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Environmental groups take Norway to Supreme Court over Arctic oil

Two environmental groups said on Monday they were trying to take the Norwegian state to the Supreme Court for granting oil licences in the Arctic.

Environmental groups take Norway to Supreme Court over Arctic oil
File photo: AFP

Greenpeace and Natur og Ungdom (Nature and Youth) say oil drilling licences granted to companies in 2016 should be cancelled because they violate Norway's constitution, which includes a right to a healthy environment.

They say emissions from oil activities and fossil fuels jeopardise the objectives of the Paris Agreement, which aims to limit warming from climate change to less than 2 degrees Celsius, compared with pre-industrial temperatures.

However, the organisations have already suffered two legal setbacks in both an Oslo district court and an appeals court, which ruled that their concerns were hypothetical as there was no certainty fossil fuels would be discovered.

However, the appeals court judges said CO2 emissions from Norwegian oil should be taken as a whole — meaning not only emissions from the production but also from the use of oil and petrol even outside the country.

“Opening up the pristine areas in the Arctic for oil drilling in the time of climate emergency is not acceptable,” Greenpeace Norway head Frode Pleym said in a statement.

“The use of oil and gas produced in Norway and burned elsewhere contributes to 10 times the domestic emissions of Norway.”

As the largest producer of oil in Western Europe, Norway is struggling to break its dependence on hydrocarbons, which made the country rich and enabled it to amass a sovereign wealth fund of more than one trillion dollars.

“The world has already found more oil, coal and gas than we can burn if we are to avoid catastrophic climate change,” Therese Hugstmyr Woie, head of Natur og Ungdom, said in a statement.

“Of course Norway has a responsibility not to produce more oil than the climate can support.”

The case concerns 10 licences issued for exploration drilling in the Barents Sea.

The beneficiaries include the Norwegian Equinor (formerly Statoil), the Americans Chevron and ConocoPhillips and the Russian Lukoil.

The Supreme Court is expected to decide whether or not to hear the case in the coming months.

READ ALSO: Blow to Norwegian environmentalists as lawsuit over Arctic oil defeated

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

READ ALSO: 

The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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