Market of the Month – Nordics
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The Nordics go full throttle with bio-fuels and cleantech!
The Nordic region encompasses Denmark, Finland, Norway and Sweden. It is an attractive and lucrative market for U.S. companies, with 25 million consumers looking for high quality, state-of-the-art technology and reputable products and services from abroad, especially from the United States. The region also serves as a gateway to the Baltic countries and northwest Russia, increasing the number of potential consumers to 80 million.
The Nordic countries are among the world's wealthiest. The region is dynamic, highly sophisticated and very competitive, with a stable political and economic climate. English is widely spoken and commonly used in business, making it easier for U.S. companies to enter the market via one of the flexible distribution channels. U.S. companies active in the Nordic markets rarely encounter trade barriers or market access difficulties.
Each country has unique advantages, but all countries are known for modern infrastructure, efficient telecommunications, transportation and logistics, as well as well-governed societies. Copenhagen, Denmark hosts the largest airport in Northern Europe and is often considered a logistical hub for the Nordic region. Helsinki, Finland is considered a gateway to Russia and the Baltic countries. Oslo, Norway is the Nordic center for offshore oil and gas production, and should not be neglected by clients in the traditional energy sector.
Our Commercial Service Nordic offices and Baltic partner offices work together to make the entire region more accessible as a single market for U.S. companies, and offer customized solutions for companies to develop a Nordic-wide market strategy. Contact us today to learn more.
The Nordic Region responded to climate change concerns early, and use a growing number of solutions for reducing greenhouse gas (GHG) emissions. Nordic companies and their governments express great interest in working with U.S. companies and government officials on clean technology for sustainable infrastructure. Although the use of renewable energy is quite different in each country, it plays an important role overall.
 | Electricity Production: used mostly in Norway and Sweden. Biomass is responsible for 3 percent and wind power for 1 percent (largely in Denmark). Solar power has, so far, played a minimal role. |
| Heat Production: 34 percent is accounted for by biomass, mainly in Sweden and Finland. |
| Transport: renewable energy has played practically no role to date, with fossil fuels remaining an important energy source. Transport accounts for between 18 percent (Finland) and 31 percent (Denmark) of final energy consumption. The situation might change if fuel production based on biomass is expanded. |
In spite of these differences, the Nordic countries all share an expectation of increased energy demand and the need to use more renewable energy sources.
| Bright Green is the U.S. exporter pavilion occurring in parallel with the United Nations Climate Change Conference (COP15) in December 2009. COP15 is the last call for a new global climate agreement (the Copenhagen Protocol) to succeed the Kyoto Protocol which expires in 2012. Bright Green will be the place for official visitors and international press to view U.S. cleantech industry capabilities and real solutions to real problems. Bright Green takes place during the weekend of December 12-13. This event is a unique opportunity to profile and brand U.S. companies as part of the global climate solution. It is an exclusive and ambitious trade fair hosted by the Confederation of Danish Industry. CS Denmark and CS Sweden are bringing U.S. companies to the event and providing programs for the visiting companies. |
| NEREC 2009 is at the North European Renewable Energy Convention in October 2009, Norway Trade Fairs will organize a good opportunity for U.S. companies to network and showcase their products/services. |
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The Nordic group of countries represents the world’s leading region of free-trading nations, with their economies dependent upon trade. Nordic countries have been affected by the current financial downturn, but not to the same extent as in the U.S. Their main economic challenges are the loss of jobs in the worldwide downturn, especially for youth and new entrants to the market, and maintaining a high-cost welfare system without increasing taxes.
| Population: 24.9 million |
| Capitals: Copenhagen (Denmark), Helsinki (Finland), Oslo (Norway), |
| Stockholm (Sweden) |
| Government types: Constitutional monarchy (Denmark, Norway, Sweden), |
| Parliamentary republic (Finland) |
| Languages: Danish, Finnish, Norwegian, Swedish |
| Gross Domestic Product (GDP) (2008): Total Nordic - $1,645 billion (Denmark $370 billion, Finland $281 billion, Norway $481 billion, Sweden $513 billion) |
| Average per capita annual income: Total Nordic - exceeds $45,000 per capita |
| Primary Import and Export Partners: EU, the United States, Asia |
Denmark
Concerns over global warming and energy security have placed renewable energy and CO2 emissions reduction high on the Danish political agenda. Denmark has gone from being fully dependent on sources of foreign oil to becoming completely energy self-sufficient. Thirty years of focused energy policy, implemented after the 1973 oil crisis, have catapulted Denmark ahead of most other nations in the use of renewable energy technology and energy efficiency products. Since the 1980s, the country increased its GDP by more than 75 percent without any increase in energy consumption.
Copenhagen Denmark
Denmark is the world's leading country for wind energy power and equipment production. Windmills provide over 20 percent of the electricity consumption - no other country in the world has a higher percentage of electricity consumption provided by wind power.
Denmark’s government has instituted a new energy policy that will result in a 15 percent reduction in the use of fossil fuels in Denmark by 2025 by doubling the proportion of energy from renewable sources, increasing energy saving initiatives and forcing the transport sector to use more bio-fuels. The long term vision is a total phase-out of fossil fuels.
