24 March 2023
Today's Top Nordic Green News:
- Denmark and Germany to establish hydrogen pipeline between the two countries
- Sweden's SD threatens government crisis over biofuels obligation
- Swedish Ministers promise to build new nuclear power before 2026
- Fortum and Outokumpu plan to build a small-scale nuclear reactor in Tornio
Denmark and Germany to establish hydrogen pipeline between the two countries
Denmark and Germany have signed an agreement to establish a buried hydrogen pipeline between Denmark and northern Germany, with completion targeted for 2028. The purpose of the declaration is to clarify the framework around the line and who will operate it. The Danish-German cooperation on a hydrogen pipeline must be seen in the context of the broad agreement on Power-to-X, which The Danish Parliament (Folketing) entered into in March last year. With the agreement from March, Denmark aims to build an electrolysis capacity of four to six gigawatts by 2030.
Sweden's SD threatens government crisis over biofuels obligation
The reduction obligation (Sw. reduktionsplikt), how much biofuel must be mixed in petrol and diesel, continues to be an infected issue amongst Sweden's governing parties. In order to bring down the price of petrol and diesel, the Government promised last autumn to lower the reduction obligation. It should be at the EU's minimum level, they said, but the parties have interpreted the level completely differently. According to the far-right Sweden Democrats (SD), lowering the reduction obligation to ‘the EU's minimum level’ means that the amount of biofuels that must be blended into petrol and diesel should be cut to zero. "The Moderates and the Christian Democrats have signalled that they want to see the share of biofuels at around 6%, while the Minister for Climate and the Environment, Romina Pourmokhtari (L), has been talking about 12-16%.
Swedish Ministers promise to build new nuclear power before 2026
Yesterday, the Minister for Finance, Elisabeth Svantesson (M), and the Minister for Civil-Defence, Carl-Oskar Bohlin (M), promised that new nuclear power will begin to be built in Sweden before 2026. This was announced during the welcome party held yesterday ahead of the Moderates’ annual Swedish meeting on 24-25 March. The Ministers were asked whether the Government will have time to break ground on a new nuclear power plant in Sweden before the next election in 2026, to which they answered positively. “Yes, we will have time,” said Svantesson while her party colleague, Bohlin responded, “Of course, it has to happen.” However, Svantesson further noted that it also depends on the government in office, as well as the state-owned energy company Vattenfall. Svantesson concluded by underlining that for the first time in 40 years, there is a majority in the Riksdag for more nuclear power.
In addition, Mundus News Finland reported on 22 March that Finnish energy company Fortum and UK-based Rolls-Royce SMR are investigating the possibility of building small nuclear power plants in Finland and Sweden. Rolls-Royce SMR, a subsidiary of Rolls-Royce, is developing small modular nuclear reactors that can generate electricity at 470 MW for at least 60 years. Fortum has described Rolls-Royce SMR as a pioneer in the small nuclear power industry, and its parent company's decades of nuclear experience are valuable to Fortum's ongoing research.
Fortum and Outokumpu plan to build a small-scale nuclear reactor in Tornio
The Finnish energy company, Fortum, and the steel company, Outokumpu, are collaborating to investigate the possibility of building a small-scale nuclear reactor in Tornio, Finland. The aim is to produce emission-free electricity for Outokumpu’s steel factory. Outokumpu is Finland's largest electricity user and a significant CO2 emitter. The reactor project is part of Fortum's exploration of small modular reactors, which have the advantages of scalability, and quicker and cheaper construction. The companies will study different types of small modular reactors on the market and investigate the economic conditions for building together. The project is still in the early stages of feasibility studies, and it may take a few years before any investment decision is made.
Taloussanomat, Hufvudstadsbladet
Finnish electricity companies will start paying electricity compensation to consumers
The EU Commission has approved the payment of retroactive electricity compensation to consumers as state aid, allowing energy companies to begin paying the compensation. The approval was necessary to implement the law and make compensation payments to consumers. The first instalment of compensation was scheduled to be paid in April, but some electricity companies may have already sent out bills without the compensation. Earlier this week, Finnish Energy (Fi. Energiateollisuus ry/ET) warned that the compensation payments based on electricity bills from November and December were at risk of being delayed due to the delay in obtaining state aid approval.
Norway supports Brazil's call for additional donors to reactivate the Amazon Fund
Norway has pledged its support for Brazil's efforts to attract additional donor countries for the Amazon Fund that it helped set up to fight deforestation and spur sustainable development. The fund, launched in 2009, was frozen in 2019 by former far-right President Jair Bolsonaro. It was re-activated by the government of leftist President Luiz Inacio Lula da Silva in January. The Amazon Fund was set up with an initial donation of USD 1 billion from Norway. Germany contributed USD 300 million. France and Spain have shown interest in contributing, while Britain is studying whether to contribute and the US signalled its intent to do so.
OX2 to develop large-scale energy park in Sweden's Blekinge, producing electricity and hydrogen
OX2 has announced the addition of a large-scale energy park southeast of Blekinge to its project development portfolio. The offshore wind farm is expected to have an installed capacity of 1.9 GW and produce both electricity and hydrogen, with an estimated total production of 8 TWh. The project is in an early phase and is set to begin production in the early 2030s. The next step is to produce an environmental impact statement, with no financial details or investment estimates provided.
Sweden to get first wooden wind farm this summer
Modvion, a Swedish company that develops wind power towers made of laminated wood, is set to build Sweden's first wooden wind turbine this summer. The wind turbine, which is 150 metres tall, will be installed at the site of customer Varberg Energi. The 105-metre wooden tower consists of 28 modules, each as tall as an average bus. The company plans to have series production in place within a few years. David Olivegren, one of the founders, believes that when the company reaches the scale-up stage, it can make a real difference to the climate.
