Restarting Sweden with industry transition
The Swedish government released its autumn budget last week. The budget proposal included investing nearly SEK 10 billion in industry transition initiatives. But how will this investment impact on the sector, and how could it affect our Cluster members? We asked Anders Fröberg from Borealis and Henrik Brodin from Södra to share their views on the proposed investment.
Anders Fröberg, CEO Borealis Sweden:
What are your views on the proposed investment?
We think it’s great that the transition in industry and transport is to play a central role in restarting the Swedish economy. We’re particularly pleased to see a plastic recycling refinery included in the climate transition, as a circular model is necessary to reach our climate goals. It’s extremely important to take a circular approach to plastic. This material in itself is already crucial in many areas in terms of creating a sustainable society and reducing CO2 and other emissions. Providing credit guarantees to facilitate funding is also positive overall. Huge investment is necessary to make the transition, and the government and businesses must collaborate and jointly take responsibility for driving progress forward.
Where can the investments do the most good?
By promoting investment in the climate transition in Sweden. A lot is happening in the European chemical industry, and it’s important to propose attractive initiatives that bring investment to Sweden. Sweden is seen as a role model in sustainability, and we must show that we can put words into action by offering investments that really make a difference.
Such investments might regard technology, cooperation and new raw materials. It’s also important that we have access to electricity produced and distributed at competitive prices, since this is a key factor in enabling initiatives to promote the transition.
In addition, more needs to be done to bring about faster and more reliable processes for gaining environmental permits and planning permission. We all share the same goal: to create a sustainable society. We need to work together, maintain open dialogue between government and industry, and be able to trust in each other’s expertise and ambitions.
How could the investments affect Borealis and your own transition?
We work every day to find new solutions and improve our products and production, in order to reduce our environmental impact. We know our products are important in the transition. We face challenges regarding raw materials, energy and the production of our products. It’s very positive that we’ve finally reached a point today where the government is recognising the opportunities in industry and wants to collaborate with us in taking the next step forward.
We’ll probably apply for permission to start chemical recycling of plastics in Stenungsund. We’ll also evaluate whether credit guarantees are of interest to us.
Henrik Brodin, Business Developer, Energy, Södra
What are your views on the proposed investment?
We think the initiative includes many positive elements. Most importantly, it aims to establish a clearer connection between climate policy and business policy. This is absolutely crucial if we are to achieve a transition that can inspire the rest of the world.
Unfortunately, we feel that it falls short with regard to the substitution effect, i.e. the effect of replacing fossil fuels with renewable fuels, something that is central to bioeconomy development and the single most important part of the transition. It’s good to reduce emissions from all industries, but the real problem is still fossil fuel extraction. Investment needs to be made in a coherent bioeconomy. This should include timber construction, which is the motor of the bioeconomy.
Where can the investments do the most good?
Investments must be prioritised in areas with strong potential for generating jobs and beneficial refinement processes in Sweden, as well as reducing emissions. Biorefining is a clear example with enormous potential for Sweden. Once we’ve got the first flagship factories up and running properly, this sector can be expanded to create jobs and climate benefits. To achieve optimal benefit, the risk must be distributed for the pioneers that are paving the way and raising the TRL level. Once the technology is widely proven, upscaling can be done on a market bases.
How could the investments affect Södra and your own transition?
It is very positive that industrial focus is being extended to include industries that reduce other players’ emissions, such as biorefining. This will benefit our jointly-owned company Silva Green Fuel where we are in the process of building a demo plant in Norway to produce biofuel from solid biomass. Once we decide to commercialise these activities, we can consider building a similar facility in Sweden. There are also other potential business opportunities regarding the extraction and refining of more by-streams from our pulp and sawmills. We would also like to see recycling initiatives broadened to include not only plastic but also other recycling flows such as textiles
Read more (Swedish)