Vattenfall and Swedish industry majors join forces on new energy investment
20/08/2024 12:41
By Nora Buli
OSLO, Aug 20 (Reuters) - Sweden's biggest utility
Vattenfall and a group of large industrial firms will jointly
explore investments in new fossil-free power production to meet
growing electricity demand amid decarbonisation efforts, the
companies said on Tuesday.
"We have known for quite a while that there is a steep
increase in demand in order to electrify directly or indirectly
the industries as part of the green transition," Vattenfall CEO
Anna Borg told Reuters.
Together with Industrikraft - a group consisting of Alfa
Laval, Boliden, SKF, Stora Enso and the Volvo Group - Vattenfall
is looking into how, when and what they could invest together,
and the magnitude this would take, she added.
Annual Swedish power demand is expected to double from
currently 140-150 terawatt hours (TWh) by around 2045, as Sweden
heads into the next phase of industrial development, requiring
hundreds of billions of Swedish crowns in investment, Borg said.
"I think it's very important that the timing of the
investments in the industry and in the energy production is
somewhat aligned because that is what's going to be needed in
order for everybody to be competitive and profitable," she said.
Fossil-free generation includes nuclear, wind and solar
power, each of which face their own challenges in terms of costs
or grid connection, the Vattenfall CEO added.
Sweden is planning for up to 12 new nuclear reactors by
2045, which could cost around 400 billion Swedish crowns ($39
billion) to build, a commission has found, with the government
offering to share some of investment risks.
Meanwhile, offshore wind development is held back by a lack
of clarity over the necessary grid connections, Borg said.
Industrikraft is an initiative founded to help secure
Swedish long-term energy supply, with several more companies
interested in joining, a spokesperson for the group told
Reuters.
($1 = 10.2769 Swedish crowns)
(Reporting by Nora Buli; Editing by Terje Solsvik and David
Holmes)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))