“We specialise in infrastructure for gas and electricity. We realise that we must act quickly, think in new ways and work closely with others. Not only with suppliers and customers. The wider public also needs to support gas if network expansion is to succeed,” said Carolina Wistén.
The energy company Nordion Energy was established in 2020 to accelerate the transition to green energy. Nordion is the parent company of Swedegas, which was founded by the Swedish government in the 1970s to introduce natural gas via a pipeline from Denmark to Sweden. This initiative led to a gradual expansion in south western Sweden that continued into the early 2000s and today supplies major industries with both energy and raw materials.
Through Swedegas, Nordion Energy is the transmission system operator for the Swedish gas grid. The gas grid in western Sweden distributes approximately 6.5 terawatt hours per year, using a mix of natural gas and biogas. Nordion Energy estimates that gas demand will increase to around 10 terawatt hours by 2030, with the ambition that all gas supplied to the grid by then will be fossil free.
Investment and expansion
Nordion Energy is making substantial investments to increase the share of biogas in the grid. At the same time, the company is working to enable hydrogen transport in several locations, which requires significant expansion of the gas grid in Sweden.
“Our goal is to become the first gas grid in Europe to be 100 per cent green. Why is this important to us? It is because many of our customers need to succeed in their own transition journeys. If we do not provide green, non fossil solutions, our infrastructure will quickly become obsolete and customers will choose other alternatives.”
This ambition is in line with EU objectives under the European Green Deal, which aims for Europe to become climate neutral, as well as the REPowerEU plan to reduce dependence on Russian fossil fuels and shift towards cleaner energy sources.
“It would be costly for Sweden if solutions are not in place,” Carolina Wistén noted.
Policy instruments matter
The share of biogas in the western Swedish gas grid has increased significantly over the past decade, from 7.6 per cent in 2016 to a peak of 37.5 per cent in 2022. An economic downturn combined with high energy prices and the removal of tax exemptions led to a decline. Carolina Wistén emphasised that policy instruments play a decisive role.
“We are currently down to around 25 per cent. That is why we are very pleased that the tax exemption is being reinstated. I believe biogas use will increase again, as customers are keen to purchase biogas in order to achieve their transition goals.”
The volume of Swedish produced biogas supplied to the western Swedish gas grid has remained relatively stable at around 400 gigawatt hours per year since 2017. Demand for biogas exists, and increased input of domestically produced biogas could meet this demand while also strengthening security of supply in Sweden.
Public transport is being electrified
“Within public transport there is a strong shift towards electrification, but the maritime sector, heavy transport and industry will continue to need biogas. Not everything can be electrified.”
According to Carolina Wistén, policymakers need to understand the benefits of biogas and ensure long term, stable conditions so that producers can invest confidently in Swedish biogas production.
“It is environmentally beneficial to make use of the energy contained in various substrates. It is important for security of supply of both energy and raw materials, and it also provides an opportunity to strengthen Swedish agriculture. Furthermore, it allows us to make better use of our own natural resources rather than importing natural gas.”
The Port of Gothenburg
Carolina Wistén also outlined plans in the Port of Gothenburg, including a facility for converting biogas into liquefied biogas, LBG, and the need for hydrogen pipelines to serve maritime transport as well as mining, steel production and other industries in northern Sweden. Achieving Sweden’s target of net zero emissions by 2045 will require very substantial investments in the transition, both for Sweden as a whole and for Swedish industry.
“As a transmission system operator, we have a responsibility to ensure that existing infrastructure is used effectively, while also being prepared to invest in new infrastructure. All energy sources will be needed for Sweden to reach its 2045 targets. However, when it comes to the existing gas grid, biogas will be crucial in enabling a fully green system,” Carolina Wistén concluded.
