27 June 2023

Today's Top Nordic Green News:

• Modvion Constructs World's Tallest Wooden Wind Turbine Tower
• Swedish Electricity Exports Will Increase until 2026: Forecast

Modvion Constructs World's Tallest Wooden Wind Turbine Tower

Swedish wood technology company Modvion is set to build a 105-metre-high wind turbine tower, the tallest made of timber worldwide. This innovative tower, equipped with a 2MW Vestas turbine, will offer climate-neutral wind power and significantly reduce carbon emissions associated with the tower’s construction. Modvion CEO rationalised the project as making it “possible to build higher at a lower cost” by using wood instead of steel. Modvion is currently manufacturing the timber modules in its new Gothenburg factory. The tower’s innovative design aims for cost-effective assembly and easier transportation. Expected completion is at the end of 2023. The project will stand as an example of the potential that wooden towers have to enhance wind energy efficiency while utilising sustainable materials.

Modvion

Swedish Electricity Exports Will Increase until 2026: Forecast

According to the latest short-term forecast from the Swedish Energy Agency, Sweden's electricity production will grow faster than consumption, resulting in a rising electricity export until 2026. This marks a reversal of the downward trend in electricity usage seen in the 2000s. The forecast highlights factors including delayed industrial start-ups and electrification of the transport sector as contributing to increased electricity demand. Wind power production is expected to nearly double by 2026, reaching 52 TWh. Solar electricity is projected to increase from 1.1 TWh in 2021 to 7.1 TWh in 2026, indicating a significant growth in renewable energy sources. The forecast nevertheless also reveals an increase in the use of fossil fuels starting from 2024, primarily due to adjustments in the reduction obligation.

Press release

Scania Takes a Major Step Towards a Fossil-Free Supply Chain with First Order of Green Steel

Scania has placed its first order for green steel from H2 Green Steel, marking a significant milestone in its journey towards a fossil-free supply chain. H2 Green Steel's factory in Boden is set to commence production in 2025, with the first delivery scheduled for 2027. The agreement aligns with Scania's ambitious strategy to eliminate carbon dioxide emissions from key materials used in production, aiming for 100% green steel, batteries, aluminium, and cast iron by 2030. Scania's order also adds weight to its role in the First Movers Coalition, a global public-private partnership launched by the World Economic Forum which aims to decarbonise hard-to-abate sectors.

Cision , Press Release

Eolus Sells 125 MW Wind Power Projects to BKW

Renewable energy company Eolus has sold three wind power projects, Skallberget/Utterberget, Tjärnäs, and Rosenskog, totaling 125 MW, to Swiss utility company BKW. The projects, currently under construction, are expected to be commercially commissioned in 4Q23. The deal includes the transfer of project company shares, with an enterprise value of €189.3 million and a purchase price of €18.9 million. Eolus will oversee construction on behalf of BKW and provide long-term technical and operational services. These projects in southern Sweden will address the growing demand for renewable energy in the region and contribute to a carbon-free future.

Placera

What we’re reading:

• Helping poorer countries fund the climate transition (Financial Times)

The Financial Times editorial board emphasises the need to help poorer countries fund their transition to a low-carbon economy. It states that an estimated US $2 trillion per year is required for these countries, excluding China, to address climate change and its impacts by 2030. As it currently stands, investments only amount to around US $500 billion. To mobilise such significant sums, Emmanuel Macron for example, has this past week argued that the global community must be more ambitious in raising finance and must go about doing so in smarter ways.  

The editorial suggests several strategies to achieve this, including (1) leveraging multilateral development banks (MDBs) more effectively by increasing their investment capacity, de-risking private sector investments in low-income countries, (2) exploring innovative debt reduction methods, and (3) creating new financial products tailored to the funding challenges. The editorial takes pains to highlight the importance of reducing the debt burden of low-income nations and exploring new revenue streams such as a global carbon tax. It calls for seriousness and smartness in tackling the climate challenge to ensure the planet's sustainability.

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