Heavy industry giant Yara is calling for the government to step in and reward municipalities that invest in wind power.
Yara International, a Norwegian industrial company, produces fertilizer on six continents.
They are also major suppliers of greenhouse gases.
Yara’s ammonia factory in Heraia, outside Borskran, is considered Norway’s largest source of greenhouse gas emissions on land.
The plant must now switch from gas to electricity to reduce emissions. Such changes are critical to reducing Norway’s total emissions and meeting climate targets within seven years.
With the price of gas and electricity skyrocketing, the works started before the New Year.
Industry faces a choice – they must renew themselves and go green, but that requires cheap, renewable energy. Yara now warns against industrial death.
– It’s dramatic. Deputy CEO Lars Røsæg says that if we do not have access to surplus and power in Norway, we will lose our competitive advantage.
High gas prices have already led Yara Europe to drastically cut ammonia production. According to Børsen. The first reports on the Norwegian industry have already arrived Closing in the face of high gas and electricity prices.
– Disempowerment leads to loss of jobs and opportunities to create new ones. We can turn it around, but we don’t have time. We have to change that now, says Røsæg.
Norsk Industri has warned Norway needs more electricity generation Achieve climate targets and improve jobs in industry.
– It’s fine with the sea breeze, but…
The deputy CEO is throwing himself into the debate about Norway’s energy future, asking the government to support the large-scale development of offshore wind power.
Now the Deputy CEO will ask the government to release more of the revenue to the municipalities. Wind Energy Industry They say they have to pay more.
– It’s great to have sea breeze, but we know it will take a long time. Onshore wind power is fast and key to helping us meet our climate goals, Roszak says.
– Is this the real situation? Outsource more business to other countries or close?
– In Norway we have big, important green projects, Røsæg says, which will create new business and create new jobs in the country.
Heads of state and oil majors agree The power crisis will last for years.
Deputy CEO says Yara’s plans haven’t changed due to power crisis
– But structural conditions are important. This can only be done with the cooperation of politicians.
Equinor CEO Anders Opedal tells E24 Green transition can be set back due to power crisis.
Expect space shortages
The reason the Yara boss got involved was several reports about expected power shortages in Norway.
Statnett recently published area plans for northern Norway, which show that the power grid has no room for more industrial adventures than what has already gone ahead. Meanwhile, southern Norway is expected to experience a power shortage within four years.
At the same time, plants such as Yarra’s ammonia factory in Porskran have to reduce their greenhouse gas emissions. They depend on replacing gas with electricity.
– To do that we need large-scale power generation development, says Rozak.
In addition to saving electricity and upgrading existing hydropower plants, offshore wind power can rapidly increase access.
– We cannot achieve this without the municipalities with us. This should be done together with the municipalities and left to them rather than today. They need to get more income and they need to get jobs, says Røsæg.
– Why wind power on land?
– It is profitable without subsidies, and can realize large scale faster than many alternatives.
Today’s tariff for wind power
In the past, municipalities did not make money from wind farms beyond property taxes and proprietary contracts.
As of this summer, the government has imposed a tax of one øre per kilowatt hour on wind power producers, which is to be distributed to host municipalities.
Today, NVE does not process applications from developers where municipalities do not say “yes”.
In many cases, wind companies have provided additional revenue to municipalities beyond what is required by law. After that the municipalities have to negotiate.
The ruling parties, the Labor Party and the Center Party, are now negotiating the state budget. According to VG, they aim to come up with a solution that will increase the income of municipalities through wind power.
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