Volvo plans to lead the transition to fossil-free transport systems. By 2030, at least 35% of the products it sells will be electric, and the company says that it is only natural progression that battery production should be integrated into its future industrial system. The proposed site in Mariestads, close to the Volvo Group's engine plant in Skövde, will benefit from the existing industrial and logistical infrastructure as well as from fossil-free energy sources. Volvo has started the permitting process for this proposed site, with the final location to be decided after public consultation and operations dependent on environmental permits. The project will be a multi-million dollar investment and the plant will be the main site for Volvo's battery needs. In addition to batteries, AB Volvo is also investing in hydrogen and internal combustion engines that use no fossil fuels, but the main part of this investment will be directed towards battery electric vehicles.
Demand for batteries is driven by the growth in market share for electric vehicles. However, most of the raw materials for batteries come from countries with harsh environmental conditions and high CO2 emissions. To address these issues, forestry company Stora Enso and battery manufacturer Northvolt have teamed up. Stora Enso hopes to find a huge new market for their forestry products and the potential sales are said to be around 10 billion Swedish kronor. Stora Enso is developing Lignode, a raw material from Swedish and Finnish forests, to replace graphite used in battery anodes. Currently 95% of anode material in Europe comes from China, the development of Lignode may change the situation radically. The European pulp industry is theoretically sufficient to meet the needs of the entire European battery industry and Lignode is a renewable resource that absorbs CO2.
By working with Stora Enso, Northvolt will learn how to use the forest company's new anode material in the future, which it plans to develop for future generations of battery production, but has not yet decided which products to use it in and Lignode is still a long way from commercial production.
SvD reports that in its second quarter report, the oat drink manufacturer Oatly reports a loss of USD 62 million (SEK 637 million) before interest, taxes and depreciation. The company's CEO Toni Petersson is satisfied with sales growth of 22%, but also mentions several headwinds – not least the continued Covid-related shutdowns in China. "Global consumer demand is still as strong as before and we have a proven multi-channel strategy that we believe positions us well for long-term growth and profitability," he writes in the report's CEO's foreword. Turnover was SEK 1.8 billion, up from last year's second quarter when it was SEK 1.5 billion. But losses are also increasing - a year ago they were SEK 443 million. The stock has fallen heavily since it was listed last May at USD 17.0 per share on the Nasdaq stock exchange in the US, and is now trading at USD 3.92 each.
Hitachi Energy, formerly Hitachi ABB Power Grids, has won a major order from TenneT and TransnetBW, two of Germany's four Transmission System Operators (TSOs), to provide transmission solutions for the SuedLink DC4 high-voltage direct current line between the north and south of the country. Using Hitachi Energy's HVDC Light® technology, SuedLink DC4 will transmit up to 2,000 MW of renewable power, enough to power five million German homes. suedLink DC4 is an important investment in Germany's grid and energy transition, helping Germany to become carbon neutral by 2045.
Meanwhile, as part of its long-term commitment to Germany's energy transition, Hitachi Energy has recently completed orders for solutions to integrate large-scale renewable energy sources. These include the converter station for the high-voltage DC link between Germany and Norway, the converter station for an offshore wind farm in the German North Sea, the joint grid solution for the German and Danish grids and two offshore wind farms in the Baltic Sea; and a power quality solution to enable more renewable energy to flow from northern to southern Germany.
Hexicon has increased its direct ownership of the Munmubaram project outside of Korea and has purchased a 20% stake in the project company from the joint venture company Hexicon Korea. The Munmubaran project commenced in 2019 and investigations such as appraisals and analysis are currently underway. Once fully developed, the project is expected to generate 1,300 MW of power. Hexicon Korea is a joint venture between Hexicon and Coens & Co of Korea, in which Hexicon has a 49% stake. This is a significant transaction for Hexicon, strengthening its position as the world's leading developer of floating wind power projects. Its share price increase 5% after the announcement.
Hexagon Purus, through its wholly owned subsidiary Wystrach GmbH, has received an order from a long-term customer for a hydrogen distribution system worth approximately €5.2 million. Wystrach will supply the Hexagon hydrogen transport system and Purus' Type 4 cylinders will be used to supply hydrogen for industrial applications in Germany.
TECO2030 and AVL List GmbH have signed a partnership agreement for TECO2030's HyTruck fuel cell to be deployed to power AVL's DemoTruck. The DemoTruck project is building a Class 8/40-ton prototype truck that is capable of integrating a net fuel cell system of over 300kW into a standard truck chassis and it will be on the road by mid-2023. The HyTruck is an Austrian government-funded project whose goal is to develop, build, calibrate and validate a heavy-duty fuel cell system to meet the power, efficiency, reliability and lifetime requirements of commercial vehicles.
This opportunity makes TECO2030's Gigafactory in Narvik a strong contender for the upcoming truck conversion market, well ahead of the promised 2030 market entry date, helping to ensure an additional revenue stream for its fuel cell stack production.
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.