Society is facing dramatic changes and climate change is at the heart of it all. As a new group, Nordion Energi has been formed to drive the transition to 100% green energy.
We currently have infrastructure for gas, and more green gas – such as biogas and hydrogen – is therefore at the top of our agenda. But our ambitions go further than that. We are channelling our efforts into creating a sustainable and flexible energy system that is fit for the future where electricity, gas and heat can all play their part.
There is no shortage of renewable energy. The challenge is making it accessible – where it’s needed, when it’s needed, and at a competitive price. And this is where infrastructure is an integral part.
We are embarking on an exciting journey together with our customers and other partners who share our objective - 100% green energy. Welcome to Nordion Energi.
A sustainable transition is one of the greatest challenges of our time, and it is gathering momentum locally and globally. Sweden has made considerable progress although a great deal remains to be done if we are to continue to retain our leading position. Interaction between production systems and energy generation is a vital element in the transition, and the capacity to transmit and store energy flexibly will prove crucial.
Nordion Energi consists of Swedegas and Weum, both of which work with infrastructure and climate-neutral distribution of gas. With its unparalleled flexibility and storage capability, the role of gas in the change currently taking place in Swedish industry, combined with a sustainable energy and transport system, is pivotal. There is considerable support among politicians and in industry for expansion of green gas production. Nordion Energi is responsible for accelerating the shift towards more widespread use of renewable gases.
The group also includes of Falbygdens Energi, which offers electricity network operations in Falköping and the surrounding area. We work actively within the entire group to increase the share of renewable energy in our infrastructure. Together we have more than 40,000 customers, including industrial enterprises, energy companies, commercial properties, and private consumers. But we have the capacity and expertise to do a great deal more. We are beginning to build up an energy group that offers a broader range of sustainable solutions to assure the energy supply of the future.
By operating and investing in infrastructure, Nordion Energi has a socially beneficial, capital-intensive, and long-term business. Both operations and investments must respond to high demands and contribute to both a sustainable society and a sustainable working environment. Sustainability is integrated throughout Nordion Energi's operations and concerns all employees.
The report summarises the sustainability work during the last calendar year.
Nordion Energi is owned by the European Diversified Infrastructure Fund II (EDIF II), managed by Igneo Infrastructure Partners, part of the First Sentier Investors Group (FSI). FSI is a global investment management company with more than 20 years’ experience of infrastructure investment. EDIF II, whose investors are mainly European pension funds, focuses on long-term investment in European infrastructure companies.
Three major trends are having a transformative impact on every aspect of society – and on the work we do.
Climate transition needs to be brought to a new level. There are already effective energy and distribution networks in place with a reduced climate footprint. What is required are novel forms of interaction between different players in the community to bring new opportunities to fruition.
Production and consumption of energy have changed. Energy management solutions are now more local than national.
Data is the greatest asset of our time. Through digitalisation we are creating new, attractive offers to all our customers.
“Hydrogen plays a great role in the energy transition. Not least, we see a significant demand for fossil-free green hydrogen driven by large industrial investments. We are therefore very glad to be able to sign with two experienced and innovative employees to take our ambitions one step further. They both have long experience in working with matters related to the industry's needs in terms of green energy transition”, says Hans Kreisel, CEO of Nordion Energi.
Mox Murugan is hired as Business Development Director and starts on September 19, 2022. Mox most recently came from the role of CCO (Chief Operating Officer) at Invest in Norrbotten where he worked with investments in northern Sweden with a focus on the region's natural resources, in particular green hydrogen. He has extensive experience in environmental issues and investments in renewable and sustainable growth for communities in different parts of the world.
Anders Järvelä is appointed as Commercial Director and will start in December 2022. Anders has extensive experience from leading positions in the energy industry and currently works as Head of Corporate Development at Skellefteå Kraft. He is also a board member in several companies in the energy sector, including Charge Amps, Sekab and Mellansvensk Kraftgrupp AB.
Hydrogen plays an important role in the transformation of the energy system and enables many sectors of society to reach their climate goals. Nordion Energi's goal is to drive the energy transition to 100% green energy, and investing in new, efficient hydrogen infrastructure is of great importance to make this possible. Nordion Energi is involved in several hydrogen initiatives; one of them is the Nordic Hydrogen Route, which was launched in the spring of 2022 together with Gasgrid Finland. By building a cross-border hydrogen infrastructure in Bothnia Bay region, we strengthen the energy independence, drive decarbonization, support regional green industrialization, and ensure access to an open, reliable, and safe hydrogen market.
Saila Horttanainen, Director Communications at Nordion Energi, email@example.com, phone. +46 70 622 76 06
Hans Kreisel, CEO at Nordion Energi AB, firstname.lastname@example.org, phone. +46 72 217 5821
Early warning is the first of three crisis levels. An early warning does not imply an immediate reduction of the natural gas supply in Sweden. It is a signal from the Swedish Energy Agency to operators, industries and customers of the western Swedish natural gas system to prepare for a possible future decline in the natural gas supply. The supply of gas in Sweden is robust at the moment and the stockpiles of gas in Europe, including Denmark and Sweden, are well stocked ahead of the coming autumn.
"We are growing through interaction between electricity, gas and heat."
Says Nordion Energi's CEO Hans Kreisel in the Group's third sustainability report. The report summarizes the sustainability work during 2021 and has been prepared in accordance with the Global Reporting Initiative (GRI) Standard level Core.
We are particularly pleased that the share of biogas in our network continues to increase for the fourth consecutive year and was measured to just over 34 percent.
The work to reduce emissions affecting the climate also gave results. Methane gas emissions decreased in 2021 by 31 percent compared with base year 2019. Also, greenhouse gas emissions have decreased, with 38 percent between 2021 and 2019.
The constant work for a safe working environment has had positive results. 2021 was still a year completely without serious injuries.
