21 April 2023
Today's Top Nordic Green News:
- UK to join EU nations in pledge to scale up green energy in North Sea
- Swedish Energy Agency: Continued rapid expansion of wind power needed for energy transition
- Finnish nuclear power plant Olkiluoto 3 is expected to lower the price of electricity
- Denmark concerned about the security risks of offshore wind power
UK to join EU nations in pledge to scale up green energy in North Sea
The UK will join several EU nations in signing a declaration to accelerate the building of offshore wind projects, including "energy islands" in the North Sea. The aim is to reduce fossil fuel consumption and increase renewable energy production. Energy ministers from the countries involved, including Germany, France,and Belgium, will sign the declaration on 24 April. The UK aims to establish up to 50 GW of offshore wind capacity by 2030. Other areas of collaboration will focus on renewable hydrogen, carbon capture and storage and security.
Swedish Energy Agency: Continued rapid expansion of wind power needed for energy transition
According to new statistics from the Swedish Energy Agency, the expansion of wind power is still growing rapidly and is expected to continue until at least 2025. The agency forecasts that wind power production will reach 50 TWh by 2025, which is an increase of 26 percent compared to 2022. However, more and more wind power projects are being stopped by municipalities using their veto power, which could slow down the expansion rate after 2025.
The Energy Agency predicts a significant increase in the need for new electricity production in both the short and long term, and wind power is seen as playing an important role in the energy transition and electrification of society. Martin Johansson, the head of the energy system unit, suggests that onshore wind power is the type of power that can meet the requested addition in the short term, but a high rate of expansion is still needed.
The Energy Agency suggests that offshore wind power should be prioritised, as there is an intensive development of projects, but only a few have received permission to start. The agency states that energy needs to be prioritised over other interests for offshore wind power to expand. Additionally, it is crucial to have a dialogue on opportunities for coexistence in the sea.
Finnish nuclear power plant Olkiluoto 3 is expected to lower the price of electricity
The start-up of the Olkiluoto 3 nuclear reactor is expected to lower electricity prices in Finland in the coming months, according to Jukka Leskelä, the CEO of Energy Industry Association. However, Leskelä says that electricity prices may fluctuate more frequently and widely in the near future due to an increase in wind power production and intermittent supply. He also noted that interest in smaller nuclear power plants for industrial use is growing in Finland. Overall, he estimated that the supply of electricity will grow more in Finland than the demand during the coming years, leading to lower energy prices.
Denmark concerned about the security risks of offshore wind power
Denmark's Foreign Minister Lars Løkke Rasmussen has raised concerns about the risk of wind power sabotage, following reports of suspected Russian mapping trips at sea. He believes that wind farms and power lines now pose a security risk and that Russia is interested in the infrastructure of the Nordic countries. Denmark has decided to increase its defence budget to counter such risks.
Finland’s carbon sink declines, says new report
A new report by the Finnish Environment Institute (Syke) reveals that Finland's carbon sink in its forests is rapidly declining due to increased logging. The gap between emissions and carbon sinks is making it difficult for Finland to achieve the EU’s 2021-2025 climate commitments and its own carbon neutrality targets. The situation can only be rectified by reducing logging, which has reached record levels, and which has been the main reason for the decline in the carbon sink. The report recommends that the annual logging target should be reduced to 65-68 million cubic metres, whereas the current rate is around 75 million cubic metres per year.
Lego begins construction of USD 1 billion ‘carbon neutral’ factory in Virginia
Lego has started construction on its new carbon-neutral factory in Chesterfield County, Virginia. The 340-acre site is expected to include on-site solar power generation, with a total electricity generation capacity of 30-35 MW. The firm said it aimed to achieve Gold LEED certification and zero waste to landfill throughout the site's operations. Once completed, Lego said the factory would be entirely carbon-neutral during operations, with a target to achieve net zero by 2050 at the latest.
