5 October 2022
More EU pressure on gas prices: Norway's response
After a meeting with EU energy ministers on 30 September, EU Energy Commissioner Kadri Simson said that sending gas to Europe entails a huge risk premium. Limiting this risk premium is crucial, but cannot be done unilaterally. Although 15 EU countries want to set price caps, the European Commission does not support the idea. The European Commission is putting further pressure on Norway to get cheaper gas, which in turn would lower electricity prices. But according to the Norwegian Petroleum and Energy Minister Terje Aasland, the Norwegian government insists on refusing to intervene politically in the gas market. He asked the European Commission to find a commercial solution together with the companies that sell gas. For a small country, it is important to protect it in order to avoid the politicisation of oil revenues. Norway has expressed its willingness to engage in dialogue, but the solution must be within a range that Norway also finds acceptable.
TotalEnergies is raising its ambition to store CO2 in the Danish North Sea
The French oil company has reached an agreement of understanding with a view to achieving the full decarbonization of Belgian cement plants. Meanwhile, TotalEnergies has applied for a permit from the Danish Energy Agency to investigate the possibility of storing carbon dioxide in the Danish North Sea. The application covers an area with presumed geologically suitable structures, including the Harald field area and the adjacent water-filled geological formation. In the Harald field, TotalEnergies has investigated the possibility of storing CO2 in abandoned oil and gas reservoirs within the framework of the Bifrost project. As the exploration area is now being extended beyond the Harald field, TotalEnergies expects to be able to increase the amount of CO2 storage and thus be able to establish a competitive market solution.
Finland's electricity production to change radically in the coming years
The 10 TWh that the nuclear plant Olkiluoto 3 will contribute is just the beginning of the changes that Finland’s electricity production is about to face. Grid company Fingrid has received requests of 163,000 MW for wind power connections. There are currently 477 wind power projects announced in Finland, with a total nominal power of nearly 44,300 MW. Finland has invested more than EUR 3.5 billion in the energy sector this year, compared to about EUR 2.5 billion previously. Within three years, wind power generation will grow by about the same amount as Olkiluoto 3. Leskelä says that if you add up the amount of wind power generated this year, next year and the year after, you come up with more than 10 TWh. Today, 87% of Finland's electricity production is fossil fuel-free and fossil fuels are steadily declining as a source of electricity production. In Finland, hard coal and oil still account for a large share of heating and transportation, but in electricity production they account for only a few percent of consumption. Due to the current high prices, the use of natural gas is steadily decreasing, and the use of hard coal for electricity generation will be banned from April 2029.
Eltel signs two agreements in Finland worth a total of EUR 11 million
Eltel has signed two agreements with Exilion, a Finnish company investing in renewable energy, to build a new power line and substation for two new wind farms in Finland. The agreements are related to investments in renewable energy and will see Eltel build a 20 km long 110 kV power line, two substations and an internal grid for two new wind farms in Finland. The parks will have a total of 17 turbines with a capacity of 100 MW. Nordex Germany is the supplier of the turbines. The total value of these contracts is about EUR 11 million and the project will start at the end of 2022 and is expected to be completed by the beginning of 2025.
Nordex receives 100 MW orders for two Finnish wind projects
German wind power company Nordex has received a 100 MW order for two wind farms in Finland. According to a press release, the customer is the Finnish investment company Exilion, which specialises in real estate and renewable energy. The wind turbines will be delivered and installed in the spring of 2024. The agreement also includes a 30-year service agreement.
Sweden's largest shipping company acquires self-driving electric ferries for USD 1 billion
Sweden's largest shipping company, Färjerederiet, is making its largest-ever investment, totalling SEK 1 billion. The contract with Holland Shipyards Group means the ferry company will buy two electric ferries, four automated moorings, two charging stations, a simulator facility and a remote control centre, with the option to buy two more vessels. They will run primarily on electricity, but have back-up engines that can run on biofuels in case of a power outage. The ferries are equipped with smart technology that allows them to traverse the ferry route at the push of a button and to berth themselves completely. Batteries are automatically charged during unloading and loading - a span of 5-6 minutes, enough time for the ferry to recharge for the next trip. The ferries are equipped with automation technology, but will initially be operated manually - and then fully automated and fully staffed. The first ferry will be delivered next summer, and then the other three will arrive about a year apart. The ferry company, which carries 22 million passengers and 12 million vehicle trips a year, aims to make all ferries climate-neutral by 2045 at the latest.
