6 October 2022
Finnish PM provides update on the energy market, electricity prices and Fortum
The Finnish Prime Minister, Sanna Marin, has submitted to Parliament the Government's answers to the provisional questions on the functioning of the energy market, electricity prices and the Government's Fortum policy. The measures already decided upon include an additional index increase and new electricity subsidies for low-income households. The Government has also decided on a temporary tax reduction on the basis of electricity tariffs, a temporary reduction in VAT on electricity to 10%, a temporary tax exemption for passenger transport, an increase in the travel expenses deduction and tax support for real estate for agricultural production buildings. She concluded that the current crisis was caused by a sharp rise in fossil fuel prices and a reduction in supply.
AP Moller - Maersk continues green transformation with six more large container ships
Maersk has announced that it has ordered six more large ocean-going vessels that can sail on green methanol. The six vessels will be built by Hyundai Heavy Industries (HHI), have a nominal capacity of approximately 17,000 containers, and replace the existing capacity of Maersk's fleet. All six vessels will be delivered in 2025 and sail under the Danish flag. They are all part of Maersk's ongoing fleet renewal programme. With the new order, Maersk has in total ordered 19 vessels with dual-fuel engines able to operate on green methanol. When all 19 vessels are deployed and the older vessels replaced, they will reduce CO2 emissions by approximately 2.3 million tonnes per year.
Expansion of Minesto Tidal Park is on schedule
Marine energy developer Minesto has announced that the development of the world's first tidal kite energy park in Hurst Fjord, Faroe Islands, is progressing efficiently and on schedule. The park has a total planned capacity of approximately 30 MW and includes 24 kite systems with a capacity of 1.2 MW each. The annual power generation capacity of the facility is estimated at 84 GWh, which is equivalent to 20% of the Faroe Islands' energy consumption in 2021. The assessment work carried out covers all aspects of the site development, including environmental impact studies, cable routes and grid connection points. The next focus is on finalising the installation configuration of the first four kites that will form the first 5 MW phase, as well as securing the onshore service installations.
Puro.earth opens consultation for methodology on CO2 storage
Nasdaq’s carbon removals platform Puro.earth has opened a consultation on a methodology to earn carbon credits from accelerating the process of CO2 being stored by rocks, while it also this week announced a new removals insurance partnership.
Fiskars replaces natural gas with electricity and modernises furnaces
Fiskars, a maker of garden tools and other products, had replaced natural gas with new technology and renewable electricity in its furnaces, reducing emissions at the Iittala glass factory in Finland by 74%. Last year, the group invested a total of EUR 33 million worldwide, with the EUR 10 million for the glass factory spread over the period 2023-2026. The Finnish Ministry of Labour and Employment is supporting this investment with EUR 2.87 million within the framework of Finland's recovery and rehabilitation programme.
Graphmatech's metamaterial prevents green hydrogen from becoming a climate bomb
Green hydrogen can reduce dependence on fossil fuels, but if it leaks, the hydrogen gas can become a real climate culprit. However, Uppsala company Graphmatech has found a solution. By modifying the Nobel Prize-winning material graphene, the company has developed a new material that can reduce leaks from pipes and containers by around 40%. Right now, in a pilot phase, Graphmatech is producing a few kilograms a day. But the company is looking at how it can scale up production in response to increased demand, and how much capital it will need. So far, the company has brought in investors such as Almi Greentech, Walerud Ventures and ABB Technology Ventures, and it plans to have a large plant in three to five years.
OX2 invests in more solar energy in Halland
OX2 has initiated the permitting process for another solar project outside of Halmstad in Harlan County. Covering three sub-districts and a total site of approximately 150 hectares, the project is expected to produce approximately 110 GWh of renewable electricity per year when fully developed. The project is part of OX2's expanding investment in large-scale ground-mounted solar energy and is the third project planned for Hallam only. Tenure agreements have been signed with three private landowners, including pastureland, arable land in a watershed protection zone and conventionally farmed land. If the project develops as planned, the plant could be operational by 2025 and provide a significant amount of renewable energy for southern Sweden. OX2 will consult and issue an environmental impact statement this autumn and the completed permit application will be submitted to the County Council in 2023.
PowerCell signs agreement for delivery of fuel cell stacks to ZeroAvia, potentially worth up to SEK 1.5 billion
PowerCell has signed the world's first contract covering the supply of a range of hydrogen-powered fuel cells to the aviation industry. The customer is the zero-emissions airline ZeroAvia, and the order, which could be worth SEK 1.51 billion, is conditional on ZeroAvia receiving the necessary certification, including 5,000 fuel cell stacks, for delivery starting in 2024. Approximately SEK 25 million of the order value will affect revenue in 2022. Once flight certification is completed, PowerCell will supply fuel cells with a total capacity of 0.5 GW, including 300 kW SuperStack modules based on industrial 100 kW fuel cell stacks. As part of the agreement, PowerCell will establish a division in the UK to perform final assembly and technical modifications to ZeroAvia's fuel cell systems and applications.
