8 March 2023
Today's Top Nordic Green News:
- EU judgement strikes against Swedish biogas users
- Swedish Doconomy buys Dreams Technology for SEK 420 million to strengthen its climate-smart financial services
- Powercell's shares surge almost 9% after historic hydrogen order for Norwegian ships
- Koncentra Group acquires German KS Large Bore Pistons, expanding its market reach and commitment to sustainable technology
EU judgement strikes against Swedish biogas users
Hauliers and others who use biogas are at risk of being hit by a tax shock since the EU Court rejected Sweden's tax exemption for biogas. The verdict came in December and has now been put into effect. All deductions and refunds will be stopped from Tuesday says the Swedish Tax Agency (Sw. Skatteverket). Possibly, they will also be required to pay back SEK 3 billion that was paid in support from 2020. Sales manager Foed Meliane at Widrikssons Logistik believes that this will have fatal consequences for many haulage companies.
Swedish Doconomy buys Dreams Technology for SEK 420 million to strengthen its climate-smart financial services
Swedish climate fintech Doconomy has acquired banking platform Dreams Technology for SEK 420 million, according to documents produced by Di. Doconomy, whose main service enables users to follow the CO2 impact of their purchases in various categories, hopes to use Dreams' technology platform to expand its offerings to the banking and finance sectors. The merged company is valued at just under SEK 1.5 billion, and Doconomy CEO Mathias Wikström said the deal was the "world's largest climate fintech deal".
Powercell's shares surge almost 9% after historic hydrogen order for Norwegian ships
Swedish hydrogen company Powercell's shares surged by up to 9% after the firm won an order on two ships - its largest ever order for hydrogen solutions (see previous coverage here). The value of the order from Norwegian company Seam was SEK 214 million, and delivery is scheduled for 4Q24.
Powercell CEO Richard Berkling said the order would be a breakthrough for the company and the industry as a whole, and it was significant that the order came from commercial players. He also noted that the marine industry will be included in the EU's emissions trading, which will increase the costs for the industry and accelerate the use of greener fuels in the shipping sector.
Separately, Powercell signed a large agreement with the British aircraft developer Zeroavia in 2022, which focuses on hydrogen-electric solutions. With these recent developments, Berkling believes that Powercell is well-positioned for a market that is gaining momentum. "Powercell is going from being an exciting tech company that had a small hidden role in Gothenburg to being a commercially world-leading company," he said.
Koncentra Group acquires German KS Large Bore Pistons, expanding its market reach and commitment to sustainable technology
KS Large Bore Pistons produces pistons for large engines in various applications, including ships, power plants, and construction machinery. The company's pistons are approved by major engine manufacturers and are designed to be compatible with sustainable fuels like hydrogen, synthetic methanol and ammonia.
The acquisition of KS Large Bore Pistons by Koncentra Group, a Swedish private equity player, is expected to increase the group's turnover by 50%. KS operates production facilities in Europe, North America and Asia, which allows for local supply chains and high delivery reliability. KS Large Bore Pistons' innovative modular system allows for quick and cost-effective adaptation to new fuels, making it a key player in the development of sustainable propulsion for ships. Additionally, pistons are critical components in facilities that stabilise voltage in power grids, which is increasingly important as renewable energy sources become more prevalent.
HOFOR and Ørsted reported for marketing biomass as sustainable in Denmark
The Danish utility company, HOFOR, and renewable energy company, Ørsted, have been reported to the Danish Consumer Ombudsman for marketing biomass as sustainable. The report claims that burning biomass releases more carbon dioxide per unit of energy produced than burning fossil fuels, and that the companies are therefore making false claims about the sustainability of their energy production. HOFOR and Ørsted have defended the use of biomass, stating that it can be sustainable when produced responsibly and that it is an important part of the transition to renewable energy.
Swedish Ellevio to launch Sweden's largest grid battery to facilitate renewable energy integration
Sweden’s Ellevio Energy Solutions plans Sweden's largest grid battery to facilitate more renewable energy in the electricity system and balance the grid. The company has signed an agreement for new facilities in western Sweden, doubling installed battery capacity in Sweden. The investment program is implemented in stages, with the first phase starting in spring 2023, including two batteries of 15 MW each, in Kungsbacka and Lindome, followed by another energy storage of 40 MW in central Sweden.
