norway – unique location for battery development · 2018-05-09 · norway is a unique location...
TRANSCRIPT
Norway – unique location for battery development
and production
Norway is a unique location with all required components in place for establishing your competitive business within the battery production value chain from materials, cell production, and module assembly to recycling:
Materials and logistics – Large share of materials available either in Norway or Nordics: Lithium(Norway, Finland), graphite, minerals for titan oxides. Available industry sites with deep-waterfacilities and logistics for other import and export.
Leading industry partners – Globally leading metallurgic industry for value chain cooperation:Aluminium (Hydro, Alcoa), Silicon (Elkem, Dynatec), Nickel, Cobalt and Copper (Glencore),Graphite (Skaland, Elkem Carbon, Saint-Gobain), Separator and electrolyte (Borregaard). Globalplayers in module assembly for marine battery applications: Siemens, Corvus Energy and PBES.
High R&D competence – Excellent competence centers in metallurgy, automation, industryprocesses, assembly and more: Sintef, NTNU, Sintef Raufoss, IFE, Kongsberg Maritime andElkem.
Productive and innovative – High productivity across all industry steps, from material usage,processes and labour – ranked 3rd highest in OECD. Efficient & innovative due to high-skilledlabour and work culture. Several examples of reshoring in process and machinery industry.
100% clean, reliable energy – Abundance of 100% clean, reliable renewable hydropower energyat low prices across the country. Historically 25% lower than European average, with economicincentives for material- and energy-intensive industry.
Customer proximity – Close to European demand with Norway fully integrated in the EU singlemarket through the European Economic Area, while not a member of EU. Long tradition forsupplying European and Global automotive industry.
Support ready – Governmental support schemes competitive with other countries.
Stable and easy – Politically stable and world leading ranking on transparency (3rd), ease ofdoing business (9th), productivity (3rd) and competitiveness (11th). 6000 foreign-ownedcompanies provide ~25% of industry value-creation and ~20% of employment.
Forefront globally - Norway is at the forefront of electrification of transport.
Invest in Norway- the governmental investment promotion agency of Norway- invites players across the value chain to locate in Norway and will do its outmost to facilitate such industry establishment. We have close cooperation with vital parts of the Norwegian industry and would know relevant partners for your company to cooperate with.
Yours sincerely
Finn Aamodt Per Stensland Director, Invest in Norway Special advisor, Invest in Norway
1. Contents
2. ABOUT NORWAY ............................................................................................................................. 3
3. ADVANCED GREEN INDUSTRY-, RAW AND PROCESSED MATERIALS .............................................. 4
4. THE NORWEGIAN MANUFACTURING INDUSTRY ............................................................................ 6
5. BATTERY DEVELOPMENT IN THE NORWEGIAN MARITIME MARKET ............................................. 7
6. LOCATIONS AND LOGISTICS IN NORWAY ........................................................................................ 9
7. GOVERNMENTAL SUPPORT AND INCENTIVES .............................................................................. 11
8. NORWAY IS 100% POWERED BY CHEAP, RENEWABLE ENERGY ................................................... 14
9. NORWAY IN THE FOREFRONT OF ZERO-EMISSION TRANSPORT .................................................. 16
10. COMPETENCE AND R&D ............................................................................................................ 17
11. LABOUR AND PRODUCTIVITY .................................................................................................... 19
12. DOING BUSINESS IN NORWAY .................................................................................................. 19
13. PARTNERS .................................................................................................................................. 21
14. HOW TO PROCEED .................................................................................................................... 21
15. APPENDIX .................................................................................................................................. 22
2. ABOUT NORWAY
Norway is a politically stable, modern and highly
developed country with a very strong economy. Norway
is in international ranking seen as the most stable
democracy in the world (Democracy index 2017) and
small political differences make the business framework
predictable. Norway tops most rankings for business
parameters.
Norway is a safe and easy country for business. Norway
ranks as no 9 of 190 countries on the Ease of doing
business from the World Bank. According to this survey, Norway scores as the 4th best country on
Starting a business.
