The research will be conducted in collaboration with Swedish industries (SvD).

OX2 hands over two wind parks in Finland to Infracapital

OX2 has built and handed over two wind parks in Finland, comprising a total of 14 wind turbines, following a signed agreement in August 2019 between OX2 and Infracapital, a European investor. The two wind parks, Kröpuln and Storbacken, with a total capacity of 60 MW and an annual electricity production of circa 200 GWh annually, were finalised according to the time plan and marks Infracapital’s second investment in Finland. Although the OX2 has delivered turnkey wind parks, it will be responsible for technical- and commercial operations. Both wind parks are expected to generate circa €320,000 annually in tax revenue to the municipalities Uusikaarlepyy and Vöyri (Tanalys).

EDF Renewables and Deep Wind Offshore form Norwegian offshore wind JV

EDF Renewables and Deep Wind Offshore have entered a 50:50 Joint Venture (JV) to bid, develop, construct, and operate offshore wind farms in Norway – starting with the development of two commercial-scale projects in Utsira Nord and Sorlige Nordsjo 2. (Renews)  

Fors Mill starts production of biobased material

The Fors Mill, a pilot facility presented by Stora Enso in August 2020, has started its production of biobased packaging foam made from wood. The packaging foam will be a part of its new product line for the use in cushioning and heat-isolating packages. As the produced foam is completely recyclable, the pilot facility contributes to Stora Enso’s climate targets according to Linda Stinessen Mill Director of Stora Enso Fors (Avesta Tidning).

Jacob Wallenberg: Sweden needs nuclear power

Jacob Wallenberg, Chairman of the Board of Investor, and the head of Sweden’s most powerful business dynasty says that Sweden needs to build new nuclear power plants to manage the electricity consumption and that he is willing to invest in new nuclear power – depending on the political conditions in Sweden. Large volumes of electricity are produced from wind power in the north of Sweden, while the demand is the highest in the south which the national grid is having difficulties supplying. Wallenberg claims that Sweden needs nuclear power in parallel with the aforementioned energy sources, as a dependable alternative. However, nuclear power is not viewed or discussed as a viable option on a political level which is making it increasingly difficult to invest in the energy source.If politics and businesses can agree on the future of nuclear power, Wallenberg states that he would be open to look at the opportunity of investing in nuclear power (svt ). 

What we’re reading

• Push toward hydrogen-based economy continues in Finland (Good News Finland)
• Price shocks risk “erasing” years of solar and wind cost reductions, and could delay projects (RenewEconomy)
• Morrisons to launch carbon neutral eggs in 2022 (AgriLand)
• US climate envoy Kerry says China, India, Russia must do more to tackle warming (Reuters)
• The use of renewable energy is accelerating - but still not quickly enough to offset the use of fossil fuels (The Economist)
• ExxonMobil declares new goals for carbon emissions per barrel (Financial Times)

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