7 November 2022
Maersk and Spanish Government to explore large-scale green fuels production
Shipping giant A.P. Moller-Maersk and the Spanish Government have signed a General Protocol for Collaboration to explore the opportunities for large-scale green fuels production in Spain that, if implemented in full, could deliver up to 2 million tonnes of green fuels per year. Last month, the European Parliament voted in favour of a 2% mandate for green shipping fuels by 2030 as part of its adoption of the European Commission’s (EC) FuelEU Maritime proposal. Maersk needs approximately 6 million tonnes of green methanol per year to reach its 2030 milestone fleet emissions target and even larger amounts by 2040 for its fleet to reach net zero. Over the next three years, Maersk will put into operation 19 vessels capable of running on green methanol. The company has already signed seven strategic partnerships to secure the volume needed for these initial vessels.
Svenska Kraftnät regrets turning down energy reserve offer 2019
The Swedish state-owned electricity transmission system operator, Svenska Kraftnät (SVK) turned down buying extra energy in southern Sweden, despite the electricity needed there and available supply. This was in 2019 when there was a need to ensure enough energy whenever consumption peaked and SVK received an offer from Öresundsverket, which SVK rejected as too expensive. However, the need for an energy reserve still exists and Svenska Kraftnät’s Director General, Lotta Medelius-Bredhe, today regrets the decision given the present difficult energy situation in Southern Sweden.
Equinor and Centrica sign partnership agreement for East Yorkshire hydrogen hub
Centrica and Equinor have signed a partnership agreement to explore the development of a low carbon hydrogen production hub in Easington, East Yorkshire, further strengthening the region's growing position as the UK's most important hydrogen superlocation. Under the partnership, the Centrica operating area at Easington could be transformed into a low carbon hydrogen production centre over the next ten years. Centrica and Equinor anticipate that the conversion of the Easington terminal could produce an additional 1GW of low carbon hydrogen, and approximately 200MW of offtaker demand.
Industriklivet's new investment supports the industry's climate transition
The Swedish Government wants to invest in CO2 capture technologies, such as biological CCS, and increase Industriklivet's allocation by SEK 600 million in 2023. It will also provide Industriklivet with an enabling framework of SEK 5.2 billion for the period 2024-2030. The allocation will support projects that lead to permanent negative emissions of greenhouse gases, such as capturing gases from burning biofuels. The decision means that the Swedish Energy Agency, which is responsible for Industriklivet, can provide more support for projects and investments in 2023, thus providing important investments for the transformation of the industry and the development of CCS-related technologies.
Sweden has made significant investments in capturing biogenic CO2
The Swedish Government will continue to invest in biological CCS in the period 2026-2046 through a SEK 36 billion state aid, which will be allocated to participants who can separate and store CO2 at minimal cost. The Government support for bio-CCS will be allocated through a so-called reverse auction, where participants bid on how much CO2 they can separate and store and at what cost. The participant that can deliver bio-CCS at the lowest cost wins the bid and receives the support. The Swedish Geological Survey (SGU) is tasked with investigating suitable sites for CO2 storage. The Energy Agency is the auctioneer and has the right to enter into contracts worth SEK 1.7 billion per year with the participant that wins the reverse auction. The goal is to start the first reverse auction in 2023 and the second auction no later than 2026. During the mandate period, the Government may decide to increase the auction volume further as long as it is cost effective. In addition to investing in bio-CCS, the Government intends to study CCS controls to support the transition of cement production and refineries.
Projects with electric and hydrogen charging infrastructure can apply for EU funds
The European Commission has announced the opportunity to apply for funding for infrastructure projects that contribute to the expansion of infrastructure for alternative fuels and to the phase-out of fossil fuels in the transport sector along the so-called TEN-T Network (Trans-European Transport Network). The Swedish Transport Administration coordinated the application process in Sweden and the Government took a final position on the projects before the applications were submitted to the EU Connecting Europe Fund. The cost of these projects is at least EUR 36 million, of which EUR 12.4 million is for grants. The two current projects are:
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"Electrified Mobility: expanding the Nordic charging network." The project includes the establishment of 342 charging stations in Sweden and Finland, 156 of them in Sweden.
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“The heavy-duty hydrogen corridor in Podunkia." This project seeks co-financing for 6 hydrogen stations and 2 production facilities between Kiruna and Umeå. The target group is heavy transport for companies in the region.
Opinion: “The EU will judge the Tidö Agreement”
The Swedish Tidö Agreement reduces the committed emission reduction obligations to the lowest level of the EU, i.e. 6%. And Sweden is now legally bound to reduce emissions by 55% by 2030. The world is switching to fossil fuel-free, but the Tidö Agreement finds loopholes for Sweden, even if it is impractical, illegal or damaging to Swedish business. Thus, people are now arguing that the EU should actively ask Sweden to submit a new detailed plan by March 2023 to show that it can meet its emissions reduction targets. Sweden's forests and agriculture can contribute significantly to its emissions reduction targets. And with 93% of Swedish property currently free of fossil fuels, Sweden already has a great export opportunity when EU requirements force other European countries to reduce emissions.
COP27
Sweden says no to demands from poor countries
The Swedish Government and the EU are against the establishment of an earmarked fund for climate change compensation, which is now to be discussed at the COP27 climate change conference. Sweden´s Chief Negotiator and Head of Delegation to UNFCCC, Mattias Frumerie, confirms that Sweden has agreed with the EU policy line to argue against establishing such a fund. However, he says that he understands frustration over the EU´s and the US negative reaction to the fund idea. Examples of negative and costly climate change events are many, from the floodings in Pakistan last autumn which left 8 million homeless and the Bangladesh floods, the worst in 20 years. These are what in climate terms are considered as damages and losses. In the lead up to COP27 in Egypt a number of poor developing countries, supported by scientists and civil society, demanded compensations for such devastating climate change events via a new fund. However, Frumerie confirms that during EU discussions on COP27 there was no member state that was willing to support this proposal.
- COP27: 'Climate chaos' warning as UN summit begins (BBC
- COP27 Kicks off with Deal to Discuss Climate Compensation (Reuters)
- 5 tensions that could derail the climate conference (Politico)
- As Cop27 kicks off, where are the coal to clean deals at? (ClimateHome)
What we're reading
- An inconvenient truth: Climate change won't be solved in this desert (Politico)
- The world is missing its lofty climate targets. Time for some realism (The Economist)
- G7 says Russian oil price cap to be ready ‘in the coming weeks’ (Financial Times)
- Sunak claims role as ‘clean energy champion’ on eve of Cop27 (The Guardian)
- German Gov’t, Coastal States, TSOs Firm Up 2030 Commitment to 30 GW of Offshore Wind (OffshoreWind)
- Maersk warns oil groups are holding back clean energy transition (Financial Times)
- UK steel industry warns it needs state aid to survive green transition (Financial Times)
- Google launches ‘FloodHub’, a platform to forecast flood: All details inside (Mint)
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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