The population of 5.3 million is modest in size, yet its purchasing power is comparable to larger
economies due to high standard of living and evenly distributed wealth. Most Norwegians are fluent
English speakers with French and German frequently spoken as well.
Norway has always been open to foreign investments. There are about 6000 foreign-owned limited
companies in Norway with many additional branch offices. Foreign companies represent about 25%
of all value-creation in Norwegian industry and about 20% of the employment. Many large multi-
national companies are present in Norway, within the metals, process, oil and gas industry, maritime-
/shipping industries, and the technology development.
Norway is now looking for new industrial development. We are particularly looking at new industry
development based on abundance of cheap, renewable energy.
The Nordics
Norway is part of Scandinavia and the Nordic region with a total of about 27 mill People. This region
in the north-western part of Europe share common values and partly a common language
(Scandinavian). The Nordic countries are generally top-performing on most rankings with relevance
for business.
3. ADVANCED GREEN INDUSTRY-, RAW AND PROCESSED MATERIALS
The Norwegian process-industry produces energy-intensive materials and products based on 100 %
green, renewable energy, making these uniquely positioned from a sustainability point of view. New
entrants in the battery value chain can fully utilize the advantage of hydroelectric power, and the
usage of raw materials from Norwegian suppliers in the battery value chain will have a significant
positive effect on carbon footprint and improved Life Cycle Cost.
It is a vital goal for the process-industry to be at the sustainability forefront, producing more energy-
and resource-efficient, and with lower carbon footprint than competitors. This industry sector has
recently developed a roadmap to be carbon neutral by 2045, as a response to the Paris Agreement.
Companies and operating environment
Norwegian process industry is a global hub for producing specialized materials for challenging
technological applications within automotive, aviation, maritime and energy. Consequently, this
industry is R&D/Innovation intensive and is characterized by international ownership and exports,
B2B relationships and co-development with customers.
• Nickel, cobalt, copper, and aluminium are important refined materials in production of battery
cells and cathodes. The large, international companies Glencore Nikkelverk, Hydro and Alcoa,
produce and supply these materials in Norway and may support the battery value chain with
materials and know-how.
• Silicon and silicon alloys are locally produced by Elkem, a global leading supplier. The company is
also utilizing its vast experience in carbon and silicon to develop both synthetic graphite and
silicon anode materials for rechargeable lithium-ion batteries. Moreover, Dynatec Engineering
offers new, disruptive technology for special qualities of silicon. And Saint Gobain is world
leading producer of Silicon Carbide and potential supplier of synthetic graphite.
• Borregaard LignoTech is a leading manufacturer of organic additives for lead acid batteries and
other battery applications. Ineos produces polyethylene.
Our country has extensive mining operations. Europe’s largest crystalline flake graphite production is
located in Northern Norway. Minerals for titan oxides are extracted at Titania and under planning at
Engeboe by Nordic Mining, and there is a Nordic source of lithium under development to produce
lithium carbonate.
Map of the Norwegian process industry (source: Federation of Norwegian Industries)
There is a high degree of cooperation between companies in the Norwegian Process Industry. The
Eyde Cluster organizes cooperation between companies in Southern Norway, while Artic Cluster
Team offers similar cooperation framework in Northern Norway. Recently two national “catapult
centers” were launched. These two are focusing on materials and automated production hence
names are Future Materials Norwegian Catapult and Manufacturing Production Norwegian Catapult.
The Nordic work model is unique to mobilize employees in continuous improvement work, utilizing
their competence on all levels in the organization to implement successful and innovative solutions.
Recycling of Li-ion batteries
Norway is in the global forefront with incentive programs to promote the growth in use of electric
vehicles and electrified ferries. In 2017, 40% of all personnel cars sold were electric or rechargeable
hybrid cars. This share is expected to reach near 100% in 2025.
