Vattenfall, Swedish energy giants and other industry leaders join forces to invest in new energy sources

The companies announced on Tuesday that Sweden's largest utility Vattenfall will explore joint investments in new fossil free power production to meet the growing electricity demand as part of decarbonisation efforts.

Vattenfall CEO Anna Borg said: "We've known for a long time that there is an increase in demand to electrify industries directly or indirectly as part of the Green Transition."

Vattenfall, along with Industrikraft, a group that includes Alfa Laval Boliden SKF Stora Enso, Boliden and the Volvo Group, is investigating how, when, and what investments they can make together.

Borg stated that the annual Swedish power demand will double by 2045 from 140-150 Terawatt Hours (TWh), as Sweden enters its next phase of industrialization. This will require hundreds of billions in Swedish crowns to be invested, Borg added.

She said that timing is crucial for everyone to remain competitive and profitable.

Vattenfall's CEO said that fossil-free generation is made up of nuclear, wind, and solar energy, which each face their own challenges, whether it be in terms of cost or grid connection.

A commission found that Sweden plans to build up to 12 nuclear reactors between 2045 and 2050, at a cost of around 400 billion Swedish crowns (about $39 billion). The government has offered to share the investment risk.

Borg stated that the lack of clarity on grid connections is holding back offshore wind development.

Industrikraft was founded as a way to secure long-term Swedish energy supply. A spokesperson for the group said that several other companies were interested in joining.

(source: Reuters)