20 April 2022

Denmark’s new reform proposal: “Denmark can do more - II”

On 19 April, the Danish Government presented its reform proposal Danmark kan mere II. The new reform includes phasing out natural gas, increasing the production of green gas production, increasing the production of green electricity and making Denmark a net exporter of green energy by 2030, introducing a green tax reform with a CO2 tax and lastly, pushing out Denmark’s green solutions in Europe. Dan Jørgensen, the Minister of Climate, Energy and Supply said "The climate fight has never been more important, and we want to supply Europe with green energy and displace Russian gas. That is why we are proposing to quadruple the production of renewable energy on land, and we are preparing for more energy islands. At the same time, homeowners with black light must switch to district heating or green heat pumps,”

Stakeholders have had varying reactions to the announcement. The Danish PtX industry praises the new climate and energy initiative, especially the initiatives to multiply renewable energy production and utilise the entire Danish sea potential. The positive outlook is shared by Dansk Industri, but emphasises that it lacks focus on energy efficiency, and that plans must be followed up with actions. European Energy follows along the same lines and praises the new plan, but points to the fact that the Government must ensure sufficient network capacity if their plan is to succeed. Green Power Denmark agrees and states that it is an ambitious plan, but in order for it to become reality, Denmark must strengthen its electricity grid. F&P welcomes the proposal of expanding green energy, but argues that the plan requires concrete investments. However, SYNERGI is critical of the new plan, and claims that Denmark will not be able to get rid of Russian gas unless it also starts to focus on energy-saving initiatives in order to reduce Danish energy consumption. 

Press release, Brintbranchen, EnergiWatch, Borsen, Press release, Press release

Minesto launches plan for tidal power expansion on the Faroe Islands

The leading technology developer in marine energy, Minesto, has launched a detailed plan for large-scale expansion of tidal parks on the Faroe Islands. The plan includes 4 new verified sites, each with 20-40 MW installed capacity. With a total capacity of 120 MW and an estimated annual production of 350 GWh, the parks will meet 40% of the Faroe Islands’ electricity consumption and enable the Islands to reach its political goal of 100% renewable energy by 2030. The first stage of construction will take place in 2022. 

Press release

Analysts expect record-high Norwegian electricity prices in the summer

Analysts now fear that 2022 will contribute with record-high electricity prices during the summer months due to the war in Ukraine and overall high prices for coal and gas. On 19 April, the most expensive single hour was recorded, with an electricity price of NOK 2.73 per kWh excluding grid rent and fees. “It is set up to be the highest one has ever seen. A price between NOK 1.5 and NOK 2.0 per kWh is expected in southern Norway this summer, without taxes”, said price analyst Tor Reier Lilleholt. 

Nordre

Norway sold gas for NOK 112 billion in March

March 2022 presented a record month for the Norwegian export of natural gas. In total, Norway exported gas for NOK 112.4 billion, a more than sixfold increase from March 2021. At the same time, figures show that the export value of crude oil almost doubled, to a record-high of NOK 51.6 billion. Exports ended at a total of NOK 226.3 billion in March, almost 25% more than at the previous peak in 2021, and resulting in a historically high trade surplus of NOK 138.4 billion. 

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Nel ASA holds official opening of Herøya facility

The leading electrolyser company has officially launched Herøya, the world’s first fully automated electrolyser production facility with a production capacity of 500 MW. With further investments, the production capacity could increase to 2 GW. Nel has invited both customers and partners for the grand opening of the new factory, and the Norwegian Minister of Energy and Petroleum will give the official opening speech.

Press release

SENS enters into cooperation with Catena

SENS is set to develop a solution in the form of a circular cooling and heating system for Catena’s projects in Årsta and Linköping. The waste heat that arises from cooling grocery stores is recycled and seasonally stored in a thermal geolayer, which is then used during cold seasons to heat the premises via heat pumps. The project in Linköping also includes the construction of a parking space on the grounds above the heat storage, which will be prepared for charging infrastructure for both heavy traffic and cars. The projects are expected to be completed during 2Q22 and have a total value of approximately SEK 28 million.

Press release

What we’re reading

• Energy chiefs warn of ‘truly horrific’ autumn for British households (Financial Times)
• Investors wary of Australia’s green hydrogen hype (Financial Times)

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