30 June 2023
Today's Top Nordic Green News:
- Norway announces its answer to America’s Inflation Reduction Act
- Nordics top WEF leaderboard for Energy Transition Index
- Yara to invest in green ammonia plants in the US due to subsidies
- Northvolt close to inking factory deal in Canada
Dear Readers, Nordic Green News goes on holiday from today. Looking forward to seeing you again refreshed and tanned in August. Happy holidays. Mundus
Norway announces its answer to America’s Inflation Reduction Act
Norway’s Minister of Trade and Industry, Jan Christian Vestre, has announced new measures to support domestic green industry, in response to the billion-dollar Inflation Reduction Act introduced in the United States. Norway plans to provide one billion kroner in innovation grants for larger battery projects and market-related loans for early-stage green projects. Today, Vestre emphasised that Norway's approach focuses on expertise, technology, innovation, quality, and productivity rather than competition for subsidies. Vestre did not specify which companies would be eligible for the innovation grants. Some business leaders have expressed concern that Norway's efforts are insufficient compared to the generous subsidies offered by the US. The government intends to update and strengthen its roadmap for the green transition, with particular attention to manufacturing and solar industry initiatives. Further details are expected in the central government’s budget, to be released in Autumn this year.
Nordics top WEF leaderboard for Energy Transition Index
The WEF has released a report presenting the green transition as evolving amid a "polycrisis", with countries reallocating resources to address energy needs in light of aggravating circumstances arising from impacts of the pandemic, the Russia-Ukraine conflict, and high inflation on global energy transition efforts. The Energy Transition Index (ETI) has been revised to incorporate a wider approach that balances equity, security, and sustainability while assessing transition readiness. Nordic countries continue to lead in both system performance and transition readiness. China has made significant progress in transition readiness, gaining 43% in the past decade. However, global progress falls short, with only India and Singapore advancing across all aspects of energy system performance. Challenges to equity and inclusiveness, along with a shift toward emerging economies, highlight the need for urgent action and a resilient transition.
Northvolt close to inking factory deal in Canada
Battery manufacturer Northvolt is rumoured to be nearing a deal to build a battery factory in Canada. The factory will manufacture batteries for electric vehicles and will be based near Montreal, although the Northvolt Spokesperson, Anders Thor, said that the company is still prospecting areas to expand in North America and a final investment decision is yet to be taken. The deal is expected to be worth in the region of CAD 7 billion (SEK 57 billion) and sources indicate that both Canadian and Quebecian authorities are preparing to provide financial backing for the project.
Kempower to open a new factory in Lahti
Kempower, a manufacturer of fast-charging stations for electric vehicles, has announced the opening of a new production facility in Lahti. The facility will be gradually opened throughout the coming year. The company plans to hire approximately 200 new employees for the plant between 2024 and 2025. The new facility will include production, product development, and office spaces, and it will double Kempower's production capacity in Europe. In addition, the company had previously announced the establishment of a production plant in North Carolina, United States, by the end of the year.
Nel Hydrogen secures large order for hydrogen fueling stations in California
Nel Hydrogen, a subsidiary of Nel ASA, has received a firm purchase order from an undisclosed US energy company for 16 hydrogen fueling stations to be deployed in California. The total value of the purchase order is approximately USD 24 million, including installation assistance, commissioning services, and service and maintenance agreements. The CEO of Nel ASA, Håkon Volldal, considers this contract a significant commitment to hydrogen and a game changer for their Fueling division. The first fueling equipment is expected to be delivered in Q4 2023, and Nel has also entered into a framework agreement for potential future orders.
Finland's largest heat storage facility expanded
Finland's largest heat storage facility in Vaskiluoto, Vaasa, will be expanded by about 3 GWh this year, with the addition of two new electric boilers. The expansion aims to increase flexibility in the energy system and enhance energy self-sufficiency. The facility will benefit from renewable energy sources such as solar and wind power during times of surplus electricity production, ensuring electricity adequacy is not affected. The expansion received nearly €1 million in energy efficiency subsidies from the Ministry of Economic Affairs and Employment. Additionally, Finland has witnessed a reduction in energy consumption, particularly in fossil fuels and peat, with a nearly 10% increase in renewable energy usage and a decrease in carbon dioxide emissions.
Paulig strengthens its sustainability strategy with a focus on biodiversity
Finnish food and beverage company Paulig has updated its sustainability strategy to include nature conservation as a key focus area. The company aims to protect biodiversity by setting science-based targets and working with partners and suppliers to prevent biodiversity loss in its value chain. Paulig is particularly focused on understanding the impact of its product categories, such as coffee, wheat, and maize, on both climate and biodiversity. The company already collaborates on initiatives such as sustainable farming, regenerative agriculture, and circular economy practices. Paulig has made progress in reducing greenhouse gas emissions and aims to further integrate sustainability into its operations.
SKF signs virtual power purchase agreement with Enel
Swedish bearing manufacturer SKF has entered into a 15-year virtual power purchase agreement (VPPA) with Italian company Enel. The agreement aims to acquire guarantees of origin for one third of SKF's electricity consumption in Europe for 2022. By supporting the development of renewable energy, the power purchase is expected to reduce greenhouse gas emissions. This aligns with SKF's sustainability goals and commitment to the RE100 program, which is designed to achieve 100% renewable electricity by 2030, backed up by an allocation of SEK 3 billion for decarbonisation activities between 2023 and 2028.
