Decarbonizing the energy sector is key to solving the climate challenge
and the Nordics are already frontrunners in creating connected renewable energy systems.
However, we need much more decisive action
to meet the increasing future demand for green electricity.
Today I speak with leading senior executives from the Nordics
about what they believe are the green growth opportunities.
I’m Esben. Welcome to Nordic Net Zero
Today the energy sector accounts for 15% greenhouse gas emissions in the Nordics.
However, a necessary massive shift is required from the Nordics to win the green transition.
If done right, we have a 29 megaton reduction potential at home
and another 365 times that globally.
There’s a high need for partnerships going forward.
We are talking about replacing fossil fuels with renewable energy in a number of industries,
so there needs to be cooperation between energy companies supplying renewable energy
and the various companies in the industry utilizing it.
And, among the energy companies we need cooperation to combine the technologies and skills.
So, the winning concept of the future are strong and dedicated companies cooperating.
There will be a need for some subsidies, but that should be short-term.
It should be to help new technologies come over the high cost in the beginning.
The energy system they’re going to create in this world will be self-financed
and profitable for the companies in the long run with old subsidies.
And what is needed is to find mechanisms of pricing of carbon emissions in a right way
so that we can compete with the existing fossil technologies
and further to have requirements of regulations.
The opportunities for Statkraft in the green shift is 3 folded:
First, we will construct a large number of power plants, almost one per week.
Wind power, hydro power, solar power.
Secondly, we will balance out intermittency of the system,
dominantly by running on hydro power plants and grid stabilizing system.
And finally, we will also deliver other forms of renewable energy:
Green hydrogen, green ammonia, bio fuels and district heating.
The combination of offshore wind and a strong hydro system
will be major contributor to Norway’s own electricity consumption,
but also to be exported to Europe.
The full energy sector across the World needs to be decarbonized
by producing as much electricity as possible from renewable sources.
So, it is the combination of renewable electricity
and electrification that will do the bulk of the job.
But electricity cannot replace all forms of energy.
There needs to be molecules,
there needs to be fuels as well, and that should be also renewable.
Also, the district heating systems needs to be totally decarbonized.
The combination of it all is the energy shift.
We aim to be leading nation in emission-free shipping.
This can be done with battery electric ships and ferries on short distances
and hydrogen-based fuels and biofuels on long distances.
I hope Norway will be a world leader also here.
To power the green transition and ensure reliable renewable energy at affordable prices,
the Nordics must drastically accelerate the build-out
of renewable energy production like wind and solar.
At the same time, massive investments are needed in grids and infrastructure
to shape an integrated renewable energy system.
On top of that, decarbonizing heat will require combination of renewable electricity
as well as green fuels based on biogas and biogenic feedstock.
With the green energy market estimated to be 4.2 trillion euros by 2050,
these actions are not just about cutting emissions at home.
It’s about strengthening our future export potential to create green jobs.