There are full scale solutions for recycling of Li-ion batteries available, but these are insufficient to
regain vital and valuable components of the battery. The company Hydro is in lead on a development
program aiming at achieving much higher material recovery rate than currently available processes,
including recovery of lithium, and in an environmental friendly process with low energy
consumption.
The broad cooperation of the Norwegian process industry facilitates the possibility of bringing
process and materials technology core competence into the battery recycling business. In 2030,
more than 200 000 tons of lithium-ion batteries in the EU must be recycled and five years later, in
2035, the expected volume is at least twice as large. Bloomberg New Energy Finance has assumed a
value of 1 700 USD/Tons of recycled Li-ion batteries. Such recycling solutions will also be supportive
to existing local materials producers that will be able to further increase the portion of raw materials
to their processes coming from “urban mining”.
4. THE NORWEGIAN MANUFACTURING INDUSTRY
Norwegian industry is at the forefront on automation and efficiency. It has been forced to develop
these capabilities due to competition from international players with lower labour costs. This applies
to all industry sectors.
In particular, the supply sector supplying automotive industry has managed to develop world-leading
competence and sustain a strong value chain despite the competition. The industry is centred around
Raufoss as the national competence center for light-weight materials and automated production in
Norway. The cluster has 17 company partners, some 5000 employees and export ratio of more than
80 %. The main markets for the cluster companies are the global automotive industry, the defence
markets and B-B electronics, and strong niches within areas like gas tanks, aluminium profiles,
mobility aids etc.
5. BATTERY DEVELOPMENT IN THE NORWEGIAN MARITIME MARKET
The maritime industry in Norway has a globally strong position in markets around the world, and are
taking the global lead in electrification of maritime vessels. All the players in the maritime value chain
are represented in Norway; ship owners (offshore, deep sea, short sea and drilling and production),
equipment manufacturers, service providers (financial, legal, port, logistics, technological and
trading) and ship yards.
Norwegian-controlled shipping companies control the world's 6th most valuable ship fleet, and
Norwegian maritime companies are world leaders in a wide range of areas. Norway has one of the
world's most comprehensive environments for maritime services. For example, Det Norske Veritas
GL (DNV GL) has classified more than 20 percent of the world's sailing fleet. DNB and Nordea are the
world's two largest ship financing providers.
In addition, Norwegian companies are behind a continuous stream of innovations within ship design,
propulsion systems, equipment and services. Many of the innovations have and will contribute to
environmental and climate improvements.
The Norwegian supplier industry and ship owners are at the global forefront of environment friendly
technologies at sea. Since 2010 there has been a significant increase of batteries on-board vessels,
both full electric and battery hybrid solutions. Currently there are more than 60 full electric or
battery hybrid vessels globally, and 40% of these are Norwegian vessels. This trend is expected to
grow in the years to come, and that batteries will be applied in more and more of the vessels
segments.
Ampere, the world’s first electric ferry. Photo: Norled
The ferry sector together with offshore has been the two sectors that have contributed the most to
the fact that there is a good market for battery development and deliveries in Norway. Several
maritime battery companies have in recent years established themselves with production in Norway:
Plan B Energy Storage (PBES), Siemens, Grenland Energy, ZEM, and Corvus (operating, but not yet
producing in Norway).
From 2016 to 2017 PBES increased their work force from 2 employees to over 40 employees, and
went from trial production to an expected turnover of 21 mill EUR. The establishment of battery
factories in Norway gives a ripple effect and there are an increasing number of Norwegian sub
suppliers to battery production.
Siemens expects a doubling of the marine battery market by 2024, and that nearly 80 percent of all
new small and medium-sized vessels up to 150 meters, will be equipped with hybrid solutions that
include battery operation. More information can be found at Norwegian maritime Battery Forum.
Requirements from operators in combination with economic incentives will lead to more action. The
new contracts that the largest petroleum company, Statoil, has entered into are a good example of a
driver: batteries installed are a requirement for long-term contracts (3-5 years) with the ship owners.
This has prompted many shipping companies to offer the solution, and such contributed significantly
to market change in the segment.
