Response to interpellation 2024/25:138 on responsible authority for hydrogen
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
The debate concerned the responsible authority for hydrogen and the expansion of hydrogen infrastructure. KD argues that the government has established four principles for hydrogen that should benefit Sweden, focus on socio-economically beneficial applications, integrate with electricity and heating systems, and safeguard competitive energy prices 1. KD emphasizes that the Swedish Energy Agency coordinates the work and that Svenska kraftnät proposes joint planning in northern Sweden 2 1. S believes that the state should set the pace and proposes that Svenska kraftnät should be the main responsible authority for the expansion of a hydrogen grid across the entire country 3. S argues that Sweden is late with a hydrogen strategy and that a state actor is needed to provide investors with long-term rules of the game 4 5.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Energi- och näringsministern Ebba Busch (KD)
Mr. Speaker! I have been asked if I intend to give responsible authorities new assignments to ensure the role of hydrogen in the 2030 requirement in the renewable energy directive and if I intend to designate a government agency as responsible for an expansion of hydrogen infrastructure for the industry.
On 29 May 2024, the Riksdag decided on a new long-term direction for energy policy (prop. 2023/24:105). The bill contains two Riksdag-binding goals: a planning goal and a security of supply goal. The planning goal means that the Swedish electricity system shall provide the conditions to deliver the electricity needed for increased electrification and enable the green transition. The Government currently considers that Sweden should plan to be able to meet an electricity demand of at least 300 terawatt-hours by 2045, among other things to meet the industry's energy needs for hydrogen initiatives. The use of hydrogen in Sweden is expected to increase significantly in the future, not least through the planned large-scale industrial investments in northern Sweden.
In the energy policy direction proposal, the government also states the political direction regarding hydrogen. The government assesses that fossil-free hydrogen will constitute an important part of Sweden's future energy system. Hydrogen will be a prerequisite for phasing out fossil fuels in industry and will be important for reducing emissions from, among other things, heavy transport. Swedish production of fossil-free hydrogen presupposes a large expansion of fossil-free electricity production. The government also states four important principles that should guide state interventions in the area.
In March 2023, the Government tasked the Swedish Energy Agency with coordinating the work on hydrogen in Sweden. The assignment aims to strengthen cooperation between national agencies and contribute to analysis and discussion in society regarding strategic choices for Sweden as a hydrogen nation. This includes clarifying roles and responsibilities in the hydrogen area, developing national advice and recommendations for the management of hydrogen and hydrogen pipelines, as well as reviewing economic instruments existing in the area. On March 26, 2024, the Swedish Energy Agency presented an interim report on the assignment. This report is currently being prepared in the Government Offices.
In order to, among other things, analyze and ensure the role of hydrogen in meeting the 2030 requirement in the renewable energy directive, the government has tasked the Swedish Energy Agency to, based on existing and announced policy instruments, calculate and submit a proposal for a forecast of Sweden's goal fulfillment regarding the promotion of energy from renewable energy sources and for Sweden's conditions to increase the share of renewable energy in the heating and cooling sector.
The expansion of hydrogen and its infrastructure should be integrated in an efficient way into the electricity system. The Government has therefore tasked Svenska kraftnät, the state-owned enterprise responsible for the electricity transmission grid, to propose how electricity and hydrogen infrastructure can be co-planned to enable the ongoing new industrialization in Norrbotten and Västerbotten counties, where hydrogen use is expected to increase significantly in the future. The assignment is an important contribution to the Government's strategy for the new industrialization and the societal transformation in Norrbotten and Västerbotten counties.
In summary, many government initiatives are underway to facilitate the development of hydrogen in Sweden. The Government has presented a political direction for government interventions in the hydrogen area based on four principles, which should be monitored so that they can be adjusted based on changed conditions and needs.
Isak From (S)
Mr. Speaker! I thank the Minister for Energy and Industry for a substantial and lengthy answer.
Let me begin by saying that Ukraine is defending everyone's freedom. For 1,000 days, they have worked and fought for their own existence. Right now, they are repairing their energy systems, which are shot to pieces every day. This is important to keep in mind.
