THROUGH CONTINUOUS IMPROVEMENTS, WE ARE APPROACHING THE BIG CHANGES

Today, our company Scandinavian Renewable Energy operates 201 wind turbines in southern Sweden, which makes us the largest wind power producer in Sweden in terms of turnover. The venture has been made possible thanks to support from institutional investors and our ownership is now reduced to 20%. With 2 TWh of electricity production, we currently appear to be the sixth largest producer of electricity in Sweden. On average, it has taken over ten years to get all permits for wind power and associated power lines in place in our latest projects. Democracy takes time. Of course, it is possible to improve processing times. However, we have respect for the concept of democracy and work intensively to create consensus with the public through responsiveness and improvements. We currently have a project portfolio that could lead to a doubling of our electricity production. Simultaneous investments in solar panels at the same location as the wind turbines, will also increase our electricity production.

All roofs of our properties’ will have solar panels in the future. This way Stena Fastigheter aims to become self-sufficient in electricity. With the help of AI solutions and several measures, Stena Fastigheter aims to reduce its total climate footprint by 50% by year 2030.

Our ships consume and will continue to consume energy. In relation to the transport work performed, our energy consumption decreases by around 1.5% per year. Changing the energy types from fossil fuel to non-fossil fuel is not easy, but we have some experience. When we were the owners of the Helsingborg-Helsingör route, we enabled electric operation of the ferries. We have introduced methanol as fuel for the Gothenburg-Kiel route. Methanol production based on CO₂ reduction will in the future enable making methanol a green fuel. However, the fuel cost for methanol is roughly double that of diesel.

In order to speed up the transition to renewable fuels in a neutral competition environment, the shipping industry is positive about a carbon dioxide tax for shipping on the condition that the tax income is divided between development support for the industry and subsidizing e.g. the changing of energy production based on coal in developing countries to a more CO₂ neutral production.

For our short routes, Stena Line believes in electricity-powered ships and for our long routes we believe in ships powered by blue or green methanol. There are more fuel options, e.g. hydrogen. As all alternatives involve at least a doubling of our fuel costs, we are cautious about quickly switching to new fuels on a large scale. At the same time, a transition to electric ships means that large investments must be made in the ports we call at. Not only costs but also energy security drive the content of our investments for future fuels. Oil or methane gas will
therefore continue, albeit to a lesser extent, to be shipping’s main fuel for a long time to come.

In order to be at the forefront, Stena Bulk and Northern Marine are now operating four new methanol vessels.

For Stena AB, 2022 has been a good and profitable year. However, depending on the development of the world economy, there are both negative and positive uncertainties in various of our business areas regarding the 2023 results. In order to avoid major uncertainties, the Stena AB group is designed as a conglomerate and has so far coped well with major fluctuations.

Our greatest competitive advantage is our ability to care not only for our customers but also for each other, our suppliers and partners. Thanks to perfect collaborations, we manage to achieve an almost perfect operation. We are very satisfied with our market shares and our collaborations and look to the future with confidence.

A big thank you to all employees and other stakeholders, who made our fine result possible this year.

Dan Sten Olsson, CEO

Göteborg February 2023