6. LOCATIONS AND LOGISTICS IN NORWAY
Norway´s coastal regions have abundant hydropower and deep-sea ports that provide excellent
energy and logistics conditions. As a result, the main volume of Norwegian process industry is located
along the coast. Several of these locations provide free space and readily available power
infrastructure for battery production.
Due to the distribution of ports along the entire coast, transport to and from countries abroad is
efficient all over Norway. This link gives an overview of all ports. Zoning of new industrial land is
overseen by the municipalities. Zoning processes are transparent and predictable. Building permits
are issued on the base of approved plans with building permit processing time down to 5 days.
Invest in Norway maintains an overview of available greenfield and brownfield sites for new industry
and offers complimentary assistance to identify sites compliant with the investor´s needs. Some
examples follow.
Example of greenfield site: Haugaland Industrial Park. 500 Hectares zoned for industry. ISPS port 110 m quay / 16.5 m draft.
Adjacent regional power grid
Mo Industrial Park, example of large brownfield opportunity, totally 260 hectares with large quantities of renewable power
available
Example of greenfield opportunity in Southern Norway, Gullknapp. 125 acres that can be expanded, with neighbouring
private airport. Close to process industry like Glencore Nikkelverk, Alcoa and Elkem. Adjacent regional power grid.
Example of greenfield opportunity in Vestfold county, Southern Norway. Source: Statkraft
7. GOVERNMENTAL SUPPORT AND INCENTIVES
Norway has a broad range of funding agencies and instruments custom made for projects in various
stages of matureness from basic research, industrial and experimental research to demonstration and
market introduction.
At the early stages of research, there are tax instruments (called Skattefunn) and R&D support
(Norwegian Research Council) whilst ENOVA is the funding instrument for demonstration, market
introduction and market change. Innovation Norway operates in several of the stages in between.
The Norwegian support system for power-intensive industries moreover entails tax-reduction and
support mechanisms for research and development within energy efficient solutions. Electricity
prices in Norway are among the lowest in Europe due to the low-cost hydro power resources,
furthermore power intensive industry is largely exempted from electricity tax and costs of electricity
certificates, and Norway has a scheme to compensate energy-intensive industry for the indirect CO2
costs linked to the EU ETS.
Enova
Enova is at state-owned funding agency in Norway. Enova’s main purposes is to is to create
permanent changes in supply and demand for efficient and renewable energy and climate solutions,
strengthen security of supply and reduce greenhouse gas emissions. Enova therefore invest heavily in
future-oriented energy and climate measures, and thus represent a unique potential when it comes
to development and implementation of battery technology in transport and industry.
Enova’s foremost instrument is investment support for projects. By covering some of the extra costs
(up to 40% as general guide line) that the market takes on by selecting more energy and climate-
friendly solutions, Enova can promote energy and climate projects that would otherwise not have
been realized. The support boosts profitability in the projects and reduces the risk for the project
owner, and strengthens the position of the energy and climate projects when investment decisions
are made.
Enova has several financial support programs and an impressive portfolio of investment projects.
Some examples that’s demonstrate how Enova can supports different players in a value chain:
• 14 mill EUR to Yara for the construction of the first autonomous and fully-electrical zero-emission
container ship in the world
• 164 mill EUR to Hydro for the industrial pilot at Karmøy for HAL4e, for the design of a new
technological platform for aluminium production with low energy consumption, high production
efficiency and low environmental impacts
Norsk Hydro technology pilot, supported by Enova. Credit: Norsk Hydro.
• 5 mill EUR to the Norwegian coastal express for the construction of two hybrid and energy
efficient artic expedition vessels.
• 37 mill EUR to 60 projects establishing land power infrastructure for vessels in Norwegian ports.
Use of land power contributes to increased energy efficiency and reduced greenhouse gas
emissions when ships are at the dock.