Europe built a dependency on Russian gas, which sabotaged the energy system not only in Germany but in large parts of the EU. If we believe that we can be dependent on Russia, Iran, Saudi Arabia and for this part China, for rare earth metals and a bit of other things, and if we believe that the new president in the USA will facilitate things for us, we are probably wrong. We need to build sustainable energy systems here. In that case, hydrogen is an important part, and hydrogen is obviously dependent on a functioning electricity system.
Just as the 2030 target points out in the renewable energy directive, requirements are set to expand. Right now, we have what is abbreviated as TSO, the transmission system operators for hydrogen, and in Sweden, it is private. The question based on the Minister's answer becomes: Should the state not set the pace?
I am indeed from Västerbotten and think it is important that the government points out Västerbotten and Norrbotten, but it is about a transition also for industry in the rest of the country. Should we not ensure that, for example, the chemical industry on the west coast gets access to hydrogen, which can hopefully be produced with offshore wind? Then a grid is needed.
Many expect the government to point out a direction. Many are standing and waiting and want to invest in this. They believe in the green transition and that hydrogen is important. But it is lagging a bit at the Government Offices. It is at least something that is moving a bit slowly.
From the Minister's response, it sounds as if one is still on the way and that assignments are being given to the authorities and to Svenska kraftnät. But let's go all the way! Give Svenska kraftnät the assignment to be the main responsible authority for the expansion of a hydrogen grid in Sweden!
Energi- och näringsministern Ebba Busch (KD)
Mr. Speaker! I will start at one end and return to the more specific questions. Isak From and I usually share the same view on quite many issues that are important for Sweden AB. We do not talk as much about hydrogen as we should in this country. Now that the opportunity is given, I want to talk about the four principles that are governing that work.
Firstly, the use of fossil-free hydrogen shall contribute to the transition of fossil-dependent energy systems and industrial processes. It shall benefit Sweden. There are some ways to expand hydrogen systems that will only benefit other countries. I believe that would be unwise in this situation.
Secondly, the use of hydrogen should focus on applications that are socially and economically beneficial where more resource-efficient and cost-effective alternatives are lacking. We shall, therefore, not push it just because it is possible.
Thirdly, hydrogen production shall be integrated effectively with the electricity and heating systems and contribute to a secure energy supply in Sweden. There is potential here to solve wind power's major problem. Wind power can provide electricity, and it can do so fairly quickly, but it has great difficulty delivering power – that is, providing a steady supply of electricity year-round, which would allow us to connect more households and industries. It could be interesting to pace them together.
For the fourth, hydrogen infrastructure shall be expanded in a way that facilitates the climate transition and protects Sweden's competitive energy prices.
I move on to the question of whether the government cannot simply point with the whole hand. It is rare that I receive the criticism that I am unclear, and I think we are pointing quite clearly with the whole hand here as well. But before we have a sensible basis, it is unwise to just say on a hunch where it should land. I may have theories about what will be most appropriate and what will not, but I want the basis in place first.
The Swedish Energy Agency has been tasked with coordinating the work with hydrogen in Sweden. Today we have been underscored that we should not bicker about the past, but I was a bit surprised that one had not come further with the hydrogen issues and the hydrogen strategy when I entered the Government Offices. Now, the Swedish Energy Agency has at least received the assignment, and Svenska kraftnät has been tasked with submitting proposals on how electricity and hydrogen infrastructure can be co-planned in Norrbotten County. Therefore, I believe we have more to start from now when it comes to navigating and establishing our position even more clearly.
Isak From (S)
Mr. Speaker! The Minister says that the report from the Swedish Energy Agency is being prepared in the Government Offices. It is probably quite many who expect that preparation to "tacklar på lite", to use the Minister's expression.
Mr. Speaker! I visited Storuman yesterday. I primarily met with Vattenfall to look at their reconstruction of the pump power plant in Blaiken. Fully developed, it can, together with existing wind power, deliver as much as an entirely new nuclear power plant.