Read more about our work in sustainability and the report in full here Pdf, 6 MB..
There is a growing consensus, supported by the new EU policy framework, e.g., the Fit for 55 package and the Gas Directive, that hydrogen infrastructure planning needs to be developed jointly by electricity and gas TSOs and include cross border connections between neighbouring countries.
“Both Finland and Sweden have significant renewable energy resources and the Bothnian Bay region has unique prerequisites for the development of new, clean hydrogen industry. This development can accelerate our transformation to become globally leading clean hydrogen and carbon negative economies. This is a unique opportunity for both countries to create a hydrogen market around the Bothnian Bay region,” says Olli Sipilä, CEO of Gasgrid Finland.
The Bothnian Bay is a potential region for the development of the first cross-border integrated hydrogen infrastructure in the Nordics. Both companies have identified very active interest in hydrogen by customers and stakeholders there. European hydrogen supply and demand was analysed by the European Hydrogen Backbone initiative, consisting of gas-TSOs in 21 European countries. The analysis shows that there is significant potential for hydrogen supply in the Nordics.
“The region is in a phase of strong industrial development. Demand for energy is growing rapidly and hydrogen is crucial for decarbonising industries and meeting climate goals. We need to think and act in new ways, as well as work in new partnerships, to make investments in the large-scale infrastructure needed for this transition,” says Hans Kreisel, CEO of Nordion Energi.
In spring 2022, the companies are planning to analyse the potential of the region in more detail and to present a regional forecast on hydrogen and electricity demands for 2025-2045. The companies aim also to develop possible draft routing for the hydrogen transmission network as part of the future energy infrastructure in the region. During the investigation phase, Gasgrid Finland and Nordion Energi will have an active dialogue with stakeholders of the future value chain of hydrogen – producers, industries, and authorities in both countries.
Sara Kärki, Head of Strategic Analysis & RDI at Gasgrid Finland, email@example.com, tel. +358 40 158 1722
Saila Horttanainen, Director Communications at Nordion Energi, firstname.lastname@example.org, tel. +46 70 622 76 06
Gasgrid Finland Oy is a Finnish state-owned company and transmission system operator with system responsibility. We offer our customers safe, reliable, and cost-efficient transmission of gases. We actively develop our transmission platform, services, and the gas market in a customer-oriented manner to promote the carbon-neutral energy and raw material system of the future. Find out more: www.gasgrid.fi
Nordion Energi specialises in energy infrastructure and is driven by a clear ambition: to be part of driving the transition to 100% green energy. Nordion Energi is the TSO (Transmission System Operator) for the Swedish main gas grid, owns and operates the country’s biggest gas distribution network and also has electricity network operations. Nordion Energi ensures our customers such as industries, municipalities, CHP plants, households, filling stations and restaurants that they are always supplied with energy in a safe, sustainable way.
Quick action is needed to reach the EU’s ambitious climate targets and desired scale-up of hydrogen. Therefore, the paper suggests 7 points that should be covered in an initial legislative framework. The paper also describes how the European hydrogen backbone can be financed, outlining the investment needs, investor perspectives, and the different country perspectives.
Hydrogen will be very important in a future energy system to reach the climate targets in Europe and Sweden, says Hans Kreisel, CEO at Nordion Energi. – And in order to stimulate investments and start the implementation of hydrogen infrastructure, the need for legislation and regulations crucial.
By 2030, the proposed hydrogen backbone will largely be composed of regional networks, consisting of over 64% repurposed pipelines and amounting to more than 9,100 km in all nine Gas for Climate countries. The investments needed to develop these national backbones by 2030 lead to a sum of around 11 billion euros. These investments will provide an important first step towards a pan-European liquid hydrogen market. Gas infrastructure companies and financial institutions are ready to invest in hydrogen and hydrogen infrastructure, and indicate the need for legislative clarity. European legislation and national governments play an important role in enabling the hydrogen backbone. Setting clear targets and timelines, and introducing policies to meet those, are important steppingstones to swiftly move forward.
Gas for Climate supports the EU's ambition to create a liquid, cross-border hydrogen market and foresees a legislative step-by-step approach to achieve this. This approach will allow the EU, Member States, and Gas TSOs to get started based on an initial legislative framework. In line with how natural gas is regulated in the EU today, Gas for Climate sees that regulated tariffs and Third Party Access (TPA), covering both new and repurposed hydrogen pipelines are part of a future in which the TSOs will be acting as unbundled regulated monopolies in a mature market.
This paper provides input to the public consultation by the European Commission on Gas markets and the revision of the EU rules on market access.
Read the policy document in full here: https://gasforclimate2050.eu/wp-content/uploads/2021/06/Gas-for-Climate-Priorities-for-the-EU-hydrogen-legislation-24-June-2021-2.pdf
The report also states that Sweden can become self-sufficient on hydrogen and that the production of it will have its center in electricity area 2. From there, it can be cost-effectively transported to regions where there are industries for which hydrogen is crucial to become fossil-free.
Hydrogen, but also biogas, has a much larger role in the future energy system. One of the strengths of gas is that, on a large scale and over longer distances, it is significantly cheaper to transport than electricity. The cost for gas transport is estimated in previous studies to be 2-4 times lower than for electricity.
- It is socio-economically interesting to invest in infrastructure for hydrogen. The report also increases the insight into how central the hydrogen infrastructure is in both achieving the climate goals and a balanced energy system, says Hans Kreisel, CEO of Nordion Energi.
There will be clear synergies between the hydrogen infrastructure and existing and future electricity networks. Hydrogen production can, for example, use cheap electricity production and alleviate bottlenecks in the electricity grid.
