SWEDEN’S ENERGY-INTENSE INDUSTRY
Sweden’s energy-intense industry is vital to its economy. Its forest, chemistry, mining, and steel industries are world-class, modern and competitive. New ideas and innovative technologies are flourishing in other sectors of the economy on the back of advances made in the energy-intense industry.
The energy-intense industry in Sweden
The energy-intense industry is a major employer in Sweden, with some 180,000 Swedes being directly or indirectly dependent on the sector. Factories are surrounded by networks of smaller companies providing transport, goods and other services, which is a key local and regional growth driver. In the Gävleborg region of Sweden, the total added value of the primary sector is approximately 18 per cent of gross regional product (GRP), and the corresponding share for Norrbotten, in northern Sweden, amounts to a whopping 26.5 per cent.
Major export income earner
Sweden’s energy-intense industry has a major impact on the country’s trade balance, accounting for approximately 20 per cent of export earnings in 2021. The ability to sell goods at competitive prices on world markets is vital for Sweden’s energy-intense industry.
Through the export of products made from Swedish raw materials and refined with low carbon emission electricity, the energy-intense industry creates major global climate benefits. If such electricity-intensive production took place in countries with mainly fossil-based electricity production, the carbon dioxide footprint of the final products would be significantly higher.
Effective climate transition
The energy-intense industry is now investing heavily to phase out fossil energy in production processes and transport. Industry roadmaps that set a course to freedom from fossil fuels are ambitious and will be crucial for Swedish and international emission targets to be met. One of the most important ways to transform the energy-intense industry is by securing access to electricity at competitive prices. Every year, Sweden’s energy-intense industry consumes approximately 40 TWh of electricity, a quarter of Sweden’s total electricity production. Electricity costs are a large cost item and can correspond to up to 40 per cent of value added. For electricity-intensive companies, electricity costs can be on par with salary costs. The phasing out of fossil energy will entail at least a doubling of electricity use.