2 November 2022
Controversial energy bridge from Sweden to Germany postponed
A controversial multi-billion project to connect Sweden and Germany by electricity cables to share power has been postponed. However, while the procurement of Hansa Powerbridge may have been interrupted, Svenska Kraftnät is still aiming at realising the large project. This despite signals from the new Government that it should be paused. Svenska Kraftnät, which is responsible for Sweden’s grid, has been planning the project for several years together with the German firm 50Hertz to connect Skåne with northern Germany to enable energy trade between the two countries. However, because of the present electricity challenges and quick tech development, both firms have agreed to delay the project until later.
Copenhagen Mayor doesn't want Sweden to build nuclear power plant in Barsebäck
The owners of Barsebäck want to invest in a new energy park based on nuclear energy, however, the Mayor of Copenhagen, Sophie Hæstorp Andersen (S), does not want for the Barsebäck owners to proceed with their plans. According to Hæstorp Andersen, the municipality of Copenhagen will try to influence the Swedish Government to say no to more nuclear power in Sweden. She thinks the location for the new nuclear power plant is badly chosen due to the more than 4 million people currently living in the Øresund region. Instead, she wants Europe to work together to develop more renewable energy in the form of solar, wind and hydropower.
Soltech Energy acquires remaining 20% of Takrekond and Advanced Soltech publishes 3Q22 report
On 28 October, Soltech Energy Sweden AB acquired 20% of the shares of the subsidiary Takrekond i Småland AB. Takrekond employs about 20 people and expects to have a turnover of approximately SEK 30 million in 2022 with a good profit margin. The acquisition was financed entirely with its own cash and newly issued Soltech shares. At the same time Advanced Soltech, founded by SolTech Energy Sweden AB and Advanced Solar Power Hanging Inc. published its 3Q22 report and its share price rose by 8%. During the quarter, revenues increased by 54% compared to the previous year, reaching SEK 73 million. Adjusted for currency effects, the growth rate was 34%. Operating profit was SEK 41 million and cash flow was SEK 30 million. The company has several bonds outstanding, all of which mature in 2023. In the CEO's speech, Max Metelius noted that financing will be the most important issue to be addressed in the coming quarters.
Finnish municipality Kristinestad's hydrogen plant is on track
Wind power company CPC Finland and asset management firm Prime Capital plan to build a 200 MW green hydrogen and e-methane production facility in the Finnish city and municipality Kristinestad. The old power plant area Björnön in Kristinestad meets all the criteria required for large-scale production of hydrogen and e-methane. Because there is good access to the grid and the area is already in industrial use, this means that planning should go more smoothly. The permitting process is currently underway, and construction of the facility will begin in the second half of 2024, according to CPC Finland’s CEO Erik Trast. He further noted that there is not enough e-LNG on the market at the moment, and they already have buyers for all the products they will produce. The fuel produced in Kristinestad will be sold mainly to the German market.
SSAB sets up competition between Swedish and Finnish locations for first steel mill
SSAB is committed to rebuilding the Swedish Luleå and Finnish Brahestad steel plants in order to achieve fossil-free steel production by 2030, a project that will cost around EUR 4.5 billion. The SSAB CEO Martin Lindqvist stressed that rebuilding either Brachstad or Luleå is not a problem, but that access to fossil-free electricity and the speed of the authorities' processes are important. According to Lindqvist, the Finnish Government and local authorities are interested in rebuilding the Brahestad steel mill and there is a positive framework to make the process faster in Finland than in Sweden. But SSAB will only make a final decision on which steel plant to rebuild first once all the components are in place. Planning for Luleå and Brahestad is currently taking place simultaneously. By 2024 at the latest, SSAB must make a final investment decision. Meanwhile, SSAB reported the company's best third quarter ever in the 3Q22 report, with an operating profit amounting to SEK 6.7 billion, or approximately EUR 616 million.
Statnett announces NOK 60-100 billion investment by 2030
Statnett plans to invest NOK 60-100 billion to strengthen Norway’s central grid by 2030, while asking the authorities to take action to reduce processing times for new projects. Requests for grid connections from Statnett and regional grid companies have grown significantly in recent years, and the transmission grid is already at nearly full capacity. The development of the grid will help increase value creation in coastal areas and high power consumption areas, reduce price differences between price areas and streamline supply around large cities. In addition, all large transportation corridors are being upgraded to 420 kV voltage levels to increase capacity between different regions.
TECO 2030 signs letter of intent with AVL
TECO 2030 has signed a Letter of Intent with AVL on behalf of an undisclosed truck customer for the delivery of 120 fuel cell packs to 30 trucks based on the AVL HyTruck platform. Deliveries of these stacks are intended to start in the fourth quarter of 2023, and AVL is already preparing a formal request for the possible supply of the respective TECO 2030 fuel cell stacks in batches.
Vestas lowers outlook as third quarter lags forecasts
Vestas on Wednesday reported a larger-than-expected operating loss in the third quarter report and thus lowered its full-year outlook due to continued cost increases and supply chain instability. Vestas lowered its 2022 profit margin forecast to minus 5% from between minus 5% and 0%, and lowered its full-year revenue forecast to EUR 14.5-15.5 billion from a previous forecast of EUR 14.5-16 billion. Vestas reported total onshore and offshore purchase orders of 1,895 MW for the quarter, below the company's consensus average estimate of 2,482 MW. Vestas continues to raise its average selling price, but CEO Henrik Andersen said geopolitical uncertainty and high inflation have affected execution costs and activity levels in the wind industry.
What we're reading
- Energy crisis chips away at Europe's industrial might (Reuters)
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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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