Extensive expansion of hydrogen infrastructure requires several efforts
The study shows that electricity demand in Sweden will almost double to 240-250 TWh by 2045, a large part of which will be used to produce and meet the country's estimated hydrogen demand (50-68 TWh). The expansion of both electricity and hydrogen networks therefore needs to be co-planned and optimized based on customers' needs in different parts of the country.
The expansion of hydrogen infrastructure will be based on several regional, industrial clusters and their hydrogen needs, with a central node in electricity area 2 with at least 40% of the production. The network will then be joint via these clusters into a more cohesive national hydrogen network.
- Important efforts now are to start co-planning the electricity and gas infrastructure, so-called sector coupling, at national level and to start preparing for a model that offers benefits for the society by being open to everyone who wants to join. Furthermore, hydrogen networks should be regulated, just like electricity networks, says Hans Kreisel.
It is also necessary to set clear targets and to develop strategies for hydrogen, offshore wind power and biogas. The Swedish strategies should be developed in alignment with the EU's targets, according to the authors.
Demand for biogas is expected to increase
The existing gas network in southwest Sweden, which is currently used for the transport of natural and biogas, is already dimensioned to manage a long-term increased demand for biogas in the region. The share of biogas in the system increases every year and today accounts for about 30% of the gas traded. The goal is 100% green gas. This network will thus be used for the distribution of biogas and for hydrogen a completely new infrastructure is needed.
To read the report in full, please visit: https://energiforsk.se/program/vatgasens-roll-i-energi-och-klimatomstallningen/rapporter/the-role-of-gas-and-gas-infrastructure-in-swedish-decarbonisation-pathways-2021-788/
For more information or questions, please contact:
Matilda Danielsson, Communications at Nordion Energi
Tel: 073 842 91 90
European Hydrogen Backbone: Analysing future demand, supply, and transport of hydrogen. Gas for Climate. Juni 2021. https://gasforclimate2050.eu/wp-content/uploads/2021/06/EHB_Analysing-the-future-demand-supply-and-transport-of-hydrogen_June-2021.pdf
"Our vision is to create an energy that is fit for the future."
Says Nordion Energi's CEO Hans Kreisel in the Group's second sustainability report. The report summarizes the sustainability work during 2020 and has been prepared in accordance with the Global Reporting Initiative (GRI) Standard level Core.
We are particularly pleased that the share of biogas in our network continues to increase for the fourth consecutive year, and was measured to just over 25 percent.
The work to reduce emissions affecting the climate also gave results. Methane gas emissions decreased in 2020 by 11% compared with the new base year 2019. Total greenhouse gas emissions also decreased by 12% in 2020 compared with 2019.
The constant work for a safe working environment has had positive results. 2020 was still a year completely without serious injuries.
Read more about ur work in sustainability and the report in full here.
District heating and broadband networks will now be operated by Solör Bioenergi, while the energy infrastructure company Nordion Energi will continue operating the electricity network. It is also the electricity network business that keep the brand name Falbygdens Energi.
17,000 customers in and around Falköping today get their electricity from Falbygdens Energi. A large part of the delivered electricity already come from wind power, and investments focus on preparing the network for increased levels of renewable electricity sources such as wind and solar power. The company has 30 employees and a turnover of just over SEK 150 million.
- Infrastructure is crucial in the energy transition as more customers switch to renewable energy sources. The acquisition of Falbygdens Energi is yet another step to be a driving force in the transformation, says Hans Kreisel, CEO at Nordion Energi.
With the acquisition of Falbygdens Energi, Nordion Energi is broadening its offering with distribution of electricity. The Group already consists of Weum, the country's largest gas distributor and Swedegas, which owns and operates the gas transmission network in southwest Sweden.
Nordion Energi has 40,000 customers in industry plants, companies, energy distributors, commercial property companies and private households. The objective is to drive the energy transition towards a society with 100% green energy. Nordion Energi has approximately 110 employees and a turnover of SEK 810 million.
Read more about Falbygdens Energi here.
CinfraCap is a unique collaboration between Göteborg Energi, Nordion Energi, Preem, St1, Renova and the Port of Gothenburg AB. The project focuses on transportation of captured carbon from each operation down to the port - how it can be done in a cost-effective and climate-smart way. The study, which the project developed with support from COWI, presents the possibilities for a joint logistics and infrastructure solution. The study proposes how captured carbon dioxide is most appropriately collected, how intermediate storage should take place before loading, what permits must be obtained and risks. It also includes a suggested business model, which can be of help for similar projects in other locations in Sweden.
The project has the potential to be able to store approximately 2 million tonnes of carbon dioxide per year (which only represents the companies in the initiative), which is equal to 75 percent of emissions from domestic transport in the Västra Götaland region. The infrastructure is also intended to be accessible via a third-party connection. This provides further potential for amount of carbon dioxide handled each year.
There are many benefits in working together to build infrastructure for carbon dioxide, but it will be expensive to implement. Therefore, support from the state and authorities as well as financial incentives are required to secure investments.
The final report has been sent to the Swedish Energy Agency, which through its climate initiative Industriklivet has financed half the project. The report is therefore also available to everyone. The companies in CinfraCap will now continue discussions and look into possibilities to make reality of the plans which includes, in addition to technology, for example commercial conditions as well as necessary regulations in connection to CCS / Bio-CCS.
Read more about CinfraCap here.
Today, the European Hydrogen Backbone (EHB) initiative presents an updated version of its vision for a dedicated hydrogen transport infrastructure across Europe. The group proposes a hydrogen network of 39 700km by 2040, with further growth expected after 2040. This grid connects 21 European countries. The vision launched today follows the EHB report published in July 2020, which sparked a debate across Europe. That report described a network of 23 000 km covering ten countries.
- A joint European vision that supports the EU hydrogen strategy, show how we can connect the energy system to ramp up the decarbonization, says Hans Kreisel, CEO Nordion Energi. – In Sweden we for example have industries in mining and steel where hydrogen will be key in the transition.
