In December 2023, nearly 200 countries convened at the United Nations climate conference COP28 and reached an unprecedented international climate agreement to transition away from fossil fuels in energy systems in a just, orderly, and equitable manner to achieve net zero by 2050.
Working at an energy company at a time like this is both a privilege and a challenge. A privilege, because the energy transition lies at the heart of the world’s battle against climate change and serves as the engine of the world’s efforts to reach its climate goals. A challenge, because no solution is perfect. We still need new scalable solutions, and all investments require time to bear fruit.
At St1, our direction is clear. Our company vision is to be the leading producer and seller of CO2-aware energy. We are realising our vision through investments in renewable energy and building world-class expertise in energy transition. Net sales of the St1 Nordic Group in 2023 amounted to EUR 8.2 billion, of which 22.1% came from sales of renewable energy, compared to 17.4% in 2022. The share of renewable energy in net sales increased proportionally due to lower prices for traditional fuels. Additionally, during the refinery maintenance shutdown, production was halted, which further decreased the net sales of traditional fuels. The main drivers of this year-to-year change included adjustments in regulations regarding biofuels mandates, as the Finnish and Swedish governments reduced their biofuel mandates.
Our investments show the direction in which we are headed. In 2023, our investments in renewable energy production exceeded EUR 111 million or 46% of all our new investments. Our strategy makes it clear that going forward, our investments will be increasingly geared towards renewable energy and these investments will start growing the proportion of renewable energy in St1’s net sales.
Our value chain emissions came to a total of 14,3 million tons of CO2 equivalent, of which 11,3 million tons came from the products we sold in different markets, down from 15,1 million tons in 2022. This decrease in emissions is namely attributed to a reduction in operational and sales volumes and the refinery turnaround period, during which our refinery operations were temporarily halted.
Here too, we expect our constant investments into renewable energy to continue to lower the carbon footprint of our operations. One example is our investments in expanding our EV charging network in the Nordics.
In 2023 our focus centred on hydrogenated vegetable oil (HVO), biogas, and wind projects, all of which are pivotal to executing our energy transition. The development of our wind projects in Norway and Sweden has been particularly noteworthy.
In biofuels, we saw the fruition of the largest investment in the history of the group: a new biorefinery at the Gothenburg refinery reached its final phase of completion in 2023. Once in operation, The Gothenburg Biorefinery has an annual capacity of 200,000 tons of renewable fuel production, with a primary focus on sustainable aviation fuel (SAF). As biogas is an important part of the energy transition, St1 invests heavily in both compressed and liquid biogas production, with several new plants in the works as we seek to expand our biogas business throughout the Nordic region. As the geopolitical landscape, energy markets, and regulatory environment have been in turbulence, we have taken several actions to counter these challenges.
In 2024, we will continue to focus on biogas, HVO value chains and wind projects. We will also focus on developing overall sustainability ambition and roadmap.
In the coming years, existing and emerging sustainability-related regulations will raise expectations of us to continuously develop our sustainability governance. These developments present both challenges and opportunities for St1, compelling us to identify and define material focus areas, set ambitious goals, and ensure compliance with new regulatory frameworks.
While renewable energy is the key to the green transition, developing new renewable energy projects requires finding a balance between swift action and thoughtful consideration. It’s essential to carefully weigh-up the multiple impacts of all projects.
For us at St1, it is extremely important that our renewable energy projects have social license, human rights and biodiversity taken into account. We implement these projects because they are vital for mitigating climate change, but we also acknowledge that these projects must be implemented in such a way that human rights are respected and that all potential impacts on nature are taken into account. Ideally, the outcome should benefit everyone. That is what we strive for in all our projects.
This report is an effort to convey in an open and concise manner where we are now, what our goals are, and where we will focus next. Our transformation journey is not easy, but we are committed and inspired to execute the energy transition.