Innovation Norway
Innovation Norway is the Norwegian Government's most important instrument for innovation and
development of Norwegian enterprises and industry. Innovation Norway supports companies in
developing their competitive advantage and to enhance innovation. Innovation Norway has offices in
all Norwegian counties and in more than 30 countries abroad.
Innovation Norway provides grants, loans and sector-specific schemes. The Environment Technology
Scheme (ETS) is a nation-wide program well-suited pilot and demonstration facilities in development
of new environmental technology. The ETS scheme would be well suited in a situation where a
battery technology provider seeks risk reduction for developing the technology or process in a more
environmental-friendly way.
The Research Council of Norway
The Research Council of Norway serves as the chief advisory body for the government authorities on
research policy issues, and distributes roughly EUR one billion to research and innovation activities
each year. The Research Council works to promote international cooperation and increase
participation in the EU framework program on research and innovation. The Research Council creates
meeting places and provides a platform for dialogue between researchers, users of research and
research funders.
One of the Council’s programs is covering battery development; the Energix program, which has
awarded up to 53. mill. EUR until 2017.
Pilot E
Pilot-E is a joint initiative from Enova, Innovation Norway and the Norwegian Research Council which
offer financial support to Norwegian industry. The purpose of the scheme is to ensure that products
and services within environmentally friendly energy technology will be developed and implemented
faster in order to contribute to emission cuts in Norway and internationally. Pilot E contributes to a
fast track process from idea to market. To qualify for support from PILOT-E a project must include the
entire course from research to full-scale demonstration of new concepts or innovative solutions
under real operational conditions.
Tax incentive
Norwegian tax rules offer an R&D incentive scheme called “SkatteFUNN” which give tax credit for
R&D costs up to certain thresholds. The scheme is funded and administered by the Research council
of Norway. The amount of the tax credits is either 18% or 20% of the costs incurred, depending on
the size of the business. The SkatteFUNN R&D cost ceiling for R&D projects using in-house R&D
resources is EUR 2 million per year. The SkatteFUNN R&D cost ceiling for R&D projects also using
external pre-approved R&D resources is EUR 4 million per year. Total costs for in-house and external
resources must not exceed EUR 4 million.
8. NORWAY IS 100% POWERED BY CHEAP, RENEWABLE ENERGY
Norway has cheap, abundant power supply, 100% renewable and reliable – the country is thus home
to advanced energy-intensive industries and is leading the energy transition across sectors
Norway’s power mix is already fully renewable.
There are large hydro reservoirs high up in the mountains that is ready to produce when it is
demanded by industry and consumers. When demand is low, the water is kept in the reservoir. This
enables the national power system to be free of fossil power generation, and moreover this hydro-
based power system allows the highest security of supply. This could enable battery production with
the lowest carbon footprint in the world.
The power supply is moreover 100% reliable. The national transmission grid is among the strongest
in the world, built to support large-scale electrification of industry and household heating. This
means there will be clean power also when there is no wind, no sun, and very few, if any,
disturbances in the power supply to industry. The power system is well connected to surrounding
countries, which further stabilized supply.
Lowest industry power tariffs in Europe
Norway has, depending on the year, the lowest or among the lowest power tariffs in Europe,
including power component, grid access component and taxes.
0%20%40%60%80%
100%Share of renewables, Norway & relevant EU countries
020406080
100120140160
2007 2008 2009 2010 2011 2012 2013 2014 2015
EU27 & Norway industry tariffs, incl. taxes (Euro/MWh)
The low prices are due to the existing low-cost hydropower plants, but they will with certainty
remain low due to the abundance of cheap wind power, at cost levels that are 10-25% lower than
elsewhere in Europe.
Efficient power market and purchasing options
The Nordic power market is role model for liberalization of power markets globally. The market is
very liquid and one may secure power supply physically or financially for long time-horizons.
Corporate PPAs tied to specific new renewables projects are also plentiful and increasing. There are
several large power suppliers and traders which your company can engage with.