Two-third share repurposed pipelines
Some 69% of the proposed hydrogen network consists of repurposed existing natural gas grids. The remaining 31% newly built pipelines are needed to connect new off-takers and are located in countries with small gas grids today, yet with high expected future hydrogen demand and supply.
Lower investment costs per kilometre of pipeline
The almost 40 000 km envisaged 2040 backbone requires an estimated total investment of €43-81bn. The investment per kilometre of pipeline is lower compared to last year’s EHB report because the previous report only included cost estimates for pipelines with a diameter of 48 inch, while the present report takes into account that a large part of today’s natural gas infrastructure and of tomorrow’s hydrogen infrastructure consists of smaller pipelines. Smaller pipelines are cheaper to repurpose while leading to somewhat higher transport cost per kilometre. Transporting hydrogen over 1 000 km would on average cost €0.11-0.21 per kg of hydrogen, making the EHB a cost-effective option for long-distance hydrogen transportation.
Stable regulatory framework required
The hydrogen infrastructure maps for 2030, 2035 and 2040 published today reflect the vision of 23 European gas TSOs, based on their analysis of how infrastructure could evolve to meet decarbonization targets. It is important to stress that the hydrogen transportation routes and timelines in the maps are not set in stone. The final Backbone design and timeline depend on market conditions for hydrogen and natural gas and the creation of a stable regulatory framework.
Roadmap for hydrogen infrastructure in Sweden – vision
The Swedish climate target is to reach net-zero emissions of greenhouse gases by 2045. The decarbonization efforts necessary for this goal to be achieved are many and the visionary and ambitious scenario of a dedicated hydrogen backbone not only supports this goal, but it brings additional robustness to the entire energy system. The backbone would aid the transmission of energy from north to south creating a sustainable, flexible, and balanced energy system.
During the late 2020s, the Swedish backbone emerges on the coastal region in the south-west of the country with an interconnection to the Danish grid. Chemical and petrochemical industries situated close to the backbone are the drivers of hydrogen demand. Given the absence of parallel piping infrastructure, dedicated hydrogen pipelines will have to be newly built.
Given the nature of Sweden’s geography, terrain, and location of industrial clusters, hydrogen island grids are starting to arise and are subsequently connect via regional networks.
By 2030, significant industrial use of hydrogen is expected, and the total energy demand requires large scale-up of RES and transmission solutions. Large onshore wind parks situated mainly in scarcely populated areas, and offshore wind parks emerge across the country. The southern backbone stretches further north not far from the Stockholm region of Sweden, linking industrial demand centres and cities in southern and central Sweden. In the most northern parts of Sweden an additional backbone emerges with an interconnection to the Finnish backbone. The transforming mining and steel industries are the main drivers behind the hydrogen demand in the most northern parts of the country.
By 2035, the southern and northern backbones connect, creating a hydrogen corridor across the country, linking the backbones of Denmark, Sweden, and Finland to the European hydrogen backbone. A new energy transmission network from north to south would be a reality. An offshore connection across the Gulf of Bothnia, via an energy island, would be the second possible interconnection between Sweden and Finland.
By 2040, a second interconnection (offshore) from Denmark could emerge via the Kattegat sea area, which is the fourth possible interconnector for Sweden.
Download the report in full here: www.europeanhydrogenbackbone.eu
- For Nordion Energi, the deal means that we continue to build an energy group with a sustainable and flexible offering, prepared for the future. We look forward to developing the electricity network business in Falköping and the surrounding area and being a strong partner to our customers, says Hans Kreisel, CEO at Nordion Energi.
In January this year Nordion Energi acquired Falbygdens Energi which supplies electricity, heating and fiber network to customers in and around the area of Falköping. The company works actively to increase renewable energy in the infrastructure, where the electricity grid is an important part. The electricity network business, which is regulated, will continue to be run by Nordion Energi under the brand Falbygdens Energi, while the remaining operations (district heating and fiber network) will be taken over by Solör Bioenergi.
Solör and Nordion will in future have a close collaboration where both parties safeguard a good collaboration, with the customer in focus.
This change in Falbygdens Energi will not affect the company's customers, but eventually it means some will have agreements with two different suppliers and receive invoices from each of them.
For queries, please contact Saila Horttanainen, Director Communication and Sustainability at Nordion Energi.
Phone: +46 70 622 76 06
- Falbygdens Energi is a well-managed company with a solid regional offering. They have a clear sustainable focus and strong relationships to their customers which we value highly, says Hans Kreisel, CEO at Nordion Energi. – We are also happy to only a year after Nordion Energi was introduced, complete our first acquisition.
Falbygdens Energi delivers electricity, heating, and broadband to customers in and around the vicinity of Falköping. Much wind power is connected to the electricity grid and the company are continuously investing to prepare for more production of renewable electricity, such as wind and sun power. Falbygdens Energi has 50 employees and a 220 million SEK turnover.
- Nordion Energi and Falbygdens Energi share the ambition to help our customers reach their environmental and climate targets. We are both also actively working to increase the share of renewable energy in our infrastructure, says Hans Kreisel.
Nordion Energi was founded in 2020 with a clear purpose to drive the energy transition towards 100% green energy. In the Nordion Energi group also gas infrastructure companies Swedegas and Weum are included.
Read more about Falbygdens Energi through this link: https://falbygdensenergi.se/
For inquiries, please contact Saila Horttanainen, Director Communications and Sustainability at Nordion Energi.
Phone: +46 70 622 76 06
Today, the Gas for Climate consortium published a policy paper which provides an analysis-based rationale on why an 11% renewable gas target is needed to meet the EU's climate ambition to cut GHG emissions by 55% in 2030. The policy paper follows last year’s Gas for Climate Gas Decarbonisation Pathways 2020-2050 report, which showed how additional policy measures are needed to scale-up biomethane, green and blue hydrogen which are all needed to meet the EU’s climate targets. This policy paper focuses on biomethane and green hydrogen, acknowledging they require additional incentives compared to the incentives required to scale-up blue hydrogen.
