22 September 2022

Fortum's Uniper strategy fails to survive the war in Ukraine

Fortum reached an agreement with the German government on the nationalisation of Fortum's subsidiary Uniper. Fortum sold its entire Uniper stake to the German government. Now, Fortum has gotten rid of the huge risks and losses associated with the gas deal and the company is developing a new strategy to focus on the Nordic market. Fortum is able to build a working concept out of all this, because Fortum has a large amount of zero-emission hydro, nuclear and wind power, and the company is active in the battery recycling business as well as other recycling businesses. 

However, as recently as 2021, Fortum produced its best operating result in euros in its history, and Uniper's share was half of that. Unfortunately, the war waged by Russia in Ukraine and the strategy of using energy as a weapon against Europe were not taken into account by Fortum. Fortum is currently assessing the political costs, with the losses amounting to approximately EUR 6 billion. 

(Mundus will also publish an in-depth report on Fortum’s Uniper catastrophe  in its September edition of the Finland Monthly Brief tomorrow.)

KL

Hexagon Sweden's R-evolution launches venture capital to boost green tech start-ups

Hexagon AB is a leading provider of digital reality created through sensors, software and autonomous solutions. Hexagon's sustainable innovation and green technology investment business unit, R-evolution, has launched a new business area. R-ventures which will help green technology companies achieve their next major technological breakthrough by providing them with start-up capital or technology from Hexagon's portfolio. R-evolution looks for promising investment opportunities primarily in its focus areas, including sustainable energy and storage, green hydrogen, carbon capture, plastic waste management, desalination, plant-based food, ecosystem monitoring, sustainable agriculture and the transition to a circular economy. Material Mapper, a Norway-based company working on the transition to a circular economy in the construction industry, has received the first investment in the programme to increase the reusability of construction materials.

INDUSTRInyheter, Press Release

European Commission approves EUR 5.2 billion in funding for hydrogen energy

The European Commission has approved a EUR 5.2 billion financing project. The money will be used to finance new projects in renewable energy, mainly for the development of hydrogen infrastructure and technology. According to the European Commission, the financing will lead to private investment of up to EUR 7 billion. The financing project, named IPCEI Hy2Use, has been prepared by 13 member states, in which Sweden, among others, is involved. Norway is also involved in the project. In a press release, the European Commission said that within the framework of the IPCEI, 29 companies operating in one or more member states, including SMEs and start-ups, will participate in 35 projects.

Börskollen

Viking Line hopes to achieve carbon neutral shipping within five years

Viking Line is involved in a project to develop a CO2-neutral green corridor for freight and passengers between Turku, Åland and Stockholm. The prerequisites for success are the construction of a domestic facility that can produce synthetic fuel from CO2 and hydrogen, and that the ships are sufficiently energy efficient to make it economically interesting to run on their own fuel. Rauma Marine Constructions, Viking Line, Åbo Akademi and Kempower are involved in the project. The project has recently received support from the Finnish Business Association of around EUR 1.6 million, and Viking Lines has received support from the provincial government to participate with funding of up to EUR 150,000.

Press Release 

New green hydrogen alliance strengthens ties between the US and Denmark

Trade ties between the US and Denmark are now being strengthened through a formal collaboration on green hydrogen. The US-Danish Green Hydrogen Alliance signed a cooperation agreement in Washington DC, with the hydrogen industry as one of the Danish signatories. The Danish Prime Minister Mette Frederiksen was involved in the announcement as part of a massive business promotion campaign in the USA. The aim of the new alliance is to create a knowledge corridor between the US and Denmark, which will make it easier for Danish companies to gain a foothold in the US and help local companies and organisations to transform themselves through hydrogen and PtX. Danish and US participants will be able to share knowledge and experience on the production, expansion and implementation of green hydrogen solutions more easily. 

VIA/ritzau/

SSAB to supply fossil-free steel to Norsk Stål

SSAB Steel has reached an agreement to supply fossil-free steel to Norwegian steel distributor Norsk Stål starting in 2026. Under the agreement, Norsk Stål becomes the first external distributor of SSAB fossil-free steel in the Norwegian market. 

Realtid

Vestas receives order from Brazil

Energy company Polimix Energia has signed an order with Vestas for 104 MW. The order includes 23 V150-4.5 MW turbines to be installed at the Mundo Novo wind farm in São Miguel do Gostoso, Rio Grande do Norte, in the north-east of Brazil. In addition to the wind turbines themselves, the order includes a 20-year service agreement. The plants are scheduled for delivery in the third and fourth quarters of 2023 and will be operational in the second quarter of 2024.

Metal Supply

What we're reading

• Germany nationalises gas giant amid energy crisis (BBC)
• Pressure grows after World Bank chief dodges climate questions (France24)
• New York climate week: Carney concedes banks shrinking from green guidelines (Financial Times)
• UN Race to Zero drops its ‘no new coal’ language (Financial Times)

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