Home of energy-intensive industry
Since the early industrialization in early 1900, the abundance of cheap power has attracted power-
intensive industries to Norway, and helped create a cluster of metallurgic, mining and processing
industry in the country. These are strong potential partners to battery value chain players, and the
industry from strong industry associations for advocating, collaboration and R&D.
Leading the energy transition
As Norway already has a fully renewable power mix, the country has focused on decarbonisation
other sectors like transport and industry. Norway is world-leading in electric vehicles uptake, and in
electrification of heating and industry processes. There are initiatives to utilize the country’s forest
resources towards bio-chemicals and bio-fuel, and initiatives to provide clean hydrogen from
electrolysis to industry processes.
Together these trends and initiatives create a fertile ground for establishing the most sustainable and
most competitive battery production world-wide.
9. NORWAY IN THE FOREFRONT OF ZERO-EMISSION TRANSPORT
Norway is leading the energy transition and electrification of transport, due to early and fertile
policies enacted and sustained by Norwegian governments last 15 years.
Norway’s ambition is to reduce greenhouse gas emissions with 40% within 2030 (compared to 1990
levels) and to be carbon neutral in 2050. This is adopted by Norwegian law in the Climate policy. The
policy sets goals for national emission reductions and for restructuring Norway to a low-emission
society. The agreement is a result of the broad political consensus that Norway shall take a
responsibility for a reduction in greenhouse gas emissions through an active national policy.
Transport, including maritime transport, accounts for a large part of Norway's greenhouse gas
emissions and thus plays an important role in reaching Norway’s climate goals.
The government's overall goal for national transport is “a transport system that is safe, promotes
value creation and contributes to conversion to the low-emission society.” The national transport
plan (NTP) outlines how the Government intends to priorities resources within the transport sector.
It is a twelve-year-plan that is revised every fourth year. NTP is followed by a white paper that forms
the basis for the annual state budget for the Norwegian transport sector, allocating resources to the
four national transport agencies (rail, road, air and sea).
The Climate strategy for transport in NTP aims for a 50 % reduction of emissions from transport by
2030. To reach this ambitious goal, improvements in several areas must be done: introduction of
low- and zero-emission technology, sustainable biofuels, zero growth of cars in the cities, transfer of
goods from road to sea and railways and reduced emissions from construction, operation and
maintenance.
Goals related to introduction of low- and zero-emissions technology entails:
• After 2025, new private cars, city buses and light vans are to be zero-emission vehicles
• By 2030, new heavy vans, 75 % of new long-distance buses, and 50 % of new lorries are to be
zero-emission vehicles
• By 2030, goods distribution in major urban centers are to be almost emission free
• New ferries and speed boats are to run on biofuels, low or zero-emission technology
• By 2025, shore side electrical power and charging power are to be available for ships in major
ports
• By 2030, 40% of all ships in local shipping are to run on biofuels or be low-/zero emission vessels
To reach these goals, the government uses at set of incentives: taxes and regulations, funding of
R&D, demonstration etc. As an example, zero-emission cars have several benefits in Norway to
promote a green shift: tax exemptions, facilitation (parking etc.), access to public transport lanes and
low rates at toll rings.
In 2017 more than 20 per cent of all new passenger cars sold in Norway are zero-emission electric
cars (and almost 40 per cent if chargeable hybrids are included). Electric and hybrid cars have in the
space of just a few years become real alternatives in the passenger car market. By financial support
to the development of a nationwide battery charging infrastructure Enova has accelerated the
market up take of electric cars. Enova also has a program for financial support to the development of
hydrogen filling infrastructure in the largest cities in Norway.
10. COMPETENCE AND R&D
Norwegian battery competence is to be found both in the industry and amongst universities and R&D-
institutions. There are several research institutions active in the field.
