3 March 2023
Today's Top Nordic Green News:
- Copenhagen Infrastructure Partners will collaborate with Viviid Renewables to develop renewable energy in India
- Swedish NKT receives record order for submarine cables for offshore wind power in the Netherlands
- Norway and EU to establish a cooperation forum for batteries and metals
- Danish European Energy CEO says proposed wind power tax in Norway makes investments impossible
Copenhagen Infrastructure Partners will collaborate with Viviid Renewables to develop renewable energy in India
Copenhagen Infrastructure Partners (CIP) has partnered with Indian developer Viviid Renewables to develop over 1.8 GW of renewable energy projects in India. The partnership will begin with two onshore wind projects with a combined capacity exceeding 500 MW, with additional projects expected to be developed and constructed through successor CI NMF funds. Viviid will contribute projects from its development pipeline to the partnership, as well as deliver key development activities up to the final investment decision, and provide design, engineering, procurement and construction services. CIP will lead the financing process and offtake sourcing.
Swedish NKT receives record order for submarine cables for offshore wind power in the Netherlands
NKT, a Swedish cable company with a factory in Karlskrona, has received its largest-ever order worth EUR 2 billion for submarine cables for offshore wind power in the Netherlands. The company plans to partially use recycled metal in the conductor and manufacture the cables at its high-voltage factory in Karlskrona, powered by renewable electricity, to reduce carbon dioxide emissions.
Norway and EU to establish a cooperation forum for batteries and metals
Norway and the European Union (EU) have negotiated a non-legally binding agreement that outlines a "strategic partnership on sustainable raw materials and the value chain for batteries". The agreement will not be signed until certain issues are resolved between Norway and the EU. The relationship between Norway and the EU has been strained since the energy crisis and disagreements over oil and gas extraction in the Arctic. The topics covered by the agreement include batteries and metals and raw materials. The agreement will involve regular meetings between Norway and the EU at official and ministerial level to discuss issues surrounding cooperation on battery production and the extraction of rare metals.
The EU wants to stop oil and gas extraction in Arctic regions. Diplomatic sources suggest that the EU has also been irritated that Norway has not been accommodating when it comes to gas prices or using some of the enormous gas revenues to give Europe a helping hand. Moreover, while an agreement on batteries and minerals has been ready for months, it will not be signed until the EU and Norway see eye to eye on their more comprehensive agreement, the Green Industrial Alliance, which has been delayed. Industry Minister Jan Christan Vestre is optimistic that the agreement will be signed in good time before the summer.
Danish European Energy CEO says proposed wind power tax in Norway makes investments impossible
Danish European Energy CEO Knud Erik Andersen says that the Norwegian government's proposed ground rent tax on onshore wind makes investments in Norway almost impossible. The proposed tax rate of 40% on wind power on land with retroactive effect has caused strong reactions from the power industry. Andersen compares the investment climate in Norway to taking savings to a casino, stating that investors need to know the final outcome before starting the investment process, and the proposed tax makes it very difficult. According to Andersen, European Energy was in the process of establishing an office in Norway before the government presented the ground rent tax last year. However, the company chose to drop all plans when the Norwegian government presented the proposal.
Expanding Denmark's electricity grid to accommodate renewable energy will cost over DKK 110 billion
A new analysis from Rambøll shows that it will cost more than DKK 110 billion (EUR 15 billion) to connect renewable energy to the electricity grid in Denmark to accommodate the enormous amounts of green power expected up to 2040. This is an increase of more than DKK 30 billion compared to previous calculations in 2020, but green power is a prerequisite for Denmark to reach the climate goals in 2030 and 2045.
Ikea aims to reduce environmental impact by switching to bio-based glue
Ikea aims to reduce its environmental impact by reducing the use of fossil-based glue in its chipboards. As much as 5% of the company's total climate footprint can be attributed to the use of such glue. By switching to a bio-based alternative, the company hopes to reduce its greenhouse gas emissions from glue by 30% by 2030. The decision is a significant step towards sustainability and may inspire others to follow suit. Ikea's use of glue made from industrial starch from corn in one of its factories in Lithuania is already having a positive effect.
Norwegian hydrogen ferries to revolutionise national ferry connection and boost hydrogen industry
Swedish PowerCell has signed an agreement with Norwegian SEAM for the delivery of hydrogen solutions to two ferries that operate on Norway's longest ferry line, which is run by Torghatten Nord. The deal, worth EUR 19.2 million, is the world's largest hydrogen project in the marine industry and is expected to significantly reduce CO2 emissions. PowerCell will deliver its Marine System 200, which allows the ferries to produce a total of approximately 13 MW of power using green hydrogen gas. The ferries are expected to reduce CO2 emissions by 26,500 tonnes per year, equivalent to the emissions of 13,000 diesel cars per year. Through the hydrogen ferries, Torghatten will become the first major purchaser of hydrogen in Norway, and thus contribute to the further development of the Norwegian hydrogen industry.
