24 January 2023

Decision about wind farms delayed in Sweden

Wind farm applications for offshore wind power of SEK 300-400 billion await approval from the Swedish Government. Vattenfall, responsible for most of the projects, has applied for a total of four. Vattenfall’s latest application was submitted on 21st December 2022 to build the wind farm Posiedon with the company Zephyr. 

The delay in approval is due to shortages in financing for seabed studies, which need to be done before companies can get permission to build wind farms. During the summer of 2022, the government transferred the responsibility of the seabed studies to Sveriges geologiska institut (SGU). While SGU got an increased workload from the summer, their budget did not increase. SGU’s director-general says they have asked the government for SEK 8 million, which the government has declined. This risks further delaying the permit process for wind power. Moreover, the longer waiting times for permissions make it more expensive for the companies seeking licences.

MSN Aftonbladet

Seatwirl: rights issue oversubscribed

Swedish floating offshore wind farm company Seatwirl issued a rights offering to their shareholders on 24 November 2022. A rights offering entails that existing shareholders can buy further shares in the company. The rights issue was subscribed to 109%, from which 84% were subscribed with the support of unit rights. This means that Seatwirl will receive a total of SEK 64.5 million before transaction costs. 

Di

Minesto and SEV extend and strengthen tidal energy partnership 

Minesto, a leading developer of ocean energy, and SEV, the Faroe Islands energy company, have renewed and expanded their cooperation agreement. This agreement covers the tidal energy build-out in the Faroe Islands, electricity production in Vestmannasund and the first large-scale tidal array in Hestfjord. Firstly, the new agreement highlights the exclusivity of the Hestfjord project, which can be seen in ongoing work to make investments in the project attractive. Secondly, the agreement outlines expanded operation in the existing Vestmannasund production due to the recently installed second seabed foundation and additional electrical infrastructure. The collaboration entails the sharing of production and performance data, as well as conducting an in-depth analysis of site characteristics.  

"A strengthened and expanded collaboration with the energy company SEV is a cornerstone for Minesto in the creation of one of our first tidal energy parks. SEV's role as a pioneering customer, investor in infrastructure and obvious leading local player is highly appreciated and important,"   says Dr. Martin Edlund, CEO of Minesto.

Press Release

Norwegian ministers intend to start climate partnerships with businesses

Norway's Climate and Environment Minister Espen Barthe Eide (Ap) and Industry Minister Jan Christian Vestre (Ap) have signed an agreement of intent to form climate partnerships with businesses. Vestre believes, ‘Closer interaction and strong partnerships are crucial to speeding up the green transition in the business world, and not least, succeeding in the green industry promise.” The agreement entails structured dialogue between the Norwegian government and businesses at an industry level and aims to establish a common understanding of what is required to achieve climate goals. A prerequisite for entering into the letter of intent is to contribute to a green transition in the industry, energy and resource efficiency and a circular economy. 

Press Release

Green Hydrogen Systems (GHS) shares rise by 277% 

Green Hydrogen System (GHS) manufactures electrolysers for green hydrogen production. The Danish hydrogen company has seen a rise in share price by 277% in the past month. But, shareholders should still prepare for a large operating deficit, as the group is aiming for a capital increase in the next months. 

Sales in 2022 were valued at DKK 10 million, which is an increase from the sales of DKK 5.2 in million in 2021. The increase in sales was largely due to two order deliveries of A90 electrolysers. GHS has gotten four more orders of A90 electrolysis since the fourth quarter of 2022 and their sales pipeline continues to grow. In 2023, sales are predicted to be DKK 120-160 million. 

However the company is in deficit at an EBITDA and EBIT level. EBITDA, ended at minus DKK 249 million, while at the EBIT level, there was a loss of DKK 283 million. Now there is a need to pad the balance sheet with new money. The company is in dialogue with several shareholders on the possibility of a capital increase within the first half of 2023.

euroinvestor.dk, npinvestor.dk

What we're reading:

• UK to propose carbon border tax as part of steel industry aid package (Financial Times)
• U.S. wants to see quicker progress on World Bank reforms- Yellen (Reuters)
• How EU countries use firewood to bloat their renewable energy stats (Euractiv)

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