At the same time, more stakeholders are asking whether a hydrogen plant should be built in connection with the wind farms that either already exist or are planned to be constructed. They want long-term rules of the game. They are standing there with the stock market and saying that they believe in this. But that also requires a proactive government that says that hydrogen will be a contributing part of Sweden's energy supply. That requires someone who can and wants to be responsible for the grid, but right now there is only one private actor.
We believe that a state actor should have the primary responsibility - not only in northern Sweden. The chemical industry on the west coast wants to invest. The mining technology companies in Sandviken want to invest and see hydrogen as an important part. In several places in the country, it is considered that a hydrogen strategy is significant.
It may be that Sweden has been a bit slow. Other countries have gone far ahead. Sweden is almost the last EU country that does not have a hydrogen strategy. That obviously sends a signal to those who want to invest. I have to ask the minister whether they should invest in this country or put the money somewhere else. We think they should put it here.
Energi- och näringsministern Ebba Busch (KD)
Mr. Speaker! The short answer is: Welcome to Sweden with your hydrogen investments!
It required a change of power and a bourgeois government to establish the main principles. Isak From asked if hydrogen is important and what signals are being sent. Yes, what signals were actually sent during the eight years when you didn't have any principles for hydrogen? We have at least decided on such, like, two assignments to authorities, who are now working on this.
The assignments are pushing forward and can be completely decisive in cleaning up Sweden's enormous power capacity problem, which every month causes Sweden to lose hundreds or thousands of jobs, primarily in power area 3 and 4. This is because we have electricity but at the same time a large capacity shortage as a result of how one has navigated energy issues in general. Hydrogen can become a very important part in solving that problem and go hand in hand with, for example, wind power. This is therefore a prioritized issue for the government, and I am pleased that we can point with the whole hand based on this.
Mr. Speaker! I find it somewhat fascinating that one dares to say that the state should rule and own everything, before we have had the basis in place.
Isak From (S)
Mr. Speaker! The Swedish Energy Agency is very clear in its report to the government that a clear regulatory framework is required and that an expanded hydrogen infrastructure would create both flexibility and economic sustainability in the energy system. We are well aware that several of the wind power companies have not fully had economic sustainability in their calculations. It is required that one can produce, for example, hydrogen for the industry when prices are low.
I do not believe that a very large number of vehicles in the future will be powered by hydrogen, even though the industry itself says that approximately 30 percent of heavy transport after 2050 will not run on electricity. Hydrogen could be a part of that.
Regarding the manufacturers, both BMW and Toyota say that hydrogen is part of the future. But if hydrogen is really to become part of the future, it will be required that functional networks and refueling stations are in place after 2030. It would be an advantage if we also had a functional state-owned network in place then. It would send the signal that we believe in investments in hydrogen. Many therefore expect that the preparations taking place at the Government Offices will gain momentum.
Energi- och näringsministern Ebba Busch (KD)
Mr. Speaker! I want to start by thanking Isak From for the interpellation.
The government has put forward more than 50 measures to secure Sweden's energy supply in the acute, short, medium, and longer term. The 50 measures primarily concern now until 2030. We have an acute situation now, and in that case, we cannot wait for the nuclear power that we need but which will come much further ahead.
In accordance with the energy policy proposition's four principles for hydrogen, the government also continues with more measures to facilitate the development of hydrogen in Sweden. It is an important issue for us.
Extensive funds have also been allocated to expand competence and infrastructure for the production and consumption of hydrogen. I am thinking, for example, of increased funds to EI for new regulation of electricity and gas networks.
We have increased the energy research grant by 200 million in addition to the 1.6 billion that already existed. We have also added to Klimatklivet as well as Industriklivet and the charging infrastructure for heavy traffic, including hydrogen refueling stations. This was both extended and expanded in the previous budget bills.
This is an important issue, and I think we are maintaining a high pace today. I look forward to us being able to return with further measures for hydrogen.
I want to thank you for an interpellation debate that shows there is a broad understanding, from right to left, of the need for more power so that our heavy industry can make its transition. I accept the challenge to increase the pace to enable this.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.