Press Release, Skipsrevyen, nforeningen
German Nordex secures 109 MW turbine orders for cold climate variants in Sweden and Finland
German turbine manufacturer Nordex has received two orders from regular customer WPD for a total of 109 MW of turbines with cold climate variants in Sweden and Finland. Both orders come with a 15-year premium service agreement with the option to extend for another five years. Construction of both onshore wind farms is set for spring 2024.
Danish KK Wind Solutions becomes world's largest wind industry converter manufacturer after Vestas acquisition and secures financing from NIB
Danish KK Wind Solutions, owned by AP Møller Holding, has completed its acquisition of Vestas' converter and controls business, making it the world's largest manufacturer of converters for the wind industry. The deal doubles the company's production capacity and expands its partnership with Vestas as the sole supplier of converters to the company. KK Wind Solutions now has 600 employees and three factories in Denmark, the Netherlands and China, respectively, and seven production sites and more than 2,300 employees globally. Moreover, The Nordic Investment Bank (NIB) has signed a seven-year loan agreement with KK Wind Solutions for DKK 500 million to finance the company's growth in providing sustainable energy solutions for the wind turbine industry.
Umeå Municipality receives SEK 11 million for continued climate work in EU NetZeroCities program
The municipality of Umeå in Sweden has been selected as one of 52 pilot cities to participate in the EU Commission's NetZeroCities Pilot Cities Program, and has been awarded SEK 11 million for continued climate work. The pilot cities will test new ways to quickly phase out fossil fuels and switch to a circular economy. The program is a fully funded EU project within the mission for 100 climate-neutral cities in 2030. The project will support the pilot cities' operations with grants from the NetZeroCities project, which manages the mission platform. The program will run from 31 May 2023 to 31 May 2025.
Survey shows highest positivity towards wind power in Denmark
A survey commissioned by Danish technology consultant COWI and conducted by Swedish Novus has shown that 92% of Danes have a positive attitude towards wind power as an energy source, compared to 72% in Sweden and 62% in Norway. The survey also found that only 1% of Danes have a fairly or very negative attitude towards wind power, compared to 17% in Sweden and Norway. Additionally, the percentage of negative views of wind power near the home was 12% in Denmark, compared to 30% in Sweden and 32% in Norway.
Finnish Fortum renews its strategy to speed up the clean energy transition
Fortum, a Finnish energy company, has renewed its strategy to focus on reliable clean energy and industrial carbon dioxide emission reduction in Nordic countries. The company's financial goals have been updated to ensure at least a BBB credit rating, and a net financial debt to EBITDA ratio of 2.0-2.5. Between 2023 and 2025, Fortum aims to invest a maximum of around EUR 1.5 billion in controlled growth in clean energy. In addition, Fortum has set stricter environmental goals, with a commitment to being carbon neutral by 2030, giving up coal by the end of 2027, and setting a target for specific carbon dioxide emissions. Under the updated dividend policy, Fortum will pay out 60-90% of comparable earnings per share as dividend. Its new strategy does not include the group's Russian operations, which the company is trying to divest from.
Statkraft to continue operating Fosen wind power plants despite lacking valid licence
Statkraft, Europe's largest producer of renewable energy, has been found to be operating two out of six wind farms in Trøndelag, Norway without a valid licence, according to the Supreme Court. Activists, including Greta Thunberg, have been protesting the dismantling of the two wind farms this week in Norway (NGN discussed it here). Despite this, the CEO of Statkraft, Christian Rynning-Tønnesen, says that the company will continue to operate the facilities and work with the Ministry of Oil and Energy to find ways to coexist with grazing for reindeer in the area. However, the issue is complicated, and various inputs are being discussed, such as not ploughing construction roads in winter, finding alternative grazing areas and stopping the mills if it's clear in the area, among other measures. Moreover, Statkraft announces record results, with the company earning NOK 14.5 billion in the fourth quarter of last year due to soaring power prices, and proposes to pay out NOK 17.2 billion in dividends for the year.
What we’re reading
- Global CO2 emissions rose less than initially feared in 2022 as clean energy growth offset much of the impact of greater coal and oil use (IEA)
- BP launches €2bn Spanish hydrogen hub (FDI Intelligence)
- EDP makes €20bn renewables push (FDI Intelligence)
- Tesla flags paradigm shift in vehicle manufacturing as it looks to halve cost of EVs (The Driven)
- All-electric Polestar doubles sales, boosts margins as it prepares more EV models (The Driven)
- Wildfires in boreal forests release record levels of carbon, satellite study shows (Financial Times)
- 1PointFive Announces Plan to Develop Huge Carbon Capture and Sequestration Hub in Southeast Texas (MarketScreener)
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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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