NOK 35 billion power investments at risk after new Norwegian tax policy
Norwegian power companies are protesting against the new tax regime and investments that could have provided more electricity are now being halted. Kristin Lian, Managing Director of Hafslund Eco Vannkraft, says that with the proposed tax increase companies may not be able to realise new renewable energy projects, which could also lead to higher electricity prices and a bigger energy crisis. However, Professor Stein-Erik Fleten of NTNU's Department of Industrial Economics and Technology Management is sceptical that the power companies will actually stop their projects.
According to data collected by NRK and Energi Norge, these projects are either underway or at risk.
- Lyse Energi - Røldal-Suldal hydroelectric power plant
- Hafslund Eco - ten NOK 10 billion projects in southern Norway
- Agder Energi - pumped hydro power plant in Bykle
- Eviny's five projects involving the expansion of several hydropower plants in Vestland
- Expansion of Mauranger 2 power station in Statkraft
- Sunnhordland Kraftlag's (SKL) Blåfalli Fjellhaugen project.
- Hydro - Illvatn pumped hydro power plant at Lustre in Sogn
- Sognekraft's Feios and Offerdal power plants
- Tafjord Kraft's two projects in Sunnmøre.
Norwegian National Hydrogen Centre established
HYDROGENi, a research centre for environmentally friendly energy (FME) dedicated to research and innovation in hydrogen and ammonia, was officially opened in Oslo on 5 October 2022. The large FME centre HYDROGENi has a budget of approximately NOK 530 million and more than 50 partners from industry and academia. The centre will be managed by SINTEF Energi for 8 years. HYDROGENi aims to establish the largest academic research programme in FME by training 35 PhD/postdoctoral students and more than 100 bachelor and master candidates. In particular, HYDROGENi will work to establish a sustainable hydrogen economy in Norway.
Equinor to build battery storage facility in the UK
Equinor has decided to invest in a 25MW lithium-ion battery storage facility in Dorset, in the south of England. This is Equinor's first commercial battery storage element and construction is due to start in January 2023, with operations expected in 3Q23. In the last 10 months, the company has invested in two battery storage development companies: Noriker Power in the UK, in which Equinor has purchased a 45% stake, and East Point Energy in the US.
Strong winds sees electricity prices plummet and even going negative
Despite great concern over soaring and extremely volatile electricity costs, the prices of electricity in Sweden have plummeted thanks to strong winds, and late in the evening on 5 October and into the early morning on 6 October, some Swedes might even get paid for using electricity. The phenomenon of negative electricity prices is rare, but occurs when the supply exceeds the demand. Between the final hours on 5 October, the electricity prices in all four of Sweden’s electricity regions was at SEK -0.21 per kWh. Negative electricity prices were noted in Sweden for the first time in February 2020, and the most recent time it happened was in July 2022, when the price of electricity in electricity region 4 cost SEK -0.1 per kWh. Meanwhile, electricity was also very cheap in Finland, Norway and Denmark. According to the electricity exchange Nordpool, Finland’s price of electricity on the exchange dropped to around EUR 0.10 per kWh at 8pm on 5 October. In addition, the three price zones in southern Norway fell to an average of NOK 0.23 per kWh throughout the day on 6 October.
Vattenfall is expanding significantly into Esbjerg
Vattenfall's newest international central warehouse, now open in Esbjerg, will ensure that the energy company's offshore wind farms have quick access to major components and cables when necessary. Vattenfall's control and monitoring centre is already located in Esbjerg, from where the company monitors and manages its entire portfolio of wind turbines in all countries/regions. Vattenfall's international central warehouse in Esbjerg is divided into 2,200 m² of indoor space and approximately 10,000 m² of outdoor space. The warehouse will be used for larger major components such as blades, cable reels and generators and generates approximately 50% of its own energy requirements through solar cells on the roof.
Two new wind farms in Finland with an estimated annual production of 320,000 MWh in 2025
Exilion Tuuli Ky, which invests in renewable energy and is owned by Elo, the Finnish state’s pension fund and Veritas, is building two new wind farms in the municipality of Ii in North Ostrobothnia. The wind farms are to be called Isokangas and Palokangas and have a total capacity of 100 MW. 5 wind turbines will be installed at Isokangas and 12 at Palokangas. The plants are expected to produce 320,000 MWh per year, which is equivalent to the annual electricity demand of approximately 130,000 apartment buildings. Construction of the power plants will start in the summer of 2024 and production will begin in early 2025. The total value of the investment is approximately EUR 130 million.
What we're reading
- EU funding disputes over energy spell trouble ahead (Financial Times)
- Charles Michel: The EU needs a genuine energy union now (Financial Times)
- Climate failure costs will surpass economic hit of change, says IMF (Climate Brief)
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.
Powered by Notified