Swedish energy company Vattenfall and newly formed industry collaboration Industrikraft will work together to investigate the conditions for joint investments in new, green electricity production in Sweden.

Industrikraft currently consists of Alfa Laval, Boliden, SKF, Stora Enso and the Volvo Group, which will work towards meeting Sweden’s increasing power demand in a way that ensures its industrial competitiveness.

The collaboration with Vattenfall aims to address issues such as a framework for co-investment, identification of projects and assessment of feasibility in terms of permits, grid connections and profitability.

It is estimated that 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.

Demand is primarily driven by indirect electrification of industry, direct industrial electrification, and transport. Therefore, new investments in electricity production are key to enabling the electrification of industry in Sweden and securing a balance between new industrial demand and new electricity supply.

Anna Borg, president and CEO of Vattenfall commented on the announcement in a release: “Sufficient new electricity generation to ensure the competitiveness of Swedish companies has long been high on the agenda in our dialogue with industry. 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…Together, we can create the conditions for a healthy long-term investment climate.”

“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,” added Tom Erixon, chairman of Industrikraft.

This article was originally published on Power Engineering International