Metacon's green hydrogen technology supports expansion of off-grid, sustainable EV charging infrastructure
Swiss company WattAnyWhere has ordered its second reforming system from Helbio, a subsidiary of Swedish Metacon, for the on-site production of green hydrogen from ethanol without connection to the electricity grid. The electricity produced will be used to charge electric cars at charging stations. Metacon's technology in green hydrogen is seen as one of the most important future options for the transportation market, while the market for battery electric vehicles (BEVs) has already grown to take a significant position in the automotive industry. WattAnyWhere's solution offers an alternative and complementary way to create rapid charging of electric vehicles without the need for grid construction or upgrades to electrical infrastructure, using existing renewable fuels such as ethanol.
Swedish charging app Northe expands to business customers and raises SEK 20 million
Swedish app Northe, which allows EV users to find charging stations, calculate prices, and pay for charging, is expanding its customer base to include business users. The company is currently testing a tray that can be automatically connected to all charging posts integrated into Northe's system for faster access to charging stations. Northe has received SEK 20 million in new capital to continue its expansion in existing markets in Sweden and neighbouring countries. The company has also collaborated with Avis, Aimo Share, BMW, and Leaseplan to offer simple solutions for companies that convert their vehicle fleet to plug-in trucks.
Cementa and OX2 collaborate on wind power and hydrogen project in Sweden
Swedish Cementa and OX2 are collaborating on the Pleione energy park project in the sea off the coast of Gotland, Sweden. The project will involve up to 256 wind turbines that will generate electricity and produce hydrogen. The Pleione project is expected to provide affordable electricity and contribute to a necessary shift towards sustainable energy. The project is considered an important step in achieving Sweden's renewable energy goals.
Icelandair signs letter of intent for 45,000 tonnes of sustainable jet fuel from Icelandic company IdunnH2
Icelandair has signed a letter of intent with Icelandic hydrogen company IdunnH2 for the supply of 45,000 tonnes of sustainable aviation fuel from 2028 onwards. The use of sustainable aviation fuel will contribute to a ten percent reduction in Icelandair's annual carbon emissions and will be a crucial part of the airline's work towards sustainability. Sustainable aviation fuel is an umbrella term for several types of biofuel and low-carbon fuel that can be mixed with regular aviation fuel. Most sustainable aviation fuel today comes from bio-based resources, while the synthetic types, e-fuel, are produced from green hydrogen and recycled CO2.
SeaTwirl: 2022 annual report
SeaTwirl, a Swedish company that develops and commercialises vertical axis wind turbines, released its annual report for 2022. During the fourth quarter, the company received funding from the Swedish Energy Agency for its S2x project, appointed Johan Sandberg as its new CEO, and carried out a preferential issue of units. In January, the company received funding of approximately SEK 64.5 million from a rights issue. The company's financial results for the period showed negative net sales and operating profit, primarily due to costs for development and production. SeaTwirl’s CEO, Peter Laurits, expressed his pride in the successful rights issue and noted the company's intention to focus on developing the next generation of floating vertical wind turbines with the funding raised.
Swedbank publishes first sustainable bond impact report
Swedbank has released its first Sustainable Bond Impact Report, which includes impact reporting for both green and social assets registered in the Sustainable Asset Register. The register had SEK 59.3 billion in assets at the end of 2022, a 33% increase from the previous year. Swedbank became the first major Nordic bank to add categories for social assets to its sustainable funding framework in 2022. The report includes impact metrics for the bank’s green assets and introduces an allocation report for the newly inducted social assets. Swedbank has only issued green bonds to date, but plans to explore opportunities in social and sustainability bonds. The criteria for green assets have been updated in line with market practices and the EU Taxonomy.
What we’re reading
- Biden climate law will stumble without permitting reform, industry warns (Reuters)
- UK Grid Uses Back-Up Coal for First Time as Cold Snap Hits (Bloomberg)
- VW pauses on Europe battery plants, awaiting EU response to U.S. Inflation Reduction Act (Automotive News Europe)
- Brussels pushes for EU energy cuts and long-term business contracts (Financial Times, see also Reuters below)
- Draft EU plan for market reform calls for more fixed-price electricity contracts, less market intervention (Reuters)
The EU wants to expand the use of contracts for difference, a draft electricity market reform proposal seen by Reuters showed, to shield European consumers from big price swings. The draft of the proposal due to be published on March 16, steered clear of the deep redesign of the electricity market that some member states have called for, suggesting instead limited changes to nudge countries towards more predictable, fixed-price power contracts. The draft said EU countries should also make it easier for power buyers to sign PPAs and governments should also make sure consumers have access to fixed-price electricity contracts.
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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