Finnish biotech startup raises €11M to make planet-friendly fungal protein from the by-products of food and agricultural processes
EniferBio, a Finnish biotech company spun out from VTT Technical Research Centre of Finland, has raised €11 million in a Series A funding round. The funds will be used to accelerate the development of EniferBio's microbial technology, which helps create sustainable protein. The proprietary PEKILO® technology uses a fungus that, through a special fermentation process, can produce a dried powder rich in protein and has a vast variety of usage cases, such as pet food and aquafeed. The funding round was led by Maki.vc, with participation from Nordic FoodTech VC and Kesko.
Swedish energy monitoring company Mestro joins NY accelerator program to meet sustainability goals
Swedish energy monitoring company, Mestro, has been accepted into the SKYLINE accelerator program, a collaboration between the Swedish-American Chamber of Commerce in New York (SACCNY) and the Swedish Energy Agency, which introduces Swedish growth companies in energy and climate to New York's real estate market. The program aims to contribute to achieving the Biden administration's and New York's goal of net-zero carbon dioxide emissions by 2050. Mestro and seven other Swedish sustainability companies will take part in the program, which runs from mid-April to the end of September, with the aim of internationalising their business and future-proofing their services.
Epiroc and SSAB partner to introduce carbon-free recycled steel for battery-electric mining vehicles
Swedish mining equipment maker Epiroc has signed a supply agreement for SSAB Zero, a fossil-free and recycled steel. The steel will be used in Epiroc's battery-electric line of mining trucks and loaders used underground, and will be introduced as early as Q3 2023. SSAB Zero supports the circular economy as only recycled steel is used as raw material, and is produced without fossil emissions. The supply agreement is part of Epiroc's commitment to produce the world's greenest machines and SSAB's goal to contribute to creating fossil-free value chains.
Kempower reports impressive Q1 growth and aims to become top 5 EV charging company by 2030
Kempower, a Finnish manufacturer of electric car batteries, increased its order backlog to EUR 124.4 million in 1Q23, compared to EUR 29 million in 1Q22. The company's revenue grew by 385%, and it reported an operating profit of EUR 6.9 million, compared to the EUR 1 million loss in 1Q22. Kempower plans to establish itself as one of the top five companies in Europe and North America's electric vehicle charging market by 2030.
Helsingin Sanomat, Kauppalehti
Norway's oil fund earns 5.9% return in Q1 2023, increases in value by NOK 1,865 billion
Norway's oil fund, managed by Norges Bank Investment Management, earned a return of NOK 893 billion in Q1 2023, a 5.9% return. The equity investments made the most positive contribution, says the fund's deputy chairman Trond Grande. The value of Norway's oil fund increased by NOK 1,865 billion, reaching NOK 14,294 billion at the end of the first quarter, up from NOK 12,429 billion at the end of the fourth quarter. The fund's value is influenced by the return on investment, the krone exchange rate and the amount of new capital added by the government.
Wind power production in Norway experiences first Q1 decline since 2016
According to Statistics Norway (SSB), wind power production in the first quarter of 2023 was 5% lower than the same period in 2022, marking the first decline since 2016. One reason for this decline is the phasing out of the Norwegian electricity certificate scheme from 2021, alongside a reduction in investments in new production capacity. Opposition to onshore wind power has also increased. However, hydropower still dominates the Norwegian power system, accounting for 87.9% of the total production in the first quarter. Consumption in general supply, with around half coming from households, increased by 2.6% from the first quarter of 2022.
What we’re reading
- UN: World set to blow through 1.5C carbon budget in 10 years (Climate Home News)
- German government adopts fossil boiler ban, starting 2024 (Euractiv)
- “We could sell EVs for zero profit”: Tesla throws down gauntlet to car industry (The Driven)
- UN’s Green Climate Fund too scared of risk, finds official review (Climate Home News)
- US pledges $1 billion to Green Climate Fund amid call to keep 1.5C in reach (Climate Home News)
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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