At the couple in Tana, the machine grinds yet another cup of coffee. Down in the basement, the washing machine runs its faithful course, and the Tesla in the garage is filled up with cheap electricity. In addition, the family barn is full of electrical machines and instruments. – We use a total of 180,000 kWh of electricity a year. It costs us around NOK 100,000, Markus tells news. Both have heard a little about what is being planned in the northern Swedish mining town of Kiruna. – Of course we fear that this could make electricity much more expensive for us, says Ellen Ingvild. Milliardgruve will use only electricity More than 60 miles further south, Stefan Savonen (50) sits and plans an electricity consumption that seems completely beyond the Tana family’s consumption. – We will use almost twice as much as the whole of Denmark uses today, says Savonen to news. ENERGY MANAGER: Stefan Savonen is the energy and climate manager at LKAB. Photo: EILIF ASLAKSEN / news He is head of energy and climate at the state-owned mining company LKAB. Since 1890, LKAB has extracted iron ore underground in Kiruna and the areas around the city. Last year, turnover was almost SEK 49 billion. The company has never made so much money. High ore prices meant that LKAB was left with a profit of almost NOK 29 billion. – With this, we can earn even more, and at the same time reduce our own climate emissions to zero, says Savonen, holding up a fist-sized dark gray lump. It’s called sponge iron, and it’s what makes LKAB need 20 terawatts (TWh) of electricity a year in just eight years. And in 2050, the need will increase to a staggering 70 TWh. Tracks more expensive electricity in Norway Director Per-Erik Ramstad of Alta Kraftlag follows closely what is happening in the neighboring countries. – We are in a joint power system with Sweden and Finland, and that will have a strong impact up here in the north, he replies when news asks what might happen when LKAB starts electrification in full. PRICE: Per-Erik Ramstad is director of Alta Kraftlag. Photo: EILIF ASLAKSEN / news He believes this could lead to much higher prices in Finnmark and Northern Norway because electricity will become scarce. – How high the prices will be, and whether there will be such an extreme situation as we have in the south now, I cannot say anything about that now. There was also no one else who could say anything about the prices that are now, a year ago. But it is clear, there will be much higher prices in the future, says Ramstad. According to the power team director, LKAB’s need of 70 TWh corresponds to roughly half of all water and wind power production in Norway today. Want more electricity from Norway The reason why LKAB needs enormous amounts of electricity is that they are to produce hydrogen. It will in turn be used to make all their operations fossil-free. The energy and climate manager at LKAB makes no secret of the fact that they need all the power produced for the conversion. Today, the mining giant uses 2 TWh a year, and this is to be increased to 70 TWh within 28 years. – This quantity does not exist, but it is not today that we need all this power. In our region there is currently a power surplus, but we need to build out much more to keep this surplus. It will be solved with land-based wind in northern Sweden, says Stefan Savonen. GIANT: In 2021, LKAB earned almost SEK 29 billion. Photo: EILIF ASLAKSEN / news He knows that LKAB’s power needs will affect the situation in both Norway and Finland, as the countries are in a common power market. – Naturally, we are interested in power being able to come from our neighboring countries. Today, we do not have the connections that can make this possible. Here we are talking about new 400 kWh lines that must come here to the ore field. Of course we want more electricity from Norway than we have today, says Savonen. Will do everything to keep prices down Then comes the LKAB summit on what can give hope to northern Norwegian electricity customers. For the company, it is important to keep costs as low as possible, and this also applies to the price of electricity. For LKAB itself is also a customer. TO NORWAY: Ore train on its way from Kiruna to Narvik. Photo: EILIF ASLAKSEN / news – If you are afraid that prices will rise, then we are going to be an enormously large player who will do everything we can to keep prices down. – Our hope is that we will be able to balance the price levels so that you don’t get the great volatility that we have today. It will be our competitive strength by building on the fact that we can keep prices low. – So a normal Norwegian electricity customer in Northern Norway does not need to be concerned that LKAB needs 70 TWh a year? – I actually don’t think so. It might have been the other way around. We can help balance the market. The important thing is that you get to build power generation. That’s what keeps prices down, says Stefan Savonen. – Can’t stop cooking and driving ELECTRIC CAR: Ellen Ingvild Heiberg saves a lot by driving an electric car. Photo: EILIF ASLAKSEN / news In Tana, Ellen Ingvild Heiberg hopes that the LKAB chief will be right. – We cannot stop washing clothes, cooking and driving even if the electricity becomes more expensive. Our wish is of course to keep today’s low price level here in the north, she says.
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