Norway’s Storebrand Infrastructure Fund invests in Germany's largest planned offshore wind farm, He Dreiht
Norway’s Storebrand Infrastructure Fund, along with Allianz Capital Partners and Norges Bank, has acquired a 49.9% stake in He Dreiht, a 960 MW offshore wind farm in the German North Sea. The wind farm is expected to produce clean energy for the equivalent of approximately 1.1 million households in Germany and will have an annual production of approximately 5.3 TWh of renewable electricity, which corresponds to emissions of approximately 2.7 million tons of carbon dioxide. The project is set to start construction in early 2024 and aims for commercial operation in late 2025.
Sweden’s Energy Agency tasked with coordinating work on hydrogen development and infrastructure
The Swedish government has tasked the Energy Agency (Sw. Energimyndigheten) with coordinating the work on hydrogen in the country to contribute to the transition towards an emission-free society. The assignment aims to increase Sweden's opportunities to benefit from the work in hydrogen in the EU and includes analysing and discussing the strategic path choices for Sweden as a hydrogen nation, including the development of fossil-free hydrogen and its infrastructure from a systems perspective. Fossil-free hydrogen is essential for the transformation of industry and can also be used for the production of various fuels for aviation, shipping and other long and heavy transports, as well as for the production of ammonia and artificial fertilisers. The agency must submit a report by February 28, 2024, and a final report by December 1, 2024, to the Ministry of Climate and Business.
HODL SPAC Europe AB takes advantage of growing solar energy market with Windon AB acquisition
HODL SPAC Europe AB, a Special Purpose Acquisition Company, has announced its plans to acquire Windon AB, a Swedish producer of solar panels and associated products. The company's turnover was SEK 44.4 million in 2022 with EBITA of SEK 10.7 million (24% EBITA margin), and it will be acquired by HODL for approximately SEK 46M. Windon has shown strong growth combined with good profitability in a very exciting market driven by, among other things, higher energy prices and the electrification trend.
The acquisition is part of HODL's strategy to broaden its search to sectors beyond blockchain, with a focus on profitable growth companies with favourable market trends. HODL CEO Vahid Toosi believes that there are good opportunities for both continued organic growth and potential additional acquisitions, as the market for solar energy is predicted to grow by around 15% per year until 2030 globally, and the Swedish Energy Agency predicts that the installed solar energy capacity in Sweden can grow between approximately 17%-25% per year from 2020 to 2030.
Sud Renovables installs Soltech's first floating solar plant in Spain
Soltech's Spanish subsidiary Sud Renovables has installed Catalonia's and Soltech Group's first floating solar cell installation. The solar cells cover an area of approximately 715 square metres and are expected to produce approximately 140,000 kWh annually, which will be consumed by the biotechnology and agricultural company Atens. Sud Renovables is active in solar energy and storage solutions and often undertakes large-scale solar cell facades, roof-mounted solar cells and now also floating installations. The CEO of Sud Renovables, Manel Romero, sees a future growth of this type of solar energy solutions in the region, particularly as many dams are currently unused surfaces.
Norwegian Hydrogen establishes subsidiary Vireon to become Nordic’s largest supplier of hydrogen for heavy transport
Norwegian Hydrogen is establishing a new subsidiary called Vireon, with the aim of becoming the largest player in hydrogen filling stations for heavy transport in the Nordics. The new subsidiary will build and operate hydrogen stations, and its first filling station in Norway will be ready as early as 2023. The company has received support to build the first filling stations in Sweden and Finland as well. Vireon's CEO, Per Øyvind Voie, aims to engage in dialogue with all transport operators who are considering hydrogen, promising speed and willingness to invest. The Nordic region has long lagged behind the rest of Europe in terms of hydrogen infrastructure, and Vireon aims to become the leading player in filling stations for hydrogen in the Nordics.
EQT invests EUR 100 million in German ESG supply chain monitoring platform
Swedish investment firm, EQT, is investing EUR 100 million in German sustainability reporting firm, Integritynext. The firm has developed a cloud-based platform that monitors ESG conditions in supply chains, ensuring customers operate in line with international standards and regulations. The market for ESG reporting in Europe and the US is expected to grow by 50% annually, according to Sifted.
Finnish Wärtsilä engine successfully operates on 25% hydrogen mixture, demonstrating potential for low-carbon fuel in power generation
Finnish technology company, Wärtsilä, and Finland’s WEC Energy Group have successfully tested the Wärtsilä engine's ability to run on a 25% hydrogen fuel mixture. The tests were conducted on an unmodified Wärtsilä 50SG engine at WEC's 55 MW AJMihm power plant in Michigan, making it the first of its kind in the world. The tests showed that hydrogen can be processed and used safely and reliably in engine technology, and the engine's efficiency was improved, with greenhouse emissions reduced, meeting nitrogen emission regulations. Further tests showed that with a hydrogen mixture of 17% by volume, 100% engine load was achievable.
What we’re reading
- Governments battle over carbon removal and renewables in IPCC report (Climate Home News)
- How China, the US and Others [including Norway] Watered Down a Key UN Climate Document (Bloomberg)
- IPCC highlights rich nations’ failure to help developing world adapt to climate change (Climate Home News)
- Spain and IEA to host international Climate and Energy Summit in October aimed at building grand coalition to keep 1.5 ºC within reach (IEA)
- Hundreds of funds to be stripped of ESG rating (Financial Times)
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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