Mundus Nordic Green News – 14 January, 2021

Gothenburg and Volvo collaborate towards climate-neutral Gothenburg

Gothenburg has an ambition that its climate footprint will be close to zero by 2030. With nine years left, a collaboration is beginning that will increase the chances of getting there. A large part of central Gothenburg, designated at the “Green City Zone” will be a test space for new solutions to create a completely climate-neutral and emission-free transport system.

 

The City of Gothenburg is behind the initiative through Business Region Gothenburg, Volvo Cars and RISE (Research Institutes of Sweden). According to Maria Strömberg, Head of Cluster and Innovation at Business Gothenburg Region “we have created a platform for the collaboration to which we invite several actors, both Swedish and international companies, who have innovative solutions and who will collaborate with the city, the research actors and our local business community.

 

Volvo Cars writes in a press release that “Using a real city as a testing ground will enable Volvo to accelerate development of technologies and services in the areas of electrification, shared mobility, autonomous driving, connectivity and safety. As part of the testbed, Volvo plans to run robotaxis operated by its fully-owned mobility provider M, within the zone.

 

Håkan Samuelsson, chief executive of Volvo Cars commented: “Essentially, we initiate a project that intends to limit the number of cars in the city – which is fully in line with our company’s purpose … This is already proven by our investment in the shared mobility service, M, which has developed proprietary AI technology to improve efficiency and utilization. We want to be involved in creating the cities of the future and keep them livable. This initiative gives us an opportunity to do that and take on responsibility in our own hometown at the same time.”

 

Technology is a critical part of the solution. Volvo claims that one car from M replaces the need for 8 privately owned cars in the city. Other technologies to be tested include geo-enabling solutions and services ensuring that cars in the zone operate in electric-only mode and remain within speed limits, as well as traffic infrastructure that can connect to active safety features in cars and share information between road users.

 

The initiative starts in spring 2021 and will gradually scale up going forward.

 

Equinor wins 2.5GW tender in NY. Orsted misses out

Equinor has been selected to supply the state of New York with offshore wind power in one of the largest ever renewable energy allocations in the United States. Together with strategic partner BP, Equinor will deliver a total of 3.3 gigawatts. Renewable Manager Pål Eitrheim described it as “in many ways [this] a breakthrough for us in the American market, a market where we entered early from the beginning. The scale of what we are assigned today, gives us the opportunity to have continuous project activity over the next ten years and build a strong organization in the US.” Eitrheim says that the contract brings the company one step closer to becoming a globally leading player in offshore wind, calling it a big day for the Norwegian oil company.

 

Meanwhile, Denmark’s Orsted, which missed out this time, is competing, alongside Shell and others, in another major tender round for offshore wind in New Jersey, for the right to build up to 2.4 GW of offshore wind in the state. 

 

Ørsted shares tank despite lifting profit guidance

Ørsted announced preliminary operating profit (EBITDA) of DKK 18.0 billion for 2020, well above its latest guidance of DKK 16-17 billion. However, the market was disappointed, and its shares fell 4.9%. The Financial Times was sanguine about the disappointment, noting that “optimists focus on its earnings growth potential and capacity to control financial risk.” The FT says that the company’s pipeline provides clear visibility on profitability and credit rating agency policies have made it easier for companies like Ørsted to hold onto their valuable projects, rather than being forced to divest parts to e.g. oil companies to keep a healthy balance sheet.

 

Sweden’s Industriklivet support program broadened

Sweden’s Industriklivet (Industrial Life) program, has been broadened. It will now be possible to apply for support also for strategically important initiatives around new technology or innovative solutions in industry that significantly contribute to society's climate change. This can, for example, be new solutions in batteries, biofuels, plastic recycling or hydrogen, says Anna Thorsell at the Swedish Energy Agency.

 

FREYR strengthens its management team for growth strategy

FREYR batteries announced the appointment of three new members to the company's management team that will implement FREYR's growth strategy, including the development of over 40 GWh with production capacity for pure battery cells by 2025. The 3 positions are:

1. Jan Arve Haugan, a veteran from the international energy sector and technology-driven business, has been appointed COO and Deputy CEO
2. Hege Marie Norheim, a professional in stakeholder relations and sustainability, previously a senior adviser at the Prime Minister's Office in Norway and State Secretary to the Prime Minister and Minister of Finance, has been appointed Executive Vice President for HR, Sustainability and Communication.
3. Executive Vice President of Sales (not named), an experienced expert in the development and sale of energy storage solutions

 

Powercell signs fuel cell order for wheel loader test

The fuel cell company, Powercell has received an order for an MS-100 fuel cell system from an unnamed European manufacturer of construction machinery. According to Powercell, the customer will use the system to test how a wheel loader can be electrified with the help of fuel cells and hydrogen. 

 

Norway’s climate action plan criticized for lack of ambition

Bellona, an environmental NGO, said “there is a lack of ambitions, ideas and solutions. It takes far more than an increased CO2 tax and some biofuels to restructure the industry to meet the upcoming requirements for zero emissions. Here, the government is failing a construction industry in restructuring.”

