7 October 2021

Finnish climate transition threatened by EU nuclear politics

Ursula von der Leyen, the President of the EU Commission met with Finland’s Prime Minister, Sanna Marin (SD) to discuss the classification of nuclear power in the EU Commission’s classification taxonomy. The Marin-led government in Finland has already appealed to the Commission for a green classification on nuclear power, as the nation is dependent on it during the transition period into renewable energy. von der Leyen has promised that the Commission will implement a delegated act regarding nuclear power to update the taxonomy later this year (Iltalehti).

Sweden questions EU energy funds

During Wednesday’s EU ministerial meeting, various proposals were presented by EU leaders, to curb rising energy prices. Among the proposals was the adjustment in EU rules on the energy market to better link the cost of electricity production and the price for consumers, and a coordination among member states in purchasing natural gas. Additionally, Greece proposed for the EU to launch a new fund to subsidise the cost of rising energy prices – which is questioned by Sweden. The Minister for Finance, Magdalena Andersson (S) would rather see funds being relocated from existing energy funds on a national- and EU level, to subsidise the cost of energy prices for vulnerable households (SR). 

EU carbon sink plans opposed by Sweden

A proposal has been presented by the European Commission, suggesting that Sweden should use more natural carbon sinks in trees in an attempt to reduce climate emissions – A proposal strongly opposed by the Swedish government and industries. The proposal says that Sweden should store more carbon dioxide in carbon sinks than other EU member states.

This is a part of the new forestry strategy launched by the EU in which deforestation is criticised. According to Virginius Sinkevicius, The European Commissioner for Environment, Oceans and Fisheries, the underlying basis for criticising Swedish forestry is the fact that Sweden accounts for 27% of deforestation in Europe. However, The Minister for Climate and Environment, Per Bolund (MP), calls the proposal unreasonable as it builds on an assessment by the European Commision that downplays the carbon dioxide storage efficiency of Swedish Forests, to which he plans to present an opposition at the upcoming EU climate meeting (SR, Svt, SR).  

Hitachi AAB awarded contract for large-scale HVDC interconnection in MENA

A consortium led by Hitachi ABB Power Grids has been awarded a major contract from the Saudi Electricity Company (SEC) and the Egyptian Electricity Transmission Company (EETC) to deliver the first large-scale HVDC interconnection in the MENA region. The deliverables are mainly produced in Ludvika and Västerås in Sweden and requires Hitachi ABB Power Grids to employ around 500 employees in Sweden alone. The HVDC link enables Saudi Arabia and Egypt to exchange up to 3,000 MW of electricity along 1,350 km of power lines and a subsea cable, much of which is to be generated from renewable energy sources in the future (Press release, svt).  

Norwegian government to present reduced electricity taxes 

Record high electricity prices in Norway underlie the decision to reduce electricity taxes by 1.5 øre (NOK 0.015), which is projected to result in benefits of over a billion Krone to Norwegian consumers. This is to be presented in the state budget by Jan Tore Sanner (H), Norway’s Minister of Finance, writes DN (DN)

Talks of upscaling: Hybrit underground hydrogen storage facility

Hybrit has commenced construction of the underground hydrogen storage pilot facility in Luleå, Northern Sweden. The Hybrit partners LKAB, SSAB and Vattenfall showed the pilot facility which aims to provide the initiative with the know-how needed for future upscaling plans. The facility will accommodate 100 cubic metres of gas in steel cylinders, and is expected to be finalised in May 2022. Their upscaling plans regard building a larger storage facility by 2030 in order to supply SSAB with fossil-free hydrogen (Svt).  

SENS initiate collaboration with thyssenkrupp Uhde Africa for energy storage

Sustainable Energy Solutions Sweden Holding AB (SENS) has signed a collaboration agreement for a pre-feasibility study with thyssenkrupp Uhde Africa regarding Renewable Underground Pumped Hydroelectric Energy Storage (RUPHES) in South Africa. Following the pre-study, the objective is for the partners to develop a large-scale project for re-using depleted mines as pumped energy storage. South Africa has the right conditions to produce renewable energy from solar- and wind farms, which if complemented with the RUPHES system, enables the country to have a more reliable supply of low-cost and domestically produced electricity from renewable energy sources (Press release).  

Svea Vind Offshore sign agreement for hydrogen production in Gävle 

Svea Vind Offshore, one of the Swedish Energy Agency’s strategy nodes (strategy nodes establish partnerships, synergies and business models across sectors) for Swedish hydrogen, has signed an agreement with the port of Gävle to establish a hydrogen production facility in proximity to the port. The facility is expected to have a production capacity corresponding to the fuel needed in 20-40 hydrogen-fuelled trucks and will primarily accommodate industries in the region and as fuel for the road transport sector. The facility is preliminary planned to start construction phase in 2023 (Q1) (Press release).   

Yara invited to the First Movers Coalition

As reported in NGN yesterday, the First Movers Coalition aims to speed up the development of new technologies that can remove emissions from high-emitting sectors. Yara has received an invitation to join the coalition due to their leading role in the global ammonia market and potential to deliver green ammonia according to Kristin Nordal, the VP of Corporate Communications at Yara International. For Yara, the First Movers Coalition can help define specific and ambitious goals for green ammonia as an alternative in the maritime industry which creates a demand for their business (EoK).  

Denmark expects an expensive winter amidst rising energy prices 

Amidst an upward trend of energy prices, Jyske Bank issued a warning for Denmark to prepare for an expensive “energy-winter” due to the weather dependency of Denmark’s renewable energy sources. Although the International Energy Agency (IEA) denies that the rising energy prices are a result of the green transition, Jyske Bank disagrees and mark this winter as one of the first energy chocks of the transition, alluding to a periodic shortage of wind power and low water reservoirs in Denmark (Ekstra Bladet). 

Samsø awarded UN prize 

Denmark’s municipality of the island of Samsø has been awarded the title “Climate Leader” by the UN, as a result of completely transforming their energy system from fossil fuels to renewable energy. The prize is to be awarded during the COP26 Climate Summit in Glasgow in November and serves as a recognition of their climate efforts for other members to replicate and scale (Samsoe). 

What we’re reading

• Drive for green schemes fuels investment trust funding boom (Financial Times)
• Memo to countries going green: don’t be like the UK (Financial Times)

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