Sweden sets out ambitious plans for an oil-free future

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 recently, 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.

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.

Sahlin said: "A Sweden free of fossil fuels would give us enormous advantages, not least by reducing the impact from fluctuations in oil prices," she said.

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.

U.S. President George W. Bush surprised analysts by saying that the United States was addicted to oil and should greatly reduce imports from the Middle East.

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 per cent of all the energy consumed came from renewable sources the EU average is 6 per cent.

The Swedish Government is working with carmakers Saab and Volvo to develop cars and lorries that burn ethanol and other biofuels.