Finland
Finland is also one of the leading industrial countries in the use of bio-energy. About 27 percent of the country's total energy requirements came from renewable energy sources in 2008. The nation is actively expanding the role of renewable energy in energy production due to the “Finnish Action Plan for Renewable Energy.” The goal is to double the utilization of renewable energy sources by 2025. Finland is also a leader in the use of combined heat and power technology (CHP). CHP plants produce 34 percent of electricity, while condensing power plants produce 18.5 percent of electricity.
Helsinki Finland
International comparisons on environmental sustainability have ranked Finland among the best in the world. Recent estimates of Finnish clean technologies turnover exceed 4.5 billion Euros, representing an annual increase of 15 percent since the end of the 1990s. The country has about 1,300 cleantech companies, and many operate internationally. Traditional Finnish cleantech strengths are in the areas of energy-intensive industrial processes, power electronics, combustion and gasification technologies, combined heat and power production, and biomass-based fuels.
The development of renewable energy in Finland offers opportunities for U.S. companies. American firms can also participate, in cooperation with Finnish companies, in TEKES (National Technology Agency) funded projects. Best prospects for U.S. companies include: technology used for pellet production; heat pumps for private houses; heat exchangers and heat meters; boilers for district heating; heat exchangers, forest chippers; generators; small-scale hydro turbines; and technology to upgrade existing hydropower plants.
Norway
Norway is considered one of the world leaders in the use of renewable energy, clean technology and alternative fuels. In January 2008, the Norwegian government adopted the following ambitious climate change goals:
| Cut global emissions equivalent to 100 percent of current emissions by 2030, aspiring to become a carbon neutral nation, |
| By 2020, reduce global greenhouse gas emissions by the equivalent of 30 percent of its 1990 emissions, and |
| Strengthen Kyoto commitments by 10 percentage points, corresponding to nine percent below the country's 1990-level. |
Norway has a higher share of renewable electricity than any of the EU member states. The Ministry of Petroleum and Energy indicated a domestic target of 90 percent renewable electricity by 2010, necessitating significant renewable electricity production increases. Norway has the world's largest per capita hydropower production, and is the world's sixth largest hydropower producer.
Oslo Norway
Norway’s renewable work has provided opportunities in wind power production, solar power technology, and carbon capture and storage (CCS). Industry experts indicate that Norway could become the largest source of wind power in Europe. Over the next ten years, the Norwegian wind power industry will largely focus on developing shallow off-shore turbines in water 15 to 20 meters deep. Norway’s strong metal and silicon industry has provided the expertise and material needed for commercial development of solar cells and panels. CCS is a pillar of Norway’s climate change strategy and a way to make its enormous gas production more environmentally-friendly. CCS in Norway is for gas-fired plants, not coal plants, and extremely expensive and complex. The Ministry of Petroleum and Energy and StatoilHydro have been working since 2006 to establish a full-scale CCS project at the gas-fired power plant Mongstad. This facility is planned to open by 2014. Another full-scale CCS plant is planned for 2012 at Kårstø, and will store 1 million tons of CO2 in geological formations under the seabed.
Sweden
Sweden is the largest country in the Nordics, and is also the largest consumer of renewable energy with almost 45 percent of its total energy coming from renewable sources. Swedish electricity production is already practically fossil-free, as it is mainly hydro and nuclear power with a growing proportion of wind power. In terms of energy efficiency, the number of low energy construction projects has been growing at a fast pace due to government guidelines and incentives implemented in 2000.
Best prospects for U.S. companies in Sweden are equipment and plant technology for the upgrade of nuclear, hydropower and CHP plants; wind power turbine technology and spare parts; solar, photovoltaic and geothermal technologies; biomass processing technology; natural gas network technology and power grid infrastructure; and renewable vehicle fuel and battery production technologies.
Stockholm Sweden
In recent years, fall and winter storms have caused wide and long-term power outages in several rural areas in Sweden. Power lines have been destroyed by falling trees and snow, and the repair work is time consuming and dangerous. There are also good opportunities for U.S. companies supplying both power grid hardware and technology for the modification of the current grid infrastructure.
CS offices in the Nordic Region produce market research reports to help U.S. companies determine market potential, market size and potential competitors. Visit our site to access our reports.
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Key Contact: Frank Carrico, Regional Senior Commerce Officer
U.S. Embassy Stockholm
Office (+46) 8 783 5346
CS Denmark website
Embassy of the United States of America
U.S. Commercial Service
Dag Hammarskjölds Allé 24
2100 Copenhagen Ø, Denmark
Phone: (+45) 3341 7315
CS Norway website
Embassy of the United States of America
U.S. Commercial Service
Henrik Ibsens Gate 48
N-0244 Oslo, Norway
Phone: (+47) 21 30 88 66
CS Sweden website
Embassy of the United States of America
U.S. Commercial Service
Dag Hammarskjölds Väg 31
SE -115 89, Stockholm, Sweden
Phone: (+46) 8 783 5346
CS Finland website
Embassy of the United States of America
U.S. Commercial Service
It. Puistotie 14 B
FI-00140 Helsinki, Finland
Tel: (358-9) 616 25343
Denmark
Finland
Norway
Sweden