OX2 and Ingka Investments sign conditional agreement with Hitachi Energy for offshore wind power
OX2 and Ingka Investments have signed a conditional agreement with Hitachi Energy for the supply of high-voltage equipment and systems for two offshore wind farms in Sweden. The agreement is contingent upon obtaining all necessary permits for the Galene and Triton wind farms. Hitachi Energy will provide equipment, systems, and power quality solutions for onshore and offshore substations, enabling the connection of wind power to the Swedish grid. OX2 and Ingka Investments are developing three offshore wind farms in total, with the potential to generate up to 30 TWh of electricity. The final approval for construction lies with the Swedish Government.
World’s largest phosphate rock deposit discovered in Norway
A massive deposit of high-grade phosphate rock, considered the world's largest, has been discovered in Norway. The deposit is estimated to contain at least 70 bln tonnes, enough to meet the global demand for fertilisers, solar panels, and electric car batteries for the next century. The majority of mined phosphate rock is used in the production of phosphorous for the fertiliser industry. Other applications include the manufacturing of solar panels, lithium-iron-phosphate batteries for EVs, semiconductors, and computer chips. The European Commission described the discovery as "great news" that will contribute to the goals of the Critical Raw Material Act. Norge Mining, the company behind the discovery, anticipates the phosphorous supply will be significant to the West, providing autonomy. With global high-grade phosphate rock reserves depleting and the majority of suppliers located outside of Europe, the discovery comes at a critical time.
Cinis Fertilizer secures sodium sulphate supply from BASF
Cinis Fertilizer has entered into a long-term agreement with BASF for the supply of sodium sulphate. The agreement will support Cinis Fertilizer’s future growth and the production of environmentally friendly mineral fertilisers. Cinis Fertilizer aims to establish four plants by 2028, and the agreement with BASF ensures a sufficient supply of sodium sulphate. The company views the agreement as an important step towards a circular economy that reduces greenhouse gas emissions and enables the production of climate-friendly fertilisers.
Pori to become a hub for offshore wind power in the Gulf of Bothnia
The City of Pori in Finland is partnering with leading companies to establish an international hub for offshore wind power expertise and operations. The initiative, led by municipally owned company Suisto Kiinteistöt, aims to secure a significant share of investments in offshore wind farms in the Gulf of Bothnia. The 50-hectare competence cluster in the Port of Pori will initially focus on pre-installation services, assembly, and storage of offshore wind turbines. The project has received support from the government and is expected to attract international offshore technology and service providers. The business model and financing structure for the project will be determined in the coming months.
Authorities issue statement on EIA program for Lehmikeida wind power project
Finland’s Centre for Economic Development, Transport and the Environment (ELY Centre), responsible for implementing central government policy, has issued a statement regarding the environmental impact assessment (EIA) program for the Lehmikeida wind power project in Finland’s Ostrobothnia counties. The project, proposed by CPC Finland Oy, involves the construction of up to 15 wind turbines in a forestry area of 880 hectares. The EIA will assess the potential impacts on the landscape, natural environment, bird population, and buildings. The project also includes plans for electricity transmission to the national grid via a new overhead line and the possibility of sharing a cable route with another nearby project. The ELY Centre emphasises the need to consider interactions with other projects and feedback from the consultation process in the further assessment procedure.
Better Energy secures loan from AP Pension to finance solar parks in Poland
Better Energy has secured a loan of €65 million from AP Pension to finance five solar parks in Poland. The loan agreement enables Better Energy to develop solar projects with a total capacity of 237 MW, supplying electricity to approximately 120,000 Polish households. AP Pension sees the investment as an opportunity to diversify its portfolio and contribute to the green transition. The loan aligns with AP Pension's goal of having 18% of its total investments dedicated to green assets by 2025 and 25% by 2030. Better Energy applauds AP Pension's commitment to renewable energy projects.
Defence Forces halt Korpisenkangas wind power project
The development of the Korpisenkangas wind power project in Leppävirta and Joroinen has been halted due to opposition from the Finnish Defence Forces. Metsähallitus had planned for the construction of 10-24 wind turbines in the area, with initial approval from both municipalities. However, further investigations requested by the Defence Forces led to their opposition to the project. Metsähallitus, considering national defense priorities, has decided to suspend the project for the time being.
Yara looks to invest in green ammonia plants in the US due to subsidies
BASF and Yara Clean Ammonia are teaming up for a joint study to explore the construction of a large-scale, low-carbon blue ammonia production facility in the US Gulf Coast region. The facility, with a planned capacity of 1.2 to 1.4 Mt/yr, will cater to the rising global demand for low-carbon ammonia. The proposed project aims to capture about 95% of the CO2 produced during the manufacturing process, enabling the delivery of clean ammonia with a substantially reduced carbon footprint. For BASF, this facility will help meet the company's demand for low-carbon ammonia and decrease the carbon footprint of its ammonia-based products. Yara's CEO, Svein Tore Holsether, has highlighted the incentives and support for decarbonisation in the US compared to Europe's focus on burdens and taxes.The partners aim to finish the feasibility study on this project by the end of 2023. Both BASF and Yara have committed to significant reductions in their CO2 emissions by 2030, with long-term goals to achieve net zero emissions by 2050.
What we’re reading
- Climate nears point of no return as land, sea temperatures break records, experts say (Reuters)
- EU to set weak rules on soil degradation (Financial Times)
- Von der Leyen at odds with her party over green rules (Financial Times)
Ursula von der Leyen, the President of the European Commission, has distanced herself from a statement by her own political group, the European People's Party (EPP), calling for a "moratorium" on further green regulation. The EPP leaders' statement cited strains on European industry due to inflation and the war in Ukraine as reasons for the regulatory pause. However, von der Leyen's spokesperson clarified that she had not signed the statement and affirmed her commitment to the bloc's environmental agenda. The EPP's stance on halting new green regulations highlights a growing discontent within the party and comes at a crucial time for von der Leyen's political career as she is seen as a likely contender as the next Commission President.
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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