In spite of the IEAs report, suggesting that it was time to end oil exploration and development, Equinor is unconvinced that the world will achieve the goals of the Paris Agreement. The company is planning for oil production for several decades to come.
Equinor's chief economist Erik Wærness said that the IEA report has no consequences for the oil giant's future plans. On the contrary, Equinor is investing in decades of continued profitable oil and gas production. Wærness said “We can not make strategic decisions based on a single element in a scenario with extremely many other elements.”
Equinor believes it is unlikely to be able to limit global warming by 1.5°C - the adjustment required is enormous – and hence “We will maintain profitable production from, for example, Johan Sverdrup and Troll for many decades to come.” But at the same time, Equinor has committed itself to being climate neutral by 2050. (Dagsavisen)
KLP, a Norwegian insurer and pension fund, has joined forces with Macquarie Asset Management, to create a platform for investments in green infrastructure. The platform will select investments in debt that finance solar power, wind power, hydropower and sustainable energy storage. KLP will contribute USD 200 million, which is equivalent to about NOK 2 billion. Macquarie Group is the world's largest infrastructure manager, through the acquisition of Green Investment Group, set up by the UK government in 2012 to accelerate green investment. (Kommunikasjon)
Nel, which providing solutions for the production, storage and distribution of hydrogen, is the share with the largest short positions placed on it. At least 5.6% of the shares in Nel have now been lent for short sales, a bet that benefits from the share price falling. Nel is a popular "green" share amongst Norwegian and German small savers, which has helped send the price up significantly. And since the turn of the year, it has gained 38% to a price of NOK 18, implying a market value of NOK 26 billion. A Pareto Securities analyst commented “We have a price target of NOK 8 for the Nel share, so in that sense we think all movements down towards it are correct. We have faith in the hydrogen market, but think the pricing of Nel is too high and that it does not take into account risk related to the market, competition or future profitability.” (E24)
A new proposal from the government would mean that biogas cars are no longer counted as green cars. The proposal follows an EU directive on, among other things, environmental requirements for the procurement of cars, and would change the definition of a green car to be one that emits no CO2 emissions at all. Only electric cars, and possibly some plug-in hybrids, and hydrogen cars would be classified as environmentally friendly from 2022. According to Mats Ola Larsson, a researcher at IVL, the Swedish Environmental Institute, the proposal is stupid, because biogas cars are also a good environmental choice. The Minister of Infrastructure Tomas Eneroth (S) said that this is an EU directive that Sweden must implement.
Avfall Sverige, an organization that represents Sweden’s waste industry, also points out the contradictions in the policy. Caroline Steinwig, an advisor to Avfall Sverige said ”We constantly receive conflicting signals, when what we would need is clarity and long-term perspective … Biogas cars are not considered a green investment, but at the same time, the Waste Directive requires that all biological waste be recycled biologically by 2023, and the EU's methane strategy wants to see increased recycling of organic waste and manure. The Swedish milestone for food waste also requires a strong investment in digestion: by 2023, at least 75% of food waste must be treated biologically so that plant nutrients and biogas are utilized … Politicians can not push at one end and then cut off the legs for the biogas' absolute largest market.” (Nyteknik, Avfall Sverige)
Soltech Energy Sweden AB has acquired 100% of Takbyrån i Alingsås AB, a company with sales of SEK 100 million and 35 employees, based in Alingsås. The plan is to integrate solar energy into the product range and increase both sales and earnings. The acquisition is the Soltech Group's second largest, consolidating an already strong position in roofing. (Svensk Byggtidning)
Europe’s longest ever underwater electricity cable was inaugurated on Thursday by German Chancellor Angela Merkel and Norwegian PM Erna Solberg, marking the completion of the landmark €1.8 bln NordLink project linking the two countries’ grids. The 623km cable, with a capacity of 1,400 MW, will allow Norway to export excess hydroelectricity to Germany, and Germany to sell excess wind power to Norway. An even longer underwater electricity cable is currently being built between the UK and Norway, set to come online later this year. (Euractiv, press release)
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 clip the stories of most relevance to international businesspeople and policy experts from the flow of news. We supplement these with our own opinion pieces and commentary, in English.