7 June 2021

Government credit guarantees for green investments in Sweden

Sweden’s Government has decided to provide credit guarantees for green investments. Via the green credit guarantees, the state can promote large industrial investments that contribute to achieving the goals of the environmental goals system and the climate policy framework. The credit guarantees can be issued for industrial investments where the capital amount for the guaranteed loan amounts to at least SEK 500 million and for a maximum term of 15 years. The companies' applications are tested on the basis of technology-neutral criteria and the guarantee may cover a maximum of 80 percent of the guaranteed loan.

The credit guarantees were announced in the Budget Bill for 2021 and the regulation enters into force on 22 June 2021. The credit guarantees have been designed in accordance with EU rules on state aid. The news was announced by the Minister of Financial Markets Åsa Lindhagen at a press conference with the Minister of Trade and Industry Ibrahim Baylan. The ministers stated that many companies have shown interest in this type of credit guarantee, which is also intended to ensure Swedish competitiveness in the future. The minister's said that "Because the state is part of the risk, it will be easier for companies to borrow,” adding that it is not least about opportunities for investments in such things as the iron and steel industry to make these types of industries fossil-free. (press release, SvD Näringsliv)

Green Hydrogen Systems to list on Copenhagen Stock Exchange

Green Hydrogen Systems, which produces electrolysis plants for the production of green hydrogen based on renewable energy, published its prospectus for the company's IPO, after the company announced an intention to list a few weeks ago.

After the listing, the company's market value is expected to be around DKK 3 billion, a value which would imply explosive growth. In 2020 the company had a turnover of DKK 9.4 million. and an operating loss (EBIT) of DKK 72.7 million. The company's financial target for 2025 is a turnover of more than DKK 1 billion. and a gross margin of approximately 25%, as well as a high single-digit EBITDA margin.

Management and board members have committed not to sell shares for 360 days, and a number of core investors have pledged to buy new shares at the offer price for a total of DKK 570 million. (Euroinvestor)

Wind power technology company Hexicon to list on Nasdaq First North

Hexicon, which develops floating wind farms and has its own technology for floating platforms for twinned turbines, will list on Nasdaq First North. In connection with the listing, the company is also issuing new shares valued at SEK 300 million, capital that will be used to create further growth in the future. The issue is aimed at both institutions and Swedish private investors. (Affärsvärlden)

Preem to invest in biofuels

Board of Swedish independent refiner, Preem, has agreed to invest to diversify its’ fuel mix, by mixing in more fossil-free ingredients in their vehicle fuels. The project could cost SEK 3bn and lead to the revamping of the refineries in Gothenburg and Lysekil in order to raise fossil-free content. One of the sources of fossil-free fuels include various tree oils. Last year the company withdrew plans for a much larger expansion of its refineries after protests at the amount of CO2 the project would lock in. (Sveriges Radio)

Fortum strengthens its position as Russia's largest producer of wind power

In line with its strategy, Fortum will increase its renewable energy production in Russia. Fortum's and partner Rusnano's wind power investment fund has made an investment decision to build 236.6 MW of wind farms in the Samara region of Russia. (press release)

Scatec enters the Indian market

Hot on the heels of the announcement of its major investment in South Africa, Scatec has now entered into a partnership with ACME, a leading solar developer in India, to realize a 900 MW photovoltaic plant in the state of Rajasthan, India. The project has a 25-year PPA with Solar Energy Corporation of India secured in a tender in 2018. (Zephyrnet)

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