Renewable gas, both hydrogen and biogas, will be very important in society's transition to green energy. A clear target for renewable gas is therefore an important tool, perhaps even crucial, for Europe to achieve the set climate goals, says Hans Kreisel, CEO at Nordion Energi. In Sweden, we already have over 30 percent biogas in our system and we will of course ensure that the importance of biogas continues to increase. As for hydrogen, it is a top priority after the European Commission launched the hydrogen strategy that will greatly accelerate the transition.
To ensure an accelerated and consistent market ramp-up of green hydrogen and biomethane across the EU, the envisioned 11% target is supported by two binding sub-targets for green hydrogen and biomethane. At least 8% of the gas consumed in the EU by 2030 should be biomethane, and at least 3% should be green hydrogen. The sub-targets reflect that biomethane is commercially available today and scalable in a sustainable manner, while green hydrogen shouldramp up during the 2020s too. The 3% green hydrogen target aligns with the European Commission target for at least 40GW of electrolyser capacity in the EU. A binding target for renewable gas will help to reduce production costs of biomethane and green hydrogen during the 2020s, while in the long-term help to achieve the European decarbonisation targets at the lowest societal costs. Gas for Climate foresees that an EU-wide target of renewable gas would be translated into differentiated national targets.
The policy paper on renewable gas is the first in a series of policy papers to be launched in 2021. Gas for Climate is currently undertaking new activities including setting up a European Biomethane Alliance, and a new hydrogen demand analysis.
Gas for Climate expands and announces new chair
Supporting the vision of Gas for Climate and its ambition for 2021, DESFA, the Hellenic gas TSO, joined the consortium. Gas for Climate now has members from 9 EU member states. The new chair of Gas for Climate, Marie-Claire Aoun, head of Institutional Relations of Teréga, emphasises: “I am grateful that DESFA joins Gas for Climate at the start of a crucial year for renewable and low-carbon gases in the EU. In this dynamic period, I am honoured to chair the Gas for Climate initiative. We will continue to provide proposals and analyses to reach carbon neutrality in the EU in 2050 at the lowest costs for society".
Download the policy paper here.
For other Gas for Climate studies, see www.gasforclimate2050.eu.
Notes to Editors
Gas for Climate was initiated in 2017 to analyse and create awareness about the role of renewable and low carbon gas in the future energy system in full compliance with the Paris Agreement target to limit global temperature increase to well below 2 degrees Celsius. To this end, the entire economy has to become (net) zero carbon by mid-century.
The Gas for Climate group consists of eleven leading European gas transport companies (DESFA, Enagás, Energinet, Fluxys Belgium, Gasunie, GRTgaz, ONTRAS, OGE, Snam, Swedegas and Teréga) and two renewable gas industry associations (European Biogas Association and Consorzio Italiano Biogas). The CEOs of the thirteen members are: Piero Gattoni (Consorzio Italiano Biogas), Nicola Battilana (DESFA), Harm Grobrügge (European Biogas Association), Marcelino Oreja Arburúa (Enagás), Torben Brabo (Energinet), Pascal De Buck (Fluxys), Han Fennema (Gasunie), Thierry Trouvé (GRTgaz), Ralph Bahke (ONTRAS), Jörg Bergmann (OGE), Marco Alverà (Snam), Hans Kreisel (Swedegas), Dominique Mockly (Teréga).
The Policy Paper for renewable gas is the first in a series prepared by Guidehouse. Renewable gas is all gas produced from renewable sources; This includes biomethane in the form of upgraded biogas produced by anaerobic digestion of agricultural biomass and organic wastes, biomethane produced from thermal gasification of woody residues, hydrogen produced from renewable electricity or biomethane, and synthetic methane produced from renewable hydrogen.
Renewable gases have different roles in the system and the wider economy as they provide storable and dispatchable renewable energy, heat to buildings that have gas grid connections, high temperature heat and feedstock in energy-intensive industries, and fuels to heavy and long-distance road transport, shipping and aviation. They also create future-proof
In the proposal for the hydrogen gas strategy, Hans Kreisel agrees with the conclusions on for example prioritized policy areas, the need for an extended and planned hydrogen infrastructure, and biogas being part of the production of hydrogen. However, Nordion Energi also recognizes that the hydrogen gas strategy need to consider climate challenges, the potential of quickly reducing carbon dioxide emissions with for example CCS technology, and the work that takes place at EU level. This is to make sure Sweden will have a quicker climate transition and a better financed hydrogen expansion.
Read more about the hydrogen has strategy here.
Read the statement in full below (in Swedish).
Särskilt yttrande – Fossilfritt Sveriges förslag till vätgasstrategi
Sverige har som målsättning att ha noll nettoutsläpp av växthusgaser 2045. Fossilfritt Sverige har tagit fram en strategi för hur vätgas kan påskynda energiomställningen till ett fossilfritt samhälle och vilken politik som behövs för att främja vätgasutvecklingen. Som ägare av det svenska stamnätet för gas planerar Nordion Energi stora investeringar för att möjliggöra att vätgas får en betydande roll i den svenska energiomställningen. Jag välkomnar därför både Fossilfritt Sveriges förslag till strategi och slutsatsen att vätgasen har en viktig roll i Sveriges hållbara omställning.
I likhet med strategin från Fossilfritt Sverige driver Nordion Energi på för en snabbare energiomställning och instämmer i slutsatsen att en påskyndad utbyggnad av gasinfrastruktur kommer krävas för en ökad vätgasproduktion i Sverige. Däremot är jag bekymrad över att vätgasstrategin inte tar tillräcklig hänsyn till dagens klimatutmaningar, möjligheterna att snabbt reducera koldioxidutsläpp samt det omfattande arbete som sker på EU-nivå, vilket sammantaget riskerar att leda till att Sverige får en långsammare och sämre finansierad vätgasutbyggnad med en långsammare omställning som följd.
