http://www.guardian.co.uk/oil/story/0,,1704954,00.html


Sweden plans to be world's first oil-free economy

· 15-year limit set for switch to renewable energy
· Biofuels favoured over further nuclear power

   John Vidal, environment editor
   Wednesday February 8, 2006
   The Guardian

Sweden is to take the biggest energy step of any
advanced western economy by trying to wean itself
off oil completely within 15 years - without
building a new generation of nuclear power
stations.

The attempt by the country of 9 million people to
become the world's first practically oil-free
economy is being planned by a committee of
industrialists, academics, farmers, car makers,
civil servants and others, who will report to
parliament in several months.

The intention, the Swedish government said
yesterday, is to replace all fossil fuels with
renewables before climate change destroys
economies and growing oil scarcity leads to huge
new price rises.

"Our dependency on oil should be broken by 2020,"
said Mona Sahlin, minister of sustainable
development. "There shall always be better
alternatives to oil, which means no house should
need oil for heating, and no driver should need
to turn solely to gasoline."

According to the energy committee of the Royal
Swedish Academy of Sciences, there is growing
concern that global oil supplies are peaking and
will shortly dwindle, and that a global economic
recession could result from high oil prices.

Ms Sahlin has described oil dependency as one of
the greatest problems facing the world. "A Sweden
free of fossil fuels would give us enormous
advantages, not least by reducing the impact from
fluctuations in oil prices," she said. "The price
of oil has tripled since 1996."

A government official said: "We want to be both
mentally and technically prepared for a world
without oil. The plan is a response to global
climate change, rising petroleum prices and
warnings by some experts that the world may soon
be running out of oil."

Sweden, which was badly hit by the oil price
rises in the 1970s, now gets almost all its
electricity from nuclear and hydroelectric power,
and relies on fossil fuels mainly for transport.
Almost all its heating has been converted in the
past decade to schemes which distribute steam or
hot water generated by geothermal energy or waste
heat. A 1980 referendum decided that nuclear
power should be phased out, but this has still
not been finalised.

The decision to abandon oil puts Sweden at the
top of the world green league table. Iceland
hopes by 2050 to power all its cars and boats
with hydrogen made from electricity drawn from
renewable resources, and Brazil intends to power
80% of its transport fleet with ethanol derived
mainly from sugar cane within five years.

Last week George Bush surprised analysts by
saying that the US was addicted to oil and should
greatly reduce imports from the Middle East. The
US now plans a large increase in nuclear power.

The British government, which is committed to
generating 10% of its electricity from renewable
sources by 2012, last month launched an energy
review which has a specific remit to consider a
large increase in nuclear power. But a report by
accountants Ernst & Young yesterday said that the
UK was falling behind in its attempt to meet its
renewables target.

"The UK has Europe's best wind, wave and tidal
resources yet it continues to miss out on its
economic potential," said Jonathan Johns, head of
renewable energy at Ernst & Young.

Energy ministry officials in Sweden said they
expected the oil committee to recommend further
development of biofuels derived from its massive
forests, and by expanding other renewable
energies such as wind and wave power.

Sweden has a head start over most countries. In
2003, 26% of all the energy consumed came from
renewable sources - the EU average is 6%. Only
32% of the energy came from oil - down from 77%
in 1970.

The Swedish government is working with carmakers
Saab and Volvo to develop cars and lorries that
burn ethanol and other biofuels. Last year the
Swedish energy agency said it planned to get the
public sector to move out of oil. Its health and
library services are being given grants to
convert from oil use and homeowners are being
encouraged with green taxes. The paper and pulp
industries use bark to produce energy, and
sawmills burn wood chips and sawdust to generate
power.





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