MoZEES is a Norwegian Research Center on Zero Emission Energy Systems with focus on battery- and
hydrogen technology for transport applications. MoZEES has a total of 40 partners including 7
research institutions, 7 public bodies and 26 industrial partners. The center in addition collaborates
with 6 international research institutions. Battery research areas within the Mozees initiative are:
• Materials and components for battery; anodes, cathodes, electrolytes, increased performance,
capacity and rate capability
• New fabrication methods
• Lower cost of production
• Battery modelling, life-time and safety
• Battery systems, optimization and hybridization
21%
3% 2% 1% 1% 1% 1% 1%0%
5%
10%
15%
20%
25%
Norway Netherlands Austria France Switzerland Sweden Germany UK
EV share in new car sales
The Norwegian University of Science and Technology is the largest university in Norway today, with a
history dating back to 1910, and a tradition going back to 1767 and the Royal Norwegian Society of
Sciences and Letters (DKNVS). Two of their researchers received the Nobel Prize in medicine 2014.
The University in Oslo moreover has strong competence areas in chemistry, physics and research into
battery technologies.
Institute for Energy Technology (IFE) is the host and leader of Mozees and also leads the work on
battery systems within Mozees. IFE is an independent research foundation located in Norway at
Kjeller and in Halden. IFE is in the forefront of several fields within international energy research,
safety, environmental-, petroleum- and nuclear technology. IFE develops new technological solutions
for the industry and public sector in more than 30 countries. IFE has a strong battery technology
group working within new materials for Li-ion batteries and battery life-time and ageing, diagnostics
and safety.
SINTEF is one of Europe’s largest independent research organisations. SINTEF is a broad,
multidisciplinary research organisation with international top-level expertise in the fields of
technology, the natural sciences, medicine and the social sciences. SINTEF conducts contract R&D as
a partner for the private and public sectors, and is one of the largest contract research institutions in
Europe. SINTEF is performing research on the whole battery value chain, from development of new
materials for existing batteries and new battery systems to evaluation of performance and lifetime of
commercial batteries for various applications. Other electrochemical energy storage systems such as
supercapacitors and redox flow batteries are also areas of research.
In addition to the research competence, two industrial battery projects were vital for building battery
competence in Norway; Norway’s production of the electric car Think and the cooperation between
Miljøbil Grenland and Tata Motors. As for Think, this battery competence has been brought into
ZEM; and in the Grenland area, Grenland Energy is utilizing the competence into maritime batteries.
11. LABOUR AND PRODUCTIVITY
Norway has a very skilled, competent and productive labour force and work culture. The labour
market is efficient, integrated with EU, and availability good. The salaries are quite equal across
sectors and roles compared to other countries, meaning high skilled labour is relatively cheap.
The unemployment rate of 4Q of 2017 was 4,1% (Statistics Norway). There are however regional
differences. Due to the cooling in the oil and gas sector, there is more available skilled labour in
Norway than for a decade.
Average annual salary in 2017 was about 54 ‘EUR. For plant and machine operators and assemblers,
the annual salary was in 2017 47’ EUR. Salaries in Norway are above European average; however,
Norway has increased its competitiveness since 2013 due to the depreciation of the Norwegian
currency.
A notable effect of Norway´s high wage equality is, however, the modest salary culture among highly
educated personnel. The average annual income for a Norwegian engineer with Master´s degree and
10-19 years of experience in private business is about 90´ EUR. (The Norwegian Society of Graduate
Technical and Scientific Professionals).
Salary levels and productivity levels are interconnected. Several international rankings show Norway
as the second most productive country (GDP per cap/hours worked). According to the IMD
Competitiveness survey, Norway scores as the 2nd most productive and efficient country in their
ranking.
12. DOING BUSINESS IN NORWAY
Foreign capital has been decisive in developing new industries in Norway. Two of our most important
industries, oil and gas and the process industry were both built with foreign capital and expertise.
Foreign investments to Norway are thus widely encouraged by both local and central government.
The Norwegian Government has established several agencies to support and stimulate innovation,
growth and internationalization in Norwegian business. In addition, there are several regional
development and business agencies.
Tax
The tax system is neutral towards foreign and local investors and there are few investment
restrictions. Also, Norwegian company legislation contains very few restrictions and disadvantages
towards foreign investors.