 

Christian Eriksen from Bellona told Byggeindustrien, an industry paper, that “The construction industry is one of these, with large and heavy equipment for which completely new solutions must be developed. The government could set targets for zero emissions by 2030 and sub-targets by 2025, take a clear position that zero-emission technologies are the solution, and give public developers the task of testing new technology in all projects from 2022. They could also point to specific challenges that must solved in the market and put new funds on the table for investment support.”

 

Governance of Swedish electricity network needs to “dare to be a visionary”

Four representatives from Sweden’s energy industry sector warn Sweden needs to drastically increase its capacity to produce and distribute electricity. According to the four debaters, it is not unlikely that Sweden’s electricity use will quadruple by 2050, which would require Sweden to increase its domestic production drastically, including massive demand boosts from planned industrial projects suchsuch as LKABs hydrogen steel plant, Hybrit and Northvolt’s battery factory. The four then proceed to list a number of conceivable scenarios where various economic sectors (e.g. airlines) are said to have become entirely, or at least in part, electrified, and where current forecasted production would not meet demands. The four implore decision makers to not be afraid of taking “visionary steps,” and to act “quickly and resolutely” in order to continue to guarantee the grid with “flexibility and robustness.”

 

Finland’s Wärtsilä chosen to deliver Australian 1GW battery vision

Australia’s AGL Energy will partner with battery technology firms Wärtsilä and Fluence to deliver on up to 1,000MW of planned big battery energy storage projects. AGL said that “Wärtsilä and Fluence are both global leaders in energy storage technologies, ensuring we are investing in the highest standards for performance, reliability and safety. We are already well advanced with our planning process and these framework agreements will reduce tender timeframes for individual projects, enabling faster project schedules and commercial operation.

 

Finland’s Ministry of Employment and the Economy proposes measures to address environmental and economic challenges via circular economy program

A working group that prepared the strategic program proposal for the circular economy has presented the goals and means by which the circular economy will be the new foundation of the Finnish economy by 2035. The working group has proposed that the Government set a concrete and ambitious goal for the sustainable use of natural resources.

 

“A new direction - Proposal for a Strategic Program for the Circular Economy” contains recommendations and 41 proposals for action. The program proposal has been prepared by about 250 representatives of government, organizations, industry and research institutes. Krista Mikkonen, Minister of the Environment and Climate commented that “Finland is still in the early stages of a circular economy. Climate policy has seen how quantified targets accelerate and flesh out work. That is why concrete goals are now needed for circular economy work as well. In order to solve the sustainability crisis, Finland needs a new direction, in which the circular economy program gives step signals. To implement them, both the state and municipalities are needed, as well as new types of product design, innovations and co-operation from companies”.

 

Metacon enters a new phase and prepares for a change of CEO

Metacon AB is an international energy technology company that holds a patented technology for cost-effective production of hydrogen from biogas. Ingemar Andersson, Chairman of the Board of Metacon AB said that Metacon’s next phase requires a different management profile to further develop the company to become a leading international group with a focus on hydrogen and its applications”.

 

Quantafuel and Geminor form JV to invest in chemical recycling

Energy company, Quantafuel and recycling player, Geminor are cooperating to take a strategic role in the industry of chemical recycling of plastics in Europe. Geminor Invest AS, holding company and sole owner of Geminor AS, is selling 40% of the shares in Geminor AS to Quantafuel. 

 

The Chairman of the Board of Geminor Invest AS, Arne Haldorsen, believes that the sale of shares is strategically correct and important in order to strengthen the development of the company in both the short and long term. “The international community today has major challenges in waste management, especially when it comes to handling ever-increasing amounts of plastic waste,” he said. The measures that are now being implemented to meet the challenges mean that the waste industry is becoming more industrialized, and new recycling solutions are being built up both nationally and internationally. Geminor wants to be a key player in this industrialization process, something we will achieve with Quantafuel as a partner and co-owner.

 

Since its birth in 2004, Geminor AS has grown to become a significant international recycling player and waste supplier in Europe. The company currently has around 80 employees in offices in 10 countries, delivered close to two million tonnes of various types of waste for recycling in 2020, and has an expected turnover of more than NOK 1.8 billion this year. Quantafuel AS, which is now a partner in Geminor, is a Norwegian technology-driven energy company that develops, designs and operates plants for the production of chemicals based on non-recyclable waste products. Quantafuel currently has an operational production plant for chemical recycling in Skive in Denmark.

 

Vestas cuts 220 positions

Danish wind turbine maker Vestas will cut 220 positions, mainly in Denmark and the United Kingdom, due to the merger with MHI Vestas, which Vestas took over last year. 

 

Danish battery pioneer sold to American energy giant

American Sensata Technologies which already owned 25% of Lithium Balance, has increased its stake to 75%. Lithium Balance says that it is technologically among the world leaders in battery management systems which are critical for lithium-ion-based batteries ensuring correct and safe charging of batteries in electric cars. Lithium Balance will become an integral part of Sensata and will therefore have better access to the major car manufacturers as well as to industries such as mobility and renewable energy where demand for battery technology is growing rapidly during the accelerating transition from fossil fuels to more climate-friendly propulsion.

 

Lithium Balance is also behind Xolta, which provides modular, intelligent energy storage systems for both industrial and private use, and Xolta will also help expand Sensata's customer base.

 

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