
Anna Borg
CEO of Vattenfall
From technologies to business models
Vattenfall, one of Europe’s largest producers of electricity and heat, aims to decarbonise its energy production and is also helping energy-intensive industries along the way. Anna Borg, CEO of Vattenfall, shares her thoughts on how this is possible.
Vattenfall is one of Europe’s largest producers and retailers of electricity and heat, with its main markets being Sweden, Germany, the Netherlands, Denmark, and the UK. The company has ambitious goals: by 2040 they intend to have stopped the use of fossil fuels (e.g. coal, oil, natural gas, or peat), or any fuels derived from fossil fuels (e.g. blue hydrogen) in their own primary electricity or heat production.
In an interview with Vattenfall’s CEO, Anna Borg, AFRY Insights looks at the solutions and direction needed to generate fossil-free energy.
Vattenfall has committed to enabling fossil freedom that drives society forward. You’re also part of the First Movers Coalition (FMC), an initiative by the World Economic Forum. How are you leveraging the membership and advancing climate-friendly technologies?
Anna Borg: “We can only close in on the 1.5º C target if we jumpstart the market for disruptive near-zero or zero-carbon technologies and make them as competitive as existing carbon intensive solutions.
“Vattenfall, together with FMC, uses combined purchasing power to accelerate investment in developing goods, services, and technologies needed for the energy transition, particularly during the difficult demonstration and early deployment phases. Vattenfall most recently committed to purchasing near-zero cement, adding to the sectors steel, aviation and trucking.
Vattenfall is among the first energy companies globally to have its Net Zero targets for 2040 approved by the Science Based Targets Initiative, which confirms that our targets are in line with the ambitions of the Paris Agreement.
In addition to green energy production methods, how is Vattenfall looking after full-life cycle sustainability in your production and transmissions assets?
Anna Borg: “Sustainability drives our strategy and is key in our purpose, and that is what will drive competitiveness.”
“To reach Net Zero, everything we buy and everything we sell will also have to be fossil free. 2040 is not so far away, and our supply chain decarbonisation needs to accelerate. Therefore, we have set a 50% CO₂ reduction target for the procurement of goods and services and are increasing the share of biogas supplied to those of our customers who are currently transitioning from fossil to fossil-free gas.”
Vattenfall is also involved in numerous R&D projects, for instance, recycling parts from windmills, like used turbine blades being reused for construction purposes, and the recently showcased turbine house converted into a tiny house for compact living.
Decarbonisation is a major focus for many energy-intensive industries. How is Vattenfall working with clients and partners to help them achieve their goals?
Anna Borg: : “We have set out to be a leader in energy transition, to initiate and inspire, or enable others on their decarbonisation journey."
"The energy transition is not just a technological challenge, it’s not the least a financial one. The business models of tomorrow will not look like the ones we have today."
"To close the gap between ambition and reality, we must mobilise and channel investments and forge partnerships across regions and sectors."
Vattenfall collaborates in many shapes and forms. Its business partnerships range from large-scale offshore wind projects with the German chemical offtaker BASF to pioneering fossil-free steel production in the joint venture HYBRIT together with the steel company SSAB and the mining company LKAB. Additionally, Vattenfall has an agreement with the industry collaboration Industrikraft, currently gathering ABB, AFRY, Alleima, Billerud, Epiroc, Hitachi Energy, Höganäs, SAAB, SSAB, Södra, Vectura, and Volvo Cars, which identifies and evaluates conditions for joint investments in new fossil-free power production in Sweden.
People in the energy industry often say that "there’s no green energy transition without grids". How do you see the role of grids, and what can be made to ensure sufficient investment and better cross-region/ country connections?
Anna Borg: “The electricity grid is a critical resource for our entire society, and naturally something we pay a lot of attention to when it comes to expansion, maintenance and development.”
“As we increase our investments in fossil-free energy production, this will require more grid capacity. Already being the grid owner in Sweden who invests the most per customer, we are currently increasing our grid investments to 8 billion SEK annually, and an average of 10 billion SEK annually in our 15-year plan.”
“Ensuring that electricity is being distributed efficiently both across and between regions requires a sufficient grid without major bottlenecks. That will require investments both in the transmission grid and the distribution grid. And that we utilise the grid capacity as efficiently as possible. Flexibility on the customer side will also be key.
Public and political support play a crucial role in the energy transition. What role do you believe government policies and international collaboration should play in accelerating the shift to green energy, and how does Vattenfall engage with these stakeholders?
Anna Borg: “Energy production and distribution are large-scale investments that represent an important part of the infrastructure. Therefore, the political and regulatory landscape has a natural impact on our business.”
“There is no quick fix for the implementation of an energy transition. It requires that business, the energy industry, and politics pull in the same direction, and roughly at the same time.”
“Firstly, the industry can contribute by being buyers of the fossil free electricity production that is being expanded, investing and contributing with flexibility in their own production whenever possible. Secondly, the energy industry can contribute with the build out of fossil-free electricity production and electricity grids, as well as smart solutions for customers, to jointly think about new business models end to end. And thirdly, politicians and authorities can contribute by offering long-term frameworks to enable the transition, not the least from an investment perspective”
As CEO, how do you promote a culture of innovation and sustainability within Vattenfall to not only meet the company’s sustainable goals but also inspire a broader transformation in the energy industry?
Anna Borg: “I'm convinced that it is possible to live a modern, comfortable life with an acceptable sustainable footprint. But to get there, we need to have a business perspective where you can build business models that there is actually a demand for.”
“I tell my team at Vattenfall that we have both the responsibility and the opportunity to really make an impact. By providing attractive, profitable and sustainable solutions.
I am convinced that is the way to achieve a transformation of this magnitude. We are a business with extremely dedicated and skilled people working for fossil freedom. With that as our foundation, we should be and we are a leader in the energy transition.”
And finally, what development are you most proud of during your time at Vattenfall?
Anna Borg: The fact that we are able to combine a transformation of our own energy production, which is now almost entirely fossil free, in close co-operation with our customers to develop new solutions and business models at the same time. And the commitment my colleagues display. They are amazing.
