21 March 2023

Today's Top Nordic Green News:

• Swedish Energy Agency provides new short-term electricity usage forecast
• Swedish Candela secures SEK 210 million in funding round led by EQT Ventures and investors, plans to expand production of electric passenger ferries 
• Ørsted only bidder for offshore wind project in Rhode Island with surprisingly high prices

Swedish Energy Agency gives new short-term electricity usage forecast

According to the Swedish Energy Agency's (Sw. Energimyndigheten) latest short-term forecast, electricity is becoming increasingly important in Sweden's energy system as it continues to replace other energy carriers in line with the society's increased electrification. The forecast predicts that electricity production from wind and solar will increase sharply in the coming years, with wind power accounting for the largest increase. As a result, Sweden's net export of electricity is expected to increase until 2025.

The transport sector is expected to use significantly more electricity as the vehicle fleet is rapidly electrified, leading to a decrease in the use of oil products, mainly diesel, during the forecast period. In the industrial sector, electricity is partially replacing fossil energy sources, and due to new establishments, electricity use may increase even more, though there are major uncertainties towards the end of the forecast period. 

However, the forecast is characterised by a number of uncertainties, including the war in Ukraine, high and volatile energy prices, and the currently high inflation prevailing in Sweden and the surrounding world. The latest forecast contains more and greater uncertainties than usual, making it more difficult to make accurate assessments of developments even in the short term.

The forecast predicts;

• electricity production: increasing from 168 TWh in 2021 to 189 TWh in 2025
• wind power: increasing from 27 TWh to 50 TWh 
• solar power: increasing from 1.1 TWh to 5.4 TWh. 
• net export of electricity: increasing from 25.6 TWh to 44 TWh in 2025
• use of biofuels: increasing from 141 TWh to 154 TWh
• use of oil products: decreasing from 109 TWh to 87 TWh
• electric cars: increasing from 110,000 in 2021 to 750,000 in 2025, corresponding to 4.4 TWh.

Press Release

Swedish Candela secures SEK 210 million in funding round led by EQT Ventures and investors, plans to expand production of electric passenger ferries

In a recent funding round, Swedish electric boat company Candela secured SEK 210 million (approximately $20 million), with EQT Ventures and investors Joel Eklund (from Fosielund Holding AB) and Svante Nilo Bengtsson (from Marknadspotential AB) leading the charge. Ocean Zero LLC and other investors also participated. This comes after Candela's $24 million round last year.

Primarily, the funding will be used to expand the production of Candela's passenger traffic ferries, with Stockholm serving as a testing ground. Specifically, the funds will be used to launch the P-12, a 30-passenger commercial hydrofoil ferry, and to develop software for real-time fleet routing. The P-12 is a fossil-free electric vessel with a range of up to 60 nautical miles at a cruising speed of 27 knots, and which Candela says uses 80% less energy than traditional craft. The shuttle is designed for coastal, archipelago or lake-based transport.

The company already has agreements with partners in the US, Mexico,and Germany and is in talks with Gulf states about large contracts. Moreover, part of the investment will be used to develop technology for an "on demand" solution for ferries. Additionally, the private boat C-8 will also continue to be produced. Candela aims to generate two-thirds of its turnover from ferries and one-third from leisure boats over the next five years.

Breakit, TechCrunch, Di

Ørsted only bidder for offshore wind project in Rhode Island with surprisingly high prices

Ørsted and American partner Eversource are the only bidders in the Rhode Island temder for up to 1 GW of offshore wind, bidding for the 884 MW Revolution Wind 2 project. The price of the bid is not yet clear, but prices of US offshore wind projects have been a hot topic over the past year due to rising costs of raw materials and components, and rising interest rates causing anxiety among project developers that agreements have been made at unrealistically low prices. The area Ørsted has bid on was originally intended for New York's follow-up round, which the company lost to Equinor in 2021. However, the projects that have so far come out of the invited offshore wind area have been at higher prices, making it an unintended victory for Ørsted.

Press Release

Norwegian Industry Minister discusses Inflation Reduction Act with US Officials, emphasises green industrial cooperation and equal treatment to EU

The Industry Minister of Norway, Jan Christian Vestre, visited Washington DC to discuss the Inflation Reduction Act's (IRA) impact on Norwegian exports to the US and to promote the development of green industrial cooperation between the two countries. The Minister highlighted Norway's expertise in green technologies, including hydrogen production, wind power and carbon capture and storage. He also stressed the need for Norway to be treated equally with the EU in terms of trade policy under the IRA and showed positivity in meeting with all central parts of the Biden administration on the first working day after the EU president's meeting. The meetings involved representatives from the US Department of Commerce, Department of Business, Ministry of Finance and the National Security Council.

