Norway's plans to potentially restrict its electricity exports have provoked a strong reaction. Grid operators Fingrid, Svenska kraftnät and Denmark’s Energinet issued a joint statement on 22 August urging the Norwegian government to reconsider the situation and not to impose export restrictions on transmission lines. They said that Nordic cooperation in cross-border electricity production and transmission has significant social benefits, arguing that if the European electricity market legislation starts to allow export restrictions, it could have a significant negative impact on the Nordic and European electricity markets. In times of crisis, it is particularly important to allow the market to function by allowing all available resources to participate in securing electricity supply or providing the required flexibility, thereby contributing to security of supply.
The situation is particularly sensitive for Finland, as it is no longer possible to import electricity from Russia and trade in electricity with Sweden is often restricted due to bottlenecks in the Swedish electricity system. In a criticism of Norway, Mika Lintilä, the Finnish Minister of Economic Affairs, said that Norwegian export restrictions would not only go against agreed principles, but also weaken common trust in the market system. This decision would be particularly hard hit when Europe is waging war.
Financial Times, SVK, yle, Second Opinion
Yara has entered into an agreement with Equinor, Total and Shell's Northern Lights for the storage of carbon dioxide on the Norwegian Continental Shelf. The agreement allows Yara to store 800,000 tonnes of CO2 on the Norwegian continental shelf at the Yara plant in Sluiskil, the Netherlands. This could result in significant cost savings for Yara. The price of CO2 has recently approached NOK 1,000 per tonne, which would mean an annual cost of NOK 800 million if Yara did not receive a free quota. The company can receive the CO2 at Øygarden in Vestland County and pump it into reservoirs on the Norwegian continental shelf. The project will now enter a second phase until an investment decision is made, which will increase the capacity of the warehouse to between 50 and 6 million tonnes per year. The volume of CO2 from Sluiskil in the Netherlands means that the first phase of the Northern Lights project is now at full capacity, and Equinor CEO Anders Opedal sees this as the opening of a value chain that is decisive for the world to reach net zero emissions.
Swedish-Kenyan electric vehicle manufacturer Roam (formerly Opibus) is hoping to gain significant traction in selling its new electric motorbikes through a new partnership with financial platform M-Kopa. The company's latest motorbike, the Roam Air, which was unveiled earlier this summer, was developed and designed in Kenya and has been specially adapted for the East African market. The model is equipped with a dual battery pack, which partially increases the range but also creates a variety of charging options. The price of USD 1,500 is slightly higher than the price of an equivalent petrol-powered motorbike in today's African market. But the electric motorbike has one big advantage. According to Wilson, the model's operating costs are more than 70% lower than those of an equivalent fossil-powered motorbike.
Compared to pre-Covid-19 levels, Swedish shipping company Stena Line has reduced its CO2 emissions by 11% per tonne nautical mile and reduced total ship emissions by 4%. As part of the company's strategy to achieve CO2 neutrality, Stena Line aims to reduce its ships' CO2 emissions by 30% by 2030. Stena Line now uses 100% renewable energy in port operations and during ship lay-ups. Among other things, 20% of Stena Line's terminals are equipped with shore power systems. Again, renewable energy is used to load battery packs on board and for land-based electric vessels for port operations. Other initiatives that will help to ensure that Stena Line gradually moves towards a green operating base in the future are the fast-tracking of electric trucks for Stena Line's ferries and a pilot project to use recycled methanol from the metal industry as fuel for ships. Niclas Mårtensson, CEO of Stena Line, expressed his pride in the company's upcoming deployment of the new E-Flexer ferry to improve overall operational efficiency. The company will commit to continue to be sustainable and socially responsible.
Lloyd's Register, the world's leading shipping register, has approved Torghatten Nord's plans for a hydrogen ferry in Vestfjord. The shipping company is thus taking an important step towards starting to build ships in a project that is receiving global attention. The gas ferries are scheduled to be in operation in autumn 2025. Together they will help to reduce CO2 emissions by 26,500 tonnes per year. Hydrogen safety experts (HYEX Safety) and possible suppliers have been involved in an extensive and detailed 3-day so-called HAZID (Hazard Identification) precisely to ensure that the hydrogen ferries are as safe as modern diesel ferries. Torkildsen of Torghatten Nord says that the project opens up concrete opportunities for global green shipping, new industries in Norway and especially Bodø and Lofoten. Torkildsen also emphasised that the development, construction and operation of the hydrogen ferries is a pioneering work that the shipping company wanted to do and is totally dependent on good cooperation with partners such as Lloyd's.
Ingka Investments, the investment company of the Ingka Group, has purchased a 49% stake in three Swedish offshore wind power development projects from OX2. OX2 will receive an initial payment of SEK 610 million. After licensing, if both parties agree to continue development, OX2 will receive a pre-agreed payment of EUR 100,000/MW equivalent to 49% of the total planned capacity. The transaction is expected to have a positive impact on operating profit of SEK 584 million in the second half of 2022. After completion of the transaction, OX2 expects to have an operating profit of more than SEK 1 billion in 2022.
The three projects are Galatea-Galene outside of Halland, Triton outside of Scania and Aurora between Gotland and Öland. These projects have the potential to generate up to 38 TWh of total electricity, which, once operational, will be equivalent to more than 25% of Sweden's total electricity consumption in 2021. The projects are under development and major wind applications have been submitted. The agreements for these three wind projects are the first of their kind for OX2 and the first deals for offshore wind.
In the second quarter, NILAR reported net sales of SEK 1.8 million and a loss of SEK 58.5 million. EBITDA showed a loss of SEK 42.8 million. During the quarter, a new strategic partnership was established between NILAR and Enequi, based on the joint development of an energy storage system consisting of Nilar's new oxygen rechargeable batteries and a control system developed by Enequi. NILAR also received its first order for 1.15 MWh, with an order value of approximately SEK 10 million. During the quarter, the company produced the first batteries with oxygenation capabilities. The upgrade is a big step forward and means that its batteries last 3-4 times longer than their predecessors and can be reused for longer life and durability.
The Green Party wants to increase the amount of solar power generated in Finland. The party's goal is to increase the amount of solar power generated by 10 times by 2025 and 20 times by 2030. The Greens will achieve this through industrial production and small-scale production, such as more roof panels for detached houses. The Greens also aim to promote the production of solar power through state-guaranteed energy self-sufficiency loans. In addition, the party wants to reduce the VAT on the sale and installation of solar panels.
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.