Hi there Hans Fredriksson

Hans, you have worked for Lantmännen since 2004 – in various roles in purchasing and especially in group-wide energy purchasing. Would you like to tell us a little more about your current position?
A: I work at Lantmännen Biorefineries in a shared role where I work with the purchase of indirect material for Biorefineries, and with central energy purchasing for the whole of Lantmännen. Due to the turbulence in the energy market, I have been focusing on the energy issue for some time now.
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Due to the turbulence in the energy market, I have been focusing on the energy issue for some time now.
Since the second half of 2021, there has been a sharp rise in energy prices within the EU and the rest of the world. What has happened?
A: Natural gas accounts for almosta quarter of the EU’s energy use
and before the war in Ukraine about 40 per cent of the gas was imported from Russia. Russia's invasion therefore led to concerns about gas shortages. At the same time, France had major problems with its nuclear power, and these factors have combined to result in very high prices for gas, electricity and some other types of energy.
How does this affect Lantmännen's global business?
A: It has a direct impact through increased energy costs in our production. However, our work on reducing the use of fossil fuels has meant that we have been affected less than we would otherwise have done. In some of Lantmännen's businesses, renewable energy with a relatively stable price has been a clear competitive advantage. IndiIndirectly, the increased energy prices have resulted in higher prices for both raw materials and inputs.
Is it possible to say something about the future?
A: Much suggests that the worst is behind us, and energy prices appear to be stabilizing, but at a clearly higher level than we were previously used to. A mild winter and reduced gas use in industry have meant that there are plenty of gas stocks in Europe. Even though electricity prices have gone down, we can still expect large price variations. An increasing share of wind power in the production mix will result in low prices when it is very windy and higher prices when the weather is calm.
Finally, tips for us private individuals to reduce our energy use?
A: As a private individual, heating, hot water and any charging of an electric car account for the largest part of energy use. If you live in your own house and have electric heating, you should definitely investigate alternatives, such as, district heating or a heat pump. Being able to be flexible with your electricity use by heating water, washing dishes, doing laundry and charging your car at night or when it is very windy will continue to be a way to both save money and contribute to the stability of the electricity system.