Gothenburg – a vital cog in Sweden’s green industrial transition
The Gothenburg region is a driving force in Sweden’s transition to carbon neutral industries. Investments and collaborations in the automotive and chemical industries are crucial not only for Sweden, but for the whole of Europe.
The Swedish government aims to build climate-neutral infrastructure nationwide, phase out fossil fuels, and accelerate electrification. Industry and the transport sector account for 58% of Sweden's greenhouse gas emissions, with three-quarters of these emissions coming from the Gothenburg region. The demand for fossil-free electricity is immense, driven by both the digital transformation of society and the shift towards electric vehicles.
At the same time, Gothenburg is bustling with activity. Historically Sweden’s industrial heartland, it has now become a hotspot for developing, scaling, and producing sustainable solutions. A standout example is the region's battery initiatives, which hold their own on an international scale.
Construction of Novo Energy's battery factory in Torslanda is well underway, with production planned to begin in the latter half of 2026. The factory will produce custom batteries for Volvo Cars. Novo Energy has also established a research and development centre in Gothenburg. In a unique collaboration between the city and the battery factory, purified wastewater from Gothenburg residents will be used for cooling during production.The heated water will then be reused in the district heating network, benefiting both the environment and the city's residents.
“Gothenburg is very well-positioned”
The public sector and academia are making significant investments to strengthen the cluster. On 24 January, an education hub, Battery Centre Gothenburg, will open at Lindholmen Innovation District. Its mission is to provide a comprehensive solution for competence provision for the battery and automotive industries, complementing existing learning environments.
Another major initiative is SEEL (Swedish Electric Transport Laboratory), one of the world's most advanced testing facilities for electromobility. This collaboration between Chalmers University of Technology and RISE Research Institutes of Sweden accelerates the development of electrified transport. Gothenburg also hosts Gothenburg Green City Zone, a testbed for innovations in urban freight and passenger transport.
“Developments in the energy sector present significant opportunities for Sweden,” says Joel Görsch, investment advisor, for automotive and mobility at Business Region Göteborg.
“The transition from petrol and diesel to electricity has resulted in much of a car's value shifting to its battery. That’s why it's important to conduct both development and production in Sweden, and Gothenburg is very well-positioned. We have potential to become a major hub for the battery cell industry in Europe,” he says.
Home to Sweden’s largest chemical cluster
The process industry in the Gothenburg region is also of national significance. Stenungsund, just north of the city, hosts Sweden's largest chemical cluster, producing a substantial share of the country's chemicals and plastics. Here companies have a long track record of collaborating, not least around sustainability. Major investments in transition projects, worth SEK 10 billion, are planned or underway. These would cut carbon emissions along the value chain by one million tonnes per year. A stable and green power supply is a must.
“Their decarbonisation is incredibly important. These companies are energy intensive and account for 2% of Sweden’s carbon emissions. At the same time, other industries, both in Sweden and internationally, rely on their products for their production,” says Hans Larsson, investment advisor for green tech at Business Region Göteborg.
Most of Sweden’s oil refining capacity is also located in Gothenburg and West Sweden. The refineries are investing heavily to lead the transition.
Preem, for instance, is investing SEK 5.5 billion to convert its Lysekil facility. This will enable the firm to become the largest renewable aviation fuel producer in northern Europe, as well as a major producer of renewable road transport fuels. The investment will also reduce end-use fossil emissions by 2–3 million tons of CO2 annually, with an additional local reduction of 200,000 tons of CO2 at the Lysekil refinery.
“As a key hub in one of the world’s most advanced industrial nations, companies here have a strong commitment to innovation and sustainability. These investment plans are proof of this, as is the surge in research and development spending we have seen in our region during the past decade. Our companies and individuals are paving the way – and they want to maintain this position,” says Hans Larsson.
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