Det är avgörande för svensk konkurrenskraft att denna strategi stödjer den svenska industrins omställning från nuvarande energibalans till en förnyelsebar energiförsörjning. Därför behöver argumentationen fördjupas inom ett antal områden.
Inför det fortsatta arbetet med att ta fram en nationell strategi för Sverige lämnar jag därför följande särskilda yttrande till Fossilfritt Sveriges förslag till vätgasstrategi:
EU premierar en snabbare uppbyggnad av vätgasproduktion
I EU:s Hydrogen Strategy konstaterar EU-kommissionen att helt förnybar produktion av vätgas kommer ta allt för lång tid att implementera för att klimatmålen ska nås. Därför kommer produktion av vätgas genom s.k. low-carbon production som t.ex. CCS (Carbon Capture and Storage, en teknik där koldioxid fångas in) eller el producerad av kärnkraft, stödjas parallellt med att helt förnybar produktion skalas upp. Vätgasstrategin från Fossilfritt Sverige, däremot, slår fast att vätgas som produceras med CCS-teknik inte ska få stöd i framtida regleringar och stödsystem.
Stöd för CCS skulle påskynda dekarboniseringen av nuvarande vätgasproduktion inom kemi- och petrokemiindustrierna och ge dem samma konkurrenskraft som ges i övriga europeiska länder. I Fossilfritt Sveriges strategi konstateras att det redan idag planeras vätgasprojekt som tillsammans kräver ytterligare 65 TWh el. Jag delar därför strategins uppfattning att vore ett misstag att inte dessutompremiera vätgasproduktion med hjälp av kärnkraftsbaserad el.
Jag menar också att det finns anledning för en svensk vätgasstrategi att bemöta EU:s pågående arbete med att ta fram en taxonomi för hållbara investeringar. Taxonomin klassificerar CCS-teknologin som hållbar och det vore negativt för den svenska industrin om den inte kan ta del av de stora investeringar som skall allokeras till omställningen. CCS är viktigt för utbyggnaden av vätgas men också för andra branscher, såsom avfallsförbränning och cementindustrin.
Helhetsperspektiv på infrastrukturutveckling bör beaktas
Strategin som Fossilfritt Sverige har tagit fram tillsammans med näringslivet ger många goda exempel på pågående projekt som helt eller delvis är beroende av en kraftigt ökad vätgasproduktion.
Vätgasproduktion genom biogas är en effektiv och grön produktions-metod, mer energisnål än elektrolys. Vätgasstrategin rekommenderar att Svenska Kraftnät ska ta fram en elnätsplan för att tillgodose energi-behovet för vätgasproduktion. På samma sätt anser jag att det behövs ett uppdrag att ta fram en gemensam sektorövergripande plan för de båda stamnäten för gas och el. Elnätet kommer att behöva kompletteras med en kraftfull utbyggnad av biogasen, för att både lösa dagens kapacitets-utmaningar och möjliggöra en framtida vätgasproduktion.
-Uppdraget vi fick var att undersöka möjligheten för en optimerad logistik och mellanlagringskedja för att på sikt kunna transportera upp till två miljoner ton infångad koldioxid per år från anläggningars staketgränser till kajkant. För att klara detta krävs en fungerande infrastruktur på plats, där vi nu arbetar för fullt med att ta fram analyser, scenarion och uträkningar, säger Hesam Mortazavi, projektledare på COWI.
I veckan har man varit nere i Energihamnen i Göteborgs hamn för att undersöka potentiell lämplig plats för framtida mellanlagring samt eventuell förvätskning till flytande koldioxid.
-Vi har hittat ett kajnära läge som skulle kunna fungera. Vi har också varit runt i hamnen för att skapa oss en bild och fundera på hur nya rörgator kan tänkas dras ner till kajkant, säger Claes Rödén, Engineering Manager på Göteborgs Hamn AB.
Tidigare erfarenhet visar att komplexa infrastrukturprojekt överlag tenderar att bli mycket dyra och finansiering ofta blir till en knäckfråga. Därför fokuserar man nu i förstudien på huruvida det går att optimera kostnaden för investering och energiförbrukning och vilket alternativ, enskild eller gemensam satsning, som skulle vara mest lämplig. Till mars 2021 ska detta vara klart och resultatet av förstudien för projekt CinfraCap ska presenteras.
– Oavsett vilken utgång vi får på resultatet så ser vi redan nu att vi kommer behöva rekommendera subventioner. Det är ett kostsamt projekt att genomföra och upprätthålla över tid. Det gäller att ha med både kostnad för investering i anläggning och för rör och inte heller glömma framtida driftskostnader. Dock ser vi en affärsmässig uppsida förknippat med att bolagen kan sälja utsläppsrätter i och med att de sänker sina CO₂-utsläpp när de använder CCS-teknik, säger Isabella Herstad-Norin, processansvarig för CinfraCap på COWI.
CCS, CarbonCapture and Storage, ses idag som en viktig del i omställningen av det globala energisystemet och det pågår flera utvecklingsprojekt inom området. I CinfraCap vill parterna ta fram en optimal logistik- och infrastrukturlösning för CCS i en större, industriell skala. Samtidigt vill man se till att kopplingen till andra CCS-projekt säkerställs. Grundtanken är att kunna investera i ett system som också ska vara möjlig för fler aktörer att nyttja. CinfraCap kompletterar flera pågående forsknings- och demonstrationsprojekt, som till exempel projekt inom satsningen Klimatledande processindustri, Preem CCS och ZEROC, samt även NorthernLights, som är ett pågående fullskaleprojekt för lagring av koldioxid utanför norska västkusten.
