2020-10-16 11:28News round-up

Mundus Nordic Green News – 16 October, 2020

Mundus Nordic Green News

Sweden to accelerate electrification of transport sector, Government announces new commission

According to a press release from the Government, an electrification commission has been appointed with the task of accelerating the electrification of the entire transport sector in order to reduce carbon emissions. The commission will be led by the Minister for Infrastructure, Tomas Eneroth (S), and will consist of representatives from both governmental authorities and from the transport industry.

 

The Commission's tasks will include mapping and identifying development areas for how electrification can be accelerated, to identify how to speed up the transition to electric aircraft, and to investigate the need for funding to develop an action plan for the electrification of the busiest roads. The Swedish Transport Administration will also be  commissioned to develop a plan for an expansion of electric roads. By 2035, 3,000 kilometres of Swedish roads are aimed to be electrified.

 

The Commission will, among other things, shed light on financing issues, possible business models and how, if necessary, electricity can be quickly drawn to the electric road and charging infrastructure for fast charging. The Commission will also examine how hydrogen can contribute to an electrification of the transport sector and what effects the electrification of the transport sector has on the electricity supply. An office for the Electrification Commission shall be established in the Government Offices. The Commission's mandate runs until 31 December 2022.

 

The trade association Transportföretagen thinks it's good that the Government is finally getting started, but believes it to be a little late. “But better late than never, the decision to appoint this commission was made already last year,” says Marcus Dahlsten, CEO of Transportföretagen. Time is of the essence if the Government's goal to reduce emissions in the transport sector by 70% by 2030 is to be reached, claims Dahlsten.

 

Scatec Solar acquires SN Power, forms world leader in renewable energy

Scatec Solar is expanding its solar power plants worldwide and has become a favorite in the stock market. The share has risen 76% so far this year. The company now announces that it has signed a binding agreement to buy all the shares in SN Power from state-owned Norfund for USD 1.166 billion, corresponding to NOK 10.9 billion. As a result of the acquisition, Scatec Solar will simplify its name to Scatec, as it becomes a broader energy company through SNs hydropower portfolio. Meanwhile, Norfund is releasing capital that will again be invested where it is needed to fight poverty and avoid climate emissions.

 

The acquisition is financed through a combination of available cash from the balance sheet of Scatec Solar, a seller credit of USD 200 million, a term loan of USD 150 million and USD 700 million in acquisition financing from Nordea, DNB, BNP Paribas and Swedbank.

 

SN Power was established in 2013 by Statkraft and Norfund. SInce a restructuring in 2017 the company has been wholly owned by Norfund, the Norwegian government’s fund for business activities in developing countries. SN Power invests in clean, renewable energy on a commercial basis in emerging markets. The company's purpose is to acquire, develop, construct and operate hydropower plants in developing countries in Asia, Africa and Latin America. The merged company will have approximately 450 employees, power production in 14 countries and a total capacity of 3.3 gigawatts (GW) in production and under development.

 

Finland tells UN it aims to reach carbon neutrality by 2035

Finland has communicated its long-term low greenhouse gas (GHG) emission development strategy (LEDS) to the UNFCCC. Finland’s LEDS charts scenarios and impact assessments to achieve its 2035 carbon neutrality target and reviews longer-term emissions reduction and removal opportunities by 2050. A ‘Continuous Growth’ scenario achieves an 87.5% reduction in GHG emissions by 2050 compared to 1990 levels. The corresponding target under the ‘Savings’ scenario achieves 90% GHG emission reductions. Both achieve carbon neutrality in 2035 and exclude the land-use sector from calculations. Neither scenario sets carbon-negative targets beyond 2035 rather they allow this level “to be determined by the size of the net carbon sink of the land use sector.”

 

Danish consortium led by MAN Energy Solutions will develop an ammonia engine for ships

Denmark’s Innovation Fund announced that it will invest in the establishment of a consortium to develop a two-stroke ammonia engine for the shipping industry. The purpose is to design and demonstrate a complete ship propulsion system which will pave the way for the first commercial order for a ship with propulsion based on ammonia. The consortium will be led by the engine developer MAN Energy Solutions and also consists of the Danish company Eltronic FuelTech which supplies fuel systems the Technical University of Denmark (DTU) and one of the world's leading classification societies DNV GL. The engine is scheduled to be ready in 2024.

 

Biokraft to expand production at world's largest liquid biogas factory

Norway’s Biokraft AS, announced today that it had chosen Andion of Canada as a key contractor for the construction of the Skogn II LBG (liquid biogas) production facility. The Skogn II LBG production facility will expand Biokraft's LBG production capacity at Skogn in Trøndelag, already the world's largest LBG production facility, producing 10,000 tonnes of green fuel per year.

 

 


About Mundus 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 clip the stories of most relevance to international businesspeople and policy experts from the flow of news. We supplement these with our own opinion pieces and commentary, in English. Mundus was founded in 2012 to provide information and analysis to embassies accredited to Sweden. Today, we deliver news, analysis and media monitoring of the Nordic countries to the international community in the Nordics.