3 November 2022

Norwegian government submits new climate targets: will reduce emissions by 55%

Ahead of the climate summit in Egypt, Norway has submitted enhanced climate targets. It must now reduce greenhouse gas emissions by 55% by 2030, instead of 50%. Prime Minister, Jonas Gahr Støre, stressed that climate change affects the poorest countries and that Norway has the technology, experience and knowledge to contribute more. He lists green industry promotion, offshore wind investments, carbon capture and storage, battery investments and hydrogen as areas where Norway is working to help reduce greenhouse gas emissions. Climate and Environment Minister, Espen Barth Eide, said the target will apply to all sectors. Norway will also co-lead a systemic restructuring of the entire economy in close cooperation with the EU and Iceland to achieve a renewable, circular and sustainable future. Development Minister, Anne Beathe Tvinnereim, believes that the climate summit in Egypt will pay special attention to the challenges facing Africa, a continent that is being hit hard by climate change. Developing countries are looking for help to adapt to climate change, and Norway must provide at least three times as much assistance for this. In Egypt, Norway will, among other things, conclude agreements to support renewable energy, food security and meteorological services so that countries can prepare for climate change.

E24, DN

Record number of Swedish cases submitted to build solar parks

The newspaper ATL has portrayed the interest in solar parks. This year, as of mid-October, the Swedish Counties have received 308 cases. The number of projects is almost twice as many as in all of last year. However, solar cell companies continue to operate their projects, despite the uncertain legal situation and opposition from all sides. The Swedish Board of Agriculture wants to amend the law regarding the use of agricultural land for solar parks. The agency, together with the Swedish Civil Contingencies Agency (MSB), describes solar cells as a threat to the protection of Swedish agriculture. Meanwhile, two legal cases concerning solar cell installations are being heard by the Land and Environment Court. These judgements can guide whether agricultural land should make way for new installations.

TT/Omni

Ørsted raises expectations for 2022

Danish energy company Ørsted has raised its expectations for the year's operating results. This upward revision came as Ørsted announced its third quarter results. The accounts showed an EBITDA of DKK 12.3 billion and a profit of DKK 9.36 billion for the period. As a result, Ørsted has now raised its expectations for the year by DKK 1 billion, with a final result ranging between DKK 21-23 billion. The company said that the DKK 1 billion increase was mainly due to higher earnings from Ørsted's cogeneration plant. It is also due to the good performance of Hornsea 2, Ørsted's divested UK offshore wind farm. Ørsted's CEO Mads Nipper said that despite the very unusual and uncertain times of war, high inflation and rising interest rates, Ørsted continues to expand renewable energy and continues to supply electricity and heat to society. In these unusual times, he is very pleased that they have been able to increase the EBITDA expectations for the year.

Euroinvestor

Finland's power savings run like clockwork

Yesterday, grid company Fingrid announced that electricity consumption in Finland this October was 8% lower than in October last year. The trend is downward; consumption fell by 3% in August and 7% in September, and Tuomas Rauhala, Fingrid's Director, noted that the savings were particularly significant as electricity prices fell in October. The lower the electricity consumption, the lower the risk of power shortages this winter. But the Olkiluoto 3 nuclear reactor is not yet operational, which could lead to power shortages. But if savings continue to go well, things look bright. Also the import of electricity is a factor. In northern Sweden and Norway, where the water and energy situation is good, Finland may be able to get as much power from there as transmission capacity allows.

Yle

Vestas warns energy cost constraints hinder the spread of renewable energy in Europe

European energy ministers agreed in September to limit revenues from wind, solar and nuclear power to USD 180 per MWh as part of their plan to curb the rise in energy prices across Europe caused by high oil prices. Henrik Andersen, CEO of Vestas, warned that the EU's attempts to curb high energy prices are causing a slowdown in the adoption of renewable energy while the region is trying to increase it. In addition, he noted that every indication is that the EU and national governments are finding ways to tax or trying to limit energy prices. It's taking more time, and that's actually slowing down the process and the accrual of costs for projects. Vestas now expects full-year revenues of EUR 14.5 billion to EUR 15.5 billion, down from a previous estimate of EUR 16 billion. Inflation and rising material costs such as steel and copper are making turbine manufacturing more expensive, and the industry is facing supply chain delays related to the pandemic and the conflict in Ukraine.

FT

Rambøll gains new role in Climework’s Iceland CCS programs

Rambøll has gained a new role in Climeworks and Carbfix's large CO2 capture and storage programs, which are facing an upgrade. As a result, the company has been commissioned to conduct due diligence for the next phase of Climeworks' work, which is called Mammoth, and Rambøll must investigate the technical, environmental and commercial conditions associated with the project. The goal of the Mammoth project is to capture 36,000 tons of CO2 per year upon completion of the facility, while the long-term goal is to achieve "megaton" capture capacity and reach gigaton capacity by the 2030s. The purpose of Rambøll's work is to lay the groundwork for potential investors in the Mammoth project. Mammoth will be Climeworks' second facility in Iceland, after the current Orca facility, which has an annual CO2 emission capacity of 4,000 tonnes. Mammoth will be located near the Hellisheiði geothermal power plant, which will provide renewable energy for the capture process. Construction of the facility is expected to take 18 to 24 months.