Companies tax resident in Norway are subject to a corporate income tax of 23% on their net tax
income. Special tax regimes apply to income from the exploration of petroleum resources, shipping
income and income from the production of hydropower.
All kinds of income, interest, dividends, capital gains on the disposal of assets or ownership interests
and foreign-sourced income taxable in Norway are included in the ordinary taxable corporate
income. However, for resident limited liability companies or entities, the participation exemption
method is applicable for dividends and gains on shares and partnership interests. There is no
separate tax on capital gains, and hence capital gains are taxed as ordinary income at the general
corporate income tax rate of 23%.
Competitive, productive and digital
Norway ranks as no 9 of 190 countries on the Ease of doing business from the World Bank. According
to this survey, Norway scores as the 4th best country on Starting a business. As for competitiveness,
Norway ranks as the 9th most competitive country, according to IMD world Competitiveness report.
In this survey, Norway ranks as the third most productive and efficient country.
According to the IMD Digital Competitiveness ranking of 2017, Norway scores between the top 3
countries on criteria like band-with speed, number of internet users and use of communication
technology. Generally, Norwegians are typically early adopters and thus an excellent test market.
The Norwegian business culture is based on Norwegian (Scandinavian) work values, focusing on
equality, autonomy and empowerment. As a result, you will see little hierarchy, flat structures and
an informal communication. The level of trust is high in the society, meaning that business can be
efficient without building too much management structures. Working in Norway means that you
must take responsibility and initiative.
13. PARTNERS
This document has been developed by the following partners:
• Invest in Norway, the governmental Investment Promotion Agency of Norway
• Enova, governmental agency for development of energy and climate technology
• Statkraft, a leading company in hydropower internationally and Europe’s largest generator of
renewable energy
• The Eyde Cluster, Norwegian Centers of Expertise for the process industry
• Sintef Raufoss Manufacturing, Norway's leading centre of expertise in manufacturing
• IFE, Institute for Energy Technology
14. HOW TO PROCEED
Invest in Norway invites players across the value chain to locate in Norway and will do its outmost to
facilitate such industry establishment. Invest in Norway can provide information, help with site
selection and find relevant partners. Contact persons can be found on our website:
http://www.innovasjonnorge.no/en/start-page/invest-in-norway/contact-us/
Investors and companies from the US, Japan, China and Germany, please feel free to take direct
contact with our local staff mentioned on link above.
15. APPENDIX
Doing business in Norway
• https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?year_high_desc=true• http://www.doingbusiness.org/rankings• https://www.imd.org/wcc/world-competitiveness-center-rankings/world-digital-
competitiveness-rankings-2017/• https://worldcompetitiveness.imd.org/countryprofile/NO/wcy)• https://www.tekna.no/en/
Advanced green industry- raw and processed materials
• http://www.nikkelverk.no/en• https://www.hydro.com/• http://www.alcoa.com• https://www.elkem.com• https://www.dynatecengineering.no• https://www.lignotech.com• https://www.ineos.com• https://graphite.no/#!/about.• http://www.nordicmining.com/engebo-project/category317.html• https://www.keliber.fi/en .• https://www.eydecluster.com/en
Governmental support and incentives
• https://www.energinorge.no/contentassets/525e77b1feff4203a94ef6d1f94cfd03/electricity-costs-of-energy-intensive-industries-in-norway.pdf
• https://www.enova.no/about-enova/.)• https://www.skattefunn.no/prognett-skattefunn/Home_page/1222340152176• http://www.innovasjonnorge.no/en/start-page/our-services/financial-services/
Battery development in the Norwegian maritime market
• http://maritimebatteryforum.com/news/maritime-battery-production-in-norway• http://www.pbes.com/• https://www.siemens.com/no/no/home.html• http://grenlandenergy.com/• https://www.zemenergy.com/ .• http://corvusenergy.com/
R&D • http://mozees.no/• https://www.sintef.no/en/batteries-and-energy-storage/