The world's first large hydrogen-powered catamaran - Gotland Hydrocat
Gotlandsbolaget has presented the concept vessel Gotland Hydrocat, the world's first large high-speed catamaran with fossil-free hydrogen propulsion. With this vessel in service from 2030, the distance between Gotland and the mainland is further reduced to less than 3 hours crossing time. The vessel is the second in the Gotlandsbolaget Horizon series. The Horizon series is based on a high-speed passenger and cargo vessel, launched as a concept model in 2021. The Gotland Hydrocat and Gotland Horizon are being developed to minimise shipping emissions and are thus designed to be powered by fossil-free hydrogen whose primary emission is water vapour. However, both ships have a so-called multi-fuel solution, which means that with relatively simple modifications, the ships can be powered by other fossil-free fuels.
NILAR has begun production of the world's first battery that can be recharged with new life
Nilar has begun the production of a next-generation battery solution at its facility in Gävle. The battery is the first to feature a technology called ReOx, which allows used batteries to be refilled with gas to restore original battery capacity. Nilar developed the ReOx technology in collaboration with researchers at Stockholm University. The order that is now in production was signed by Enequi last spring. The order applies to a total of 800 batteries with associated software for 100 of Enequi's intelligent energy storage QuiPower Storage.
Swedish digital energy company Greenely launched in Norway
Greenely is a digital energy company that uses smart technology in an app to optimise customers' electricity consumption. The company's service is based on their mobile app, which allows customers to easily reduce electricity consumption and minimise electricity costs. Soon, Norwegians will also be able to participate in reducing the cost of electricity. The app visualises customers' consumption and provides intelligent insights designed to reduce and optimise electricity consumption. It's also easy to switch electricity contracts to Greenely within the app, which provides access to the exchange's current hourly changing electricity prices and more features. The upcoming launch in Norway comes after strong growth in Sweden, where nearly 200,000 users added their homes to the Greenely platform, doubling the number of its paying customers in recent months.
Equinor completes its first solar power plant in Poland
The 58 MW Stępień solar power plant in Poland is completed and ready for start-up. Winto, a wholly owned subsidiary of Equinor, is responsible for the development and operation of the plant. In 2021, Equinor acquired the Polish solar company Winto and the company's portfolio of solar projects in Poland. The Stępień solar power plant is located in the city of Branjevo in the Warmian region of northern Poland. The facility will generate 61 GWh of electricity per year, equivalent to the electricity consumption of 31,000 Polish households. By using local suppliers for construction and operation, the project will help build knowledge and expertise in solar energy development in the Polish supplier industry.
Spies invests in the green transformation of the tourism industry
The Nordic Leisure Travel Group, including Spies, is now working with Norwegian company and investment advisor ClimatePoint to create a platform for the future green transformation of the tourism industry. Through the new partnership, Spies will invest in companies and projects that are seeking solutions in areas such as climate improvement technologies. Initially, investments are made in the Green River Fund, which is run by ClimatePoint and focuses on start-ups in the mobility, green energy and circular economy sectors. Through the new partnership, ClimatePoint acts as a bridge between Spies and the various companies and projects it chooses to support and invest in. Future returns from the various investments Spies is involved in will be reinvested in climate-enhancing technologies through ClimatePoint.
St1 plans to build synthetic methanol pilot plant at Lappeenranta
Energy company St1 is planning to connect Finland's first synthetic methanol production plant with the Finnsement plant at Lappeenranta in the Ihalinen mine. The Finnish Ministry of Labour and the Economy has provided EUR 35.4 million in funding for the St1 Power-to-Methanol Lappeenranta project, which aims to produce renewable synthetic methanol, for example as a fuel for maritime and road transport, as an alternative to fossil fuels. St1's objective in the commercial-scale pilot project is to develop a replicable and scalable synthetic methanol production concept. However, the Ministry of Labour and the Economy’s decision to support the project is conditional, as it still requires the approval of the European Commission. Funding comes from the European Recovery and Resilience Facility (RRF Recovery and Resilience Facility). Once all the planning and impact assessment processes required by the business plan and permit have been completed, the project enters the investment decision phase. If the project progresses well, the production facility will be operational by 2026. The completed plant will produce approximately 25,000 tonnes of synthetic methanol per year.
Denmark sells surplus wind power to Luxembourg
Through a third statistical transfer agreement, Denmark will receive an additional USD 1 billion in public funds by 2025 for the part of solar, wind and biomass that exceeds the EU target. The Danish government will allocate the money to renewable energy. Luxembourg will not be able to meet its EU renewable energy target by 2020, but the Luxembourg government has now reached an agreement with the Danish government to get closer to the target, at least technically.
What we're reading
- Australia’s Fortescue, Tree Energy to develop green hydrogen import facility in Germany (Reuters)
- The Tories have led on climate — until now (Financial Times)
- Germany’s divisive ‘double ka-boom’ on energy (Financial Times)
- UK power companies threatened with legislation to limit revenues (Financial Times)
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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.