CinfraCap är ett samverkansprojekt mellan NordionEnergi, Göteborg Energi,Renova, Göteborgs Hamn, Preem och St1.
Läs mer om CinfraCap här.
Fakta om CCS
CCS, CarbonCaptureStorage, innebär att koldioxid fångas in och görs till flytande form med hjälp av tryck och låg temperatur. Därefter kan den lagras säkert under mark och havsbotten och på så sätt minskar utsläpp av växthusgaser i atmosfären. Fångas koldioxiden in från en biogen källa, så kallad BECCS, kan andelen koldioxid i atmosfären till och med sänkas.
Läs mer om CCS på Naturvårdsverkets hemsida.
- New Gas for Climate report shows market overviews and trends related to the scale-up of biomethane and green and blue hydrogen in Europe.
- Biomethane is scaling up rapidly at decreasing costs. A wave of blue and green hydrogen projects is expected within the coming years.
- 15% growth in grid-transported biomethane in 2018 alone, with now 65% of biomethane produced from biowaste and bio-residues.
A new report published by the Gas for Climate consortium launched today. This market state and trends report provides a unique review of current biomethane and green and blue hydrogen markets in Europe. The report, developed by Guidehouse, describes key market trends and highlights leading project examples.
Biomethane production is scaling up rapidly, with an increased share of biowaste and bio-residues as feedstock, while production costs are starting to decrease, and grid injection levels are increasing. Many green and blue hydrogen projects are described in the report. These projects focus on scaling up hydrogen demand in new industrial sectors, exploring hydrogen use in heavy transport, or aim to decarbonise existing grey hydrogen demand. The report also highlights how existing gas infrastructure is increasingly being used to transport biomethane and is being prepared to transport hydrogen. Several showcase projects focus on enabling renewable and low-carbon gas transport; this is significant because it shows how gas infrastructure can accelerate the scale-up of hydrogen and biomethane.
All these developments provide a solid basis to achieve the EU 2030 decarbonisation target and show that industry is ready to scale up biomethane and hydrogen. Regulatory certainty would help to accelerate ongoing developments and spur investments. In January 2021, Gas for Climate will publish a policy paper which calls for a mandatory renewable gas target. Such a target would further boost the identified trends that are needed to stay on track for the decarbonisation of the European energy system.
Visit the interactive Market State and Trends report and download the full report here; MSTreport.gasforclimate2050.eu
Notes for Editors
Gas for Climate was initiated in 2017 to analyse and create awareness about the role of renewable and low carbon gas in the future energy system in full compliance with the Paris Agreement target to limit global temperature increase to well below 2 degrees Celsius. To this end, the entire economy has to become (net) zero carbon by mid-century.
The Gas for Climate group consists of ten leading European gas transport companies (Enagás, Energinet, Fluxys Belgium, Gasunie, GRTgaz, ONTRAS, OGE, Snam, Swedegas and Teréga) and two renewable gas industry associations (European Biogas Association and Consorzio Italiano Biogas).
The CEOs of the twelve members are: Piero Gattoni (Consorzio Italiano Biogas), Harm Grobrügge (European Biogas Association), Marcelino Oreja Arburúa (Enagás), Torben Brabo (Energinet),
Pascal De Buck (Fluxys), Han Fennema (Gasunie), Thierry Trouvé (GRTgaz), Ralph Bahke (ONTRAS), Jörg Bergmann (OGE), Marco Alverà (Snam), Hans Kreisel (Swedegas), Dominique Mockly (Teréga).
The Market State and Trends report is the first in a series prepared by Navigant, now Guidehouse. The report places key trends related to biomethane, hydrogen and gas infrastructure in the light of required developments towards 2030 as identified in the Accelerated Decarbonisation pathway scenario which was published by Gas for Climate in April 2020.[1
The report shows that already now, key deployment trends for biomethane and green and blue hydrogen are starting the move in the right direction to achieve 2030 decarbonisation targets as analysed in the 2020 Gas for Climate pathways study. An increased deployment of biomethane and hydrogen will also create large numbers of jobs, as was analysed in a report by Gas for Climate in 2019.
On the biomethane supply side, production technologies are developing and being scaled up, and waste stream feedstocks are gaining momentum. Hydrogen technology developments are scaling up in size and early stage project developments are taking place. For both gases, acceleration is still required to increase cross-border trade and bring down production costs.
The report distinguishes between grey, green and blue hydrogen. Grey hydrogen is produced from natural gas and is being used at scale in EU industry today. Blue hydrogen adds carbon capture and storage to hydrogen production based on natural gas. Green hydrogen is being produced by splitting water into hydrogen and oxygen in an electrolyser, using renewable electricity and water as feedstock. Green hydrogen can also be produced by feeding biomethane in a steam methane reforming unit or an autothermal reforming unit
The European Clean Hydrogen Alliance plays a key role in Europe's energy transition following the European Commission's strategy for big investments in hydrogen going forward. It is an important initiative where Nordion Energi together with almost 600 other members representing industry, politics and society will drive the development.
“Gas is crucial in the energy transition in Sweden and in Europe in order to reach net zero emissions,” says Hans Kreisel, CEO of Nordion Energi. “We see the value of being part of the European Clean Hydrogen Alliance and prompt relevant investments in, for example, sector coupling.”
Extending the hydrogen system requires major investments. Approximately EUR 430 billion are expected to be necessary to build a competitive European market and to place Europe as world leader in this field. The European Clean Hydrogen Alliance is important in this work.
Hydrogen is described as a crucial part of the transition to an emission free society. It has zero carbon emissions and offers the possibility for use in energy storage, heavy duty transport and energy-intensive industries.
