Vattenfall and Industrikraft have signed an agreement to identify and evaluate the conditions for joint investments in new fossil fuel-free power production in Sweden.
The energy company and the newly established industrial collaboration, which consists of Alfa Laval, Boliden, SKF, Stora Enso and the Volvo Group, will work together to investigate the conditions for joint investments in new electricity production.
The partnership includes issues such as a framework for co-investment, identification of projects and assessment of feasibility in terms of permits, grid connections and profitability.
Work is now beginning on concrete measures to meet the demand with a supply that paves the way for Sweden’s competitiveness as an industrial nation.
The agreement between Vattenfall and Industrikraft runs until further notice and covers all fossil-free power sources.
It is estimated Sweden will need to double its fossil-free electricity production in the coming decades to meet industry’s and society’s increased demand for electricity in order to succeed with the transition.
Demand is primarily driven by indirect electrification of industry, direct industrial electrification, and transport.
New investments in electricity production are key to enabling the electrification of industry in the country and securing a balance between new industrial demand and new electricity supply. The collaboration includes all fossil-free power sources.
“Sufficient new electricity generation to ensure the competitiveness of Swedish companies has long been high on the agenda in our dialogue with industry,” said Vattenfall president and chief executive Anna Borg (pictured).
She added: “We look forward to working with Industrikraft to enable investments in new fossil-free electricity production, which is needed both in the short and long term.
“Vattenfall brings expertise about the energy market, the electricity system and the various types of power.
“Together, we can create the conditions for a healthy long-term investment climate.”
Industrikraft chairman Tom Erixon said: “Industrikraft has been formed to support the work of shaping the future energy system in Sweden and a platform with Vattenfall will be important for advancing that work.
“As more of the Swedish industrial companies join Industrikraft, the co-operation agreement becomes of strategic importance for both parties.”