6 December 2021

Denmark’s Finance Act coloured green

The Danish government and its support parties have closed negotiations on the 2022 Finance Act in Denmark – agreeing on a large expansion of green energy. The decision is expected to reduce greenhouse gas emissions by 0.5 Mt in 2025 while simultaneously expanding the share of renewable energy with 2 GW of new offshore wind by 2030. In total, DKK 1.3 billion will be allocated to green investments in offshore wind power, onshore wind power, solar power as well as studies on biomass. The green side of the financial law is being received positively by Danish industry, which has earlier expressed difficulties of achieving Denmark’s ambitious climate targets with little support from Danish climate and energy politics.

Finance Minister Nicolai Wammen said “Denmark has one of the world's most ambitious climate goals, and today's green agreement sets another milestone in Danish climate and energy policy. Firstly, we are ready to adopt completely new technologies such as pyrolysis or capture and storage of biogenic CO2. This gives us reductions of a further 0.5 million. tonnes already in 2025. Secondly, we can set up offshore wind on terms that are not going to cost the state money. This shows that there is an incredible speed in the development in the green area - both technologically and in the market.” (Finansministeriet, Dansk energi, Finans).

Electricity prices continue to break records 

Electricity prices are expected to break records again, as the average price in the south of Sweden is forecasted to increase to SEK 3.01 per kWh with lower-than-usual wind production in southern Sweden – meaning that Sweden will be forced to import electricity from Germany and Poland. Norway is also experiencing shock prices peaking at NOK 4.57 per kWh. But Norway has a new flexibility that Sweden lacks, as it is able to import large volumes of electricity from the United Kingdom via the North Sea Link cable. For the first time, the normal flow direction has reversed, with power flowing to Norway for 11 hours (Omni, Oblad).

Vattenfall CEO: Accelerate wind power, not nuclear power

Last week, Jacob Wallenberg argued that Sweden needed nuclear power. However, Anna Borg, CEO of Vattenfall claims that nuclear power plants are an unlikely soliution to the energy issue. Instead, she believes that it is primarily wind power that will aid in meeting electricity demand the coming 10-15 years – and believes that reducing the veto rights of municipalities and the influence of the Swedish Armed Forces for licencing permits is necessary. However, although new nuclear power plants are not on her agenda, Borg wants to see a decision on end-storage of nuclear waste (Dagens Industri, svt).

The Nordic Circular Summit 2021 concludes

Circular economy and sustainability reporting played a central role during the four days of the Nordic Circular Summit 2021 hosted by Nordic Innovation. The summit shone a spotlight on the importance of collaboration underlying circularity and served as a platform for key players where circular opportunities, ideas and opinions in the Nordic region were shared. Additionally, a deep-dive into issues concerning sustainability reporting and investing which showed how concrete tools and technology are essential to achieving a circular economy – especially the importance of data sharing. 

A complete summary of the Nordic Circular Summit is published by Nordic Innovation (Press release).

Lixea establishes facility in Värmland: Separation of cellulose and lignin from biomass

In 2020, London-based Lixea decided to establish a pilot facility in Bäckhammar, just outside of Kristinehamn. The plant is now under construction. Lixea’s patented process of separating cellulose and lignin from biomass has piqued the interest of the business cluster Paper Province, which it is now a member of. The facility is expected to start production during 2022 and aims to use its process on material that is considered waste according to Jennica Ivarsson, Plant Manager at Lixea (Press release).

SKF allocates EUR 300 million to green investments

SKF has reached a milestone after allocating €300 million to investments aligned with SKF’s framework for green financing. The financing uses SKF’s 10-year green bond, which the company says is an important part of its focus on reducing emissions from its operations as well as increasing investments in green solutions such as renewable energy and electric vehicles. SKF’s framework for green financing was evaluated by an independent actor, the Center for International Climate Research (CICERO) (Press release, Nordiska project).

Equinor invests in UKs Noriker Power

Equinor has entered an agreement to purchase 45% of the British battery storage developer, Noriker Power. The agreement gives Equinor the Right of First Refusal (RFR) on utility scale storage- and stability service projects matured by Noriker. Additionally, it includes an option to acquire the full company at a later stage. Battery storage is imperative for the green transition as the share of irregular power production from renewable sources is increasing, according to Olav Kolbeinstveit, Senior Vice President Renewables, Powers and Markets at Equinor (Dagens Industri). 

What we’re reading

• European auto suppliers warn shift to electric would put 500,000 jobs at risk (Financial Times)

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