About the European Clean Hydrogen Alliance
The European Clean Hydrogen Alliance was established in March 2020 as part of a new industrial strategy for a sustainable and green Europe. The Alliance aims to accelerate phasing out fossil fuels in European industry by implementing the European Commission's hydrogen strategy. The Alliance will also work to initiate production and demand for hydrogen, and to educate and engage society at large.
Read more about the European Clean Hydrogen Alliance: https://ec.europa.eu/growth/industry/policy/european-clean-hydrogen-alliance_en
Biogasen är en viktig komponent i energiomställningen och bidrar också med andra samhällsnyttor. De sex första månaderna under 2020 visar en stabil ökning av andelen biogas i stamnätet, som ägs av Nordion Energi.
- Utvecklingen pekar på att allt fler väljer gröna energikällor. Gasnätet är en viktig del i Sveriges energiomställning och är det effektivaste sättet att transportera förnybar gas, säger Saila Horttanainen, chef Kommunikation och Hållbarhet på Nordion Energi. - Vi hoppas nu att de presenterade förslagen från Gasmarknadsutredningen kommer genomföras och bidra till att fler företag och industrier väljer biogas som ett led i att uppnå sina klimatmål.
Sedan mätningarna startade år 2016 har efterfrågan på biogas ökat stadigt. Andelen biogas ökar inte bara i stamnätet utan också i hela det västsvenska gasnätet (stamnätet samt distributionsnäten). 2019 var andelen biogas i det västsvenska nätet 26,2 % och för det första halvåret 2020 är den 32,2%. En utveckling som visar att biogasen är en viktig energikälla för flera aktörer i södra och västra Sverige.
Gasbarometern är ett verktyg för att kunna redovisa hur andelen biogas utvecklas i det svenska stamnätet för gas. Gasbarometern ger svar på hur stor andel av gasen som handlas är biogas och vilka sektorer som efterfrågar den – samtidigt som det blir en barometer på hur olika marknadsåtgärder och politiska beslut påverkar efterfrågan.
Gasbarometern genomförs tillsammans med de aktörer som handlar med gas i stamnätet: Göteborg Energi, Modity, E.ON, Ørsted och Axpo.
För mer information om Gasbarometern: https://www.swedegas.se/gas/biogas/Gasbarometern
“I’m honoured to have been asked to join the Electrification Commission and feel a responsibility to contribute to the sustainable transition of the Swedish transport sector,” says Hans Kreisel, CEO at Nordion Energi.
Partnering with industry and other stakeholders the Commission will explore the potential for electrification of heavy road transport, shipping and aviation. The possibility of electrification via hydrogen is also something the Commission will study as it is considered to have a prominent role in transforming the transport sector, especially in shipping and aviation. During the summer, the European Commission presented a new strategy for hydrogen as a key factor in the European energy transition.
The aim of the Electrification Commission’s work is to contribute to a significant reduction in emissions from heavy road transport, shipping and aviation. The Commission will be chaired by the Minister for Infrastructure Tomas Eneroth and will consist of 16 members.
Nordion Energi is looking forward to be involved in the Commission’s work along with the other members, particularly in connection to the role of hydrogen.
“The work of the Electrification Commission will be important in accelerating the energy transition. As Mr Eneroth points out, hydrogen will be an important factor in achieving the set climate goals. This especially applies in shipping and aviation, where sector coupling could contribute to a functioning infrastructure. Sector coupling is also important in meeting other societal challenges, such as capacity issues and the transformation of industry,” says Hans Kreisel.
Work will commence immediately and will run until 31 December 2022. The Commission is an advisory body and a forum for the exchange of ideas between the government, industry and stakeholders.
Energy of the future.
Renewable energy is definitely not in short supply – in fact it is infinite. The challenge is to make it available where it is needed, when it is needed, and at a competitive price.
Access to green gas in Sweden must increase. Biogas is the green gas that is in greatest demand and there is a growing need for access to biogas. One way to achieve this is to help biogas producers reach out a larger market by connecting biogas plants to the gas transmission network for storage and transport. This would allow large-scale biogas production to become firmly established, and both heavy transport and shipping would have ready access to renewable fuel. Through investment in liquefied biogas (LBG) we can facilitate the advances that are being made in shipping. We are also working to increase the availability of renewable hydrogen gas, which is an essential source of power as heavy industry endeavours to transform its energy base.
Linking energy systems.
To handle the transition, increased integration of the electricity, gas and heating systems – known as sector coupling – is required. Through greater collaboration with other bodies and the expansion of sector coupling, we will increase the total volume of renewable energy, ensuring security of supply for the foreseeable future.
Ground-breaking technology is available, e.g. Power to Gas, which makes use of surplus energy from weather-dependent energy sources, such as wind power. This energy can then be stored and transported in the gas transmission network.
By making full use of our knowledge and a climate-neutral infrastructure for the transport and storage of gas, we are taking our share of the responsibility for achieving national and global climate goals.
Companies, municipal authorities, and energy companies
Companies use gas as a highly efficient fuel and as a raw material in manufacturing processes. Gas is also used to heat properties, to power vehicles, and to provide heating and act as a carbon dioxide source in greenhouse-based cultivation. It helps professional chefs and restaurant kitchens to create the best for their guests. Ships bunker liquefied gas as fuel. All this is already on offer.
Sometimes gas needs to be supplied at high pressure. We can also arrange this.
And you can always request biogas from your gas provider.
For you as a private consumer
Heat with gas or cook like a professional? You can do both. We can supply gas safely to your home in underground pipelines. No orders to keep track of, no storage, and no transport. As a private consumer we help you all the way – from connecting the gas to servicing your facility. We are on hand when you need us. You can request biogas, which is renewable, from your gas provider.
Nordion Energi AB
Box 362, SE-201 23 Malmö
Riggaregatan 57, Malmö
T: 010-178 84 00