Press Release

Volvo and Boliden collaborate on electric trucks for underground mining, with start in 2023

Volvo Trucks and Swedish mining company Boliden have partnered to electrify truck transport in mining operations. Boliden, one of the world's first mining companies to use battery-powered trucks for heavy transport, will begin in 2023 to use two electric Volvo trucks in the Kankbergs mine outside Skellefteå, Sweden. Volvo's broad range of electric trucks includes six different models that cover various transport needs, and the goal is for 50% of new trucks sold globally to be electric by 2030. Boliden's commitment to reduce its CO2 emissions by 40% by 2030 requires the electrification of its transportation, and the use of electric trucks will help reduce carbon emissions in the mine by more than 25% if all vehicles are replaced.

Press Release

Hyon signs contract with Norwegian Hydrogen for delivery of mobile hydrogen tanker

Norwegian hydrogen solutions provider Hyon has signed a contract with Norwegian Hydrogen AS for the delivery of a mobile hydrogen tanker for maritime and land-based applications. The tank will initially be used to distribute hydrogen produced at Norwegian Hydrogen's facility in Hellesylt. Delivery is expected in Q3 2023 and Norwegian Hydrogen will partially cover Hyon's development costs. The financial conditions in the contract reflect a joint effort to prepare for more extensive commercial deliveries.

E24

EU-funded H2Accelerate partnership to launch 150 hydrogen-powered trucks in 2024

H2Accelerate, a partnership between truck manufacturers Daimler, Iveco and Volvo, plans to put 150 hydrogen-powered trucks into operation next year. The partnership has received millions from the EU to make this into a reality. There are two aspects of the project, which are hydrogen filling station infrastructure and truck fuel cell technology development. Eight high-capacity hydrogen filling stations will be built in the first phase, with at least 20 more set to follow as part of the Important Projects of Common European Interest scheme. Norway's independent research organisation Sintef will coordinate the second aspect of the project, which will involve building fuel cell technology into tractor trailers. 

Tungt

Finland's hydrogen industry strengthens with foreign investment from French company Lhyfe in hydrogen project developer Flexens

French green hydrogen producer Lhyfe has invested in Finnish hydrogen project developer Flexens, becoming the owner of Flexens with a 49% share. Lhyfe was interested in investing in Flexens' hydrogen projects in Finland because of the availability of renewable energy, the favourable price of electricity and the potential for offshore wind power projects in the Baltic Sea. Moreover, Lhyfe was interested in Flexens’ experience in energy market integration, which includes planning for renewable electricity procurement, transfer of electricity and sales of by-products such as heat, oxygen, and steam. 

The investment will also bring know-how and experience in building hydrogen plants, as well as financing and operational support. This investment is significant for Finland because it further cements the country's position as a leader in the green hydrogen industry, attracting interest and investment from abroad.  

Flexens has eight projects pending, the largest being the Kokkola project, where it is intended to produce both green hydrogen and hydrogen further refined into ammonia for the fertiliser industry and as fuel for shipping. The planned capacity of the hydrogen production plant is 300 megawatts, with production planned to start at the end of 2027.

Tekniikka&Talous, Talouselämä, EnergyGlobal

Finnish city Jämsä rejects plans for plastic waste oil production by Kaipola Circular, citing environmental concerns and links to plastic oil business in Thailand

Jämsä, a city in Finland, has rejected plans by Kaipola Circular, a Finnish company planning to produce oil from plastic waste using pyrolysis technology. The city's environmental manager, Piia Koski, argued that Kaipola Circular's planned trial operation is not a new technology or testing of new raw materials or fuel as referred to in Section 31 of the Environmental Protection Act, and that "activities according to the probation notice should not be accepted." An investigation by Finnish public broadcaster Yle revealed that the people behind Kaipola Circular are involved in the plastic oil business in Thailand and have links to the Finnish-led Corsair Group, which offers companies and individuals the opportunity to offset their plastic footprint and earn cryptocurrency units through network marketing.

Yle

Dovre's subsidiary Suvic Oy to construct Finland's largest solar power plant named Aurinkopuisto with a 32 MW capacity in Rauma's Lakar Area by early 2024

The Dovre Group's subsidiary, Suvic Oy, has signed an EPC contract with CPC Finland Oy to construct a 32 MW solar park named Aurinkopuisto. The Dovre Group is a Finnish company that provides project management, consulting,and engineering services to various industries such as energy, infrastructure, mining, and pulp and paper. Their subsidiary, Suvic Oy, specialises in renewable energy construction, including wind and solar power parks. The park, located in the Lakar area near Rauma, is expected to be completed by early 2024 and will be the largest solar power plant in Finland under construction or completed. Suvic's order book for 2023 is now around EUR 50 million, demonstrating its ability to expand into new areas of renewable energy construction. Suvic specializes in implementing wind and solar power parks and project management, as well as offering contracting services for energy and industrial construction.

Press Release

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