A study carried out by the Norwegian research group, SINTEF and the French petroleum institute Ifpen, with Deloitte, and funded by the oil and gas industry, concluded that hydrogen can contribute to eliminating climate emissions in the EU to a significantly greater extent than the EU's forecasts. The study estimated that the demand for hydrogen can grow to over 100 million tonnes by 2050, corresponding to 3,300 TWh or 21 times as much as Norway's total production of electric power today.
According to the study, the most cost-effective solution will be a massive investment in blue hydrogen, where 1,400 million tonnes of CO2 are captured and stored each year. Norway is seen to be in a good position to create a new hydrogen export industry, with its natural gas resources and its focus on CO2 storage. In a scenario where there is a heavier focus on green hydrogen, Sintef and Ifpen estimate that the cost will be NOK 70 billion higher per year. (press release, Europower Energi)
Nel ASA reported revenues of NOK 156.9 million in 1Q21, up 24% from NOK 126.5 million in 1Q20. EBITDA was negative NOK 74.3 million, but the order backlog ended at a record NOK 1085 million, up more than 80%, while the cash balance was NOK 3.25 billion.
Jon André Løkke, CEO said “Nel has a strong financial position and a solid balance sheet to execute on our strategic plans. This allows us to continue to invest in technology and people to strengthen our leadership position in a rapidly growing market, and to be a trusted counterparty as projects are becoming larger and more complex.”
"A key element to deliver on the cost target of USD 1.5/kg is the expansion of the electrolysis production to accommodate large-scale projects by constructing a fully automated manufacturing facility at Herøya, Norway. The construction process is on track, with more than 33,000 manhours completed and with zero HSE incidents. Test production of the first 500 MW production line will commence in the second quarter of 2021, with start of commercial ramp-up in the third quarter 2021."
To say that the result was a disappointment for shareholders is a dramatic understatement. Nel’s result was weighed down by a significant price drop by its holdings in Everfuel, in which Nel is a major shareholder, which made a loss of NOK 580 million, and where Nel took an accounting loss of NOK 466 million. [To put this into context, Everfuel shares have been on a rollercoaster – rising 700% during 2020, before falling by 58%.]
Some analysts are predicting even worse for Nel. Pareto Securities thinks the share will drop to NOK 8, having been as high as NOK 35 this Janaury. Today’s loss of 16%, from NOK 24 to NOK 20 means that Nel lost NOK 6 billion in value during the day. (exchange announcement, Dagens Naeringsliv)
Aker Horizons ASA announced that it had initiated a process to transfer to Oslo Børs from Euronext Growth, expecting that the listing would be completed during 2Q21. Aker Horizons listed on Euronext Growth as recently as 1 February 2021. (Exchange announcement)
Aker Carbon Capture also reported that it made a loss of NOK 23.5 million in the first quarter. Last year the company made a loss of NOK 44.5 million, but it had NOK 484 million in cash at the end of the quarter. However, it positions itself as a growth play, with a healthy horizon of projects, including Letters of Intent with heavyweights such as Orsted and Microsoft (E24)
On an otherwise uneventful day, cleantech shares in Norway experienced a bloodbath. Shares in the portfolio of 5 Aker "baby" companies lost between 6% and 9% of their value. But, hydrogen company Nel came out the worst, with a fall of almost 16% after presenting quarterly figures far worse than analysts had expected.
Vestas shares were also down by a hefty 6% in Denmark. (DN Investor, Euroinvestor)
Formica Capital has bought a majority stake in Finnish Rototec, with the aim to continue rapid expansion. Rototec is a market leader in the Nordic region in geoenergy solutions, including drilling holes for rock heat pump installations for medium-sized and larger properties. The company has, among other things, Europe's largest fleet of drilling rigs for geoenergy in Finland, Sweden and Norway. It has about 100 employees and had a turnover of the equivalent of just over SEK 500 million, last year. The purchase price is secret, but could be around SEK 500 million. (Dagens Industri)
Arla, the Danish/Swedish milk cooperative, and its members have created a circular system where farmers can produce and sell renewable energy directly to Arla via certificates. The green electricity must reduce Arla's overall CO2 emissions, ensure farmers a better price for their electricity and increase the circular economy in the cooperative. Circularity within its own value chain is an initiative that Arla's Chairman of the Board Jan Toft Nørgaard welcomes: "With this opportunity, the green energy that our co-operatives produce can be counted as part of our joint initiatives to make dairy products more sustainable. The full profit for the GOs [certificates], which we ensure with this initiative goes to the farmers, bears no additional costs for the cooperative and at the same time make a positive contribution to the business case of those Arla farmers who are considering investing in renewable energy." (press release)
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 clip the stories of most relevance to international businesspeople and policy experts from the flow of news. We supplement these with our own opinion pieces and commentary, in English.