Energinyheter

AstraZeneca's collaboration to achieve net zero emissions in healthcare

The CEOs of AstraZeneca, GlaxoSmithKline, Merck, Novo Nordisk, Roche, Samsung Bio and Sanofi announced specific joint actions to accelerate the transition to a net-zero emitting healthcare system. The measures they propose must be implemented in three priority areas that have been identified as the drivers of greatest potential impact: supply chain, chain of care and clinical trials. Of these, the first two account for the majority of emissions from the healthcare sector, accounting for an estimated 4-5% of global emissions. To reduce emissions, companies collectively want to:

• Introduce a common supply standard to reduce CO2 emissions across the supply chain and evaluate joint procurement of renewable energy.
• Develop a common standard and tool to calculate emissions in the chain of care for different disease states.
• Agree on common methods for highlighting life-cycle data at the product level, with the aim of improving transparency of the impact of different treatments on emissions.
• Create a common framework for measuring emissions from clinical trials.

The seven pharmaceutical companies behind these measures are members of the SMI Health Systems Working Group, a group of private and public sector leaders working together to achieve net zero emissions in the healthcare sector. The group is led by Pascal Soriot, CEO of AstraZeneca.

Press Release

OX2 presents plan for offshore wind farm off Finnish city Jakobstad

Skyborn Renewables Offshore Finland Oy (formerly Wpd Finland) and OX2, two wind power companies, want to build an offshore wind farm outside the Finnish city of Jakobstad. OX2 has started an environmental impact study and recently presented its plans at an information session, where they were immediately met with opposition and critical questions. OX2 says that its planned offshore wind park Laine would constitute a large park with up to 150 power plants spread over an area of 450 km2. The wind farm would generate as much or more electricity than the Olkiluoto 2 nuclear reactor. The project also includes a hydrogen pipeline from the project area to the mainland.

Energinyheter

Fu-Gen acquires Riberget wind farm from OX2

Fu-Gen has signed an agreement to acquire the Riberget wind farm in the city of Ljusdal from OX2. The wind farm will consist of 11 turbines with a total installed power of 70 MW and will strengthen Fu-Gen's portfolio of built/operated Swedish onshore wind farms with an estimated annual generation capacity of 210 GWh. Construction of the new wind farm will begin in late 2022 and is expected to be completed in the second half of 2024. Once the wind turbines are commissioned, OX2 will be responsible for the technical and commercial management of the wind farm during a 15-year agreement to optimise production and monitor operations. 

Press Release 

TECO 2030, Shell and partners to receive €5 million for HyEkoTank project

TECO 2030 and partners have been invited to participate in the HORIZON EUROPE EUR 5 million grant for the realisation of the hydrogen-powered tanker concept, HyEkoTank. Currently, all beneficiaries have signed the GA Declaration of Honor, indicating their commitment to participate in the project. TECO 2030 will retrofit a 2.4 MW fuel cell system on an 18,600 dwt product tanker for the HyEkoTank project and conduct a demonstration of 4,000 kg of compressed hydrogen storage in 2024. The HyEkoTank hydrogen-powered tanker will demonstrate zero emissions at berth and a 60% reduction in greenhouse gas emissions underway. The project could become a forerunner in the field of maritime shipping and contribute to the achievement of the climate targets set by the EU.

NTB

Equinor acquires Danish solar company BeGreen

Equinor has signed an agreement to acquire BeGreen, a developer of solar energy projects in Northwest Europe. As of today, BeGreen has built a development portfolio of more than 6 GW of early to mid-stage mature projects in Denmark, Sweden and Poland, with an average project size of 300 MW. Pål Eitrheim, Equinor's Executive Vice President of Renewable Energy, said BeGreen represents an important part of the industrial renewable energy position in Europe, which is in line with Equinor’s ambition to be a leading company in the green transformation.

TU

Norway has sold shares in Aker Solutions for NOK 1.2 billion

Norway has reported the sale of more than 30 million shares in Aker Solutions at a price of NOK 39.3 per share. The state has thus sold approximately half of its ownership in Kjell Inge Røkke Petroleum Services for a total of NOK 1.2 billion. Following the bulk sale, the state has promised not to sell further shares for the next three months, also known as a lock-in agreement. After the transaction, the Norwegian state now owns 6.11% of Aker Solutions, making it the second largest shareholder after Røkkes Aker Holdings. 

Aker Solutions has performed well on the stock market this year, rising almost 90% since the beginning of the year. Aker Solutions announced its third quarter figures last week. The company's turnover was NOK 10 billion, compared to NOK 7.3 billion for the same period in 2021. Aker Solutions is now valued at NOK 21.6 billion.

DN

What we're reading

• FFI targets cost competitive green hydrogen by 2030 in new deal with Europe energy giant (RenewEconomy)
• Azerbaijan warns investment needed to ensure jump in EU gas flows (Financial Times)
• The energy crisis gives the US a chance to woo big European companies (Financial Times)
• Europe’s climate warming at twice rate of global average, says report (The Guardian)
• AIIB cautions governments against building new fossil fuel power stations (SenecaESG)
• South Korea and Poland Ink Deal to Build Nuclear Power Plant (SenecaESG)

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