Diversification Key to Finland's Goals Around Energy and Environment

Finland has a diversified energy mix, comprised mostly of renewable energy resources and nuclear power. Recent power generation project announcements highlight this diversification, which has led to industry analysts saying Finland will likely be the European Union’s (EU’s) first carbon-negative economy.

New projects include an air-to-water heat pump at a complex in Helsinki, a hybrid wind-solar installation in the North Ostrobothnia region, and a Google-backed data center energy initiative in Hamina. Several solar power projects also are in the works. Nuclear power also remains important to Finland; the country has five operating reactors supplying about one-third of the nation’s electricity, according to government data.

“Last year, 94% of the electricity produced in Finland was emission-free, with 54% coming from renewable sources. As the country is nearing the achievement of its EU-mandated renewable energy targets for 2030, industry and policymakers are shifting their focus to reaping the full benefits of sector integration,” said Anssi Klemetti, a partner at Finnish consultancy Blic, who works on low-carbon fuels. “In other words, the big question becomes how the high share of low-emission electricity can be leveraged to decarbonize other sectors such as transport or manufacturing.”

Francois Le Scornet, president and senior market intelligence consultant with France-based Carbonexit Consulting, told POWER, “As you know, in 2024, Finland’s energy mix is increasingly reliant on both renewables and nuclear power. With the OL3 [Olkiluoto 3] reactor now fully operational, nuclear power provides around [a third] of Finland’s electricity, and this reactor alone accounts for approximately 15% of the total electricity generation. This boost in nuclear energy is critical for Finland’s goal of becoming carbon neutral by 2035.”

Le Scornet added, “However, there is an ongoing debate about how much further nuclear energy should be expanded, as some advocate for prioritizing wind and bioenergy to meet future energy needs more sustainably for instance. I believe this tension will play a key role in shaping Finland’s energy strategy in the coming years. Also interesting is the integration of waste-to-heat systems and hybrid wind-solar farms.”

The waste-to-heat systems and hybrid renewable energy installations are among the innovative projects planned or already underway in Finland, as the country continues its pivot away from fossil fuels in its effort to hit environmental targets. Klemetti told POWER, “One obvious answer lies in harnessing the rising share of wind power, especially on the country’s western coast, to produce green hydrogen with electrolysers. This can then be combined with biogenic carbon dioxide to produce various synthetic fuels for aviation and maritime sectors. Thanks to Finland’s turn away from coal and peat as a heating fuel, the country now has access to vast quantities of biogenic carbon dioxide from the use of sustainable biomass in heating [in 2021, the energy sector’s biogenic CO ₂ emissions were more than 14.6 million tons]. These factors, combined with a stable electrical grid and good access to export markets from western ports could make Finland a major player in the hydrogen revolution.”

1. The Patola district heating plant in Helsinki, Finland, will be home to the world’s largest air-to-water heat pump. Courtesy: Helen Oy

Helen Oy, a Finnish energy company, recently chose MAN Energy Solutions to supply an air-to-water heat pump as part of Helen Oy’s Patola heating plant complex in Helsinki (Figure 1). The new complex will include the industrial-scale heat pump and two 50-MW electric boilers. The air-to-water heat pump plant will be the largest in the world, according to MAN, with a full heating production capacity ranging from 20 MW to 33 MW, depending on the air temperature. The unit can operate at outdoor temperatures as low as –20C (–4F), using carbon dioxide as the natural refrigerant in a closed-loop system. The heat pump will be powered with electricity produced by renewable energy resources, and will utilize ambient air as a thermal energy source to increase the water temperature and meet the requirements of the district heating network. Officials said the technology will supply about 200 GWh of heat to about 30,000 households in Helsinki, reducing CO ₂ emissions by about 26,000 tons.

“We are very proud to support Helen in their efforts to achieve carbon neutrality in Helsinki. Our heat pump technology provides an economically competitive and efficient way to harness climate-neutral heat from ambient air, even at cold temperatures of –20 degrees Celsius,” said Uwe Lauber, CEO of MAN Energy Solutions. “Urban district heating projects that utilize climate-neutral technologies are essential for advancing global efforts to reduce carbon emissions. We are excited to see our heat pump solution play a key role in driving the energy transition forward.”

Juhani Aaltonen, vice president of Green Investments at Helen, said, “Helsinki has set the ambitious goal to become carbon neutral by 2030, and transitioning our heating system is crucial to achieving this. Once completed, the heat pump plant will significantly reduce the CO₂ emissions caused by heating, bringing us closer to our net-zero target. In addition, the new plant is likely to create price stability for customers, as its production is easily adjustable.” The Finnish Ministry of Economic Affairs and Employment has granted Helen an energy subsidy for the heat pump plant in recognition of its emissions reduction potential. The plant is expected to come online during the winter of 2026–2027.

2. At the heart of the new large-scale heat pump in Helsinki is a hermetically sealed HOFIM (high-speed, oil-free, integrated-motor) compressor by MAN Energy Solutions. Courtesy: MAN Energy Solutions

MAN said the basic principle in its heat pump technology “involves using electrical energy to raise low-temperature thermal energy to a higher, usable level. A standout feature of MAN’s solution is its use of toxicologically and environmentally safe CO₂ as a refrigerant for the entire system-cycle, which allows to deliver heat at temperatures of up to 90C. Additionally, the solution enables rapid power-balancing of the electrical grid, supporting the integration of intermittent power generation like solar and wind.” The company added, “The heart of Patola’s heat pump system is an oil-free, hermetically-sealed HOFIM motor-compressor [Figure 2], which will be manufactured and tested by MAN Energy Solutions in Zurich, Switzerland. The compression unit utilizes a high-speed motor and active magnetic bearings, enabling it to operate without requiring a dry gas seal system and the complete oil system.”

The German-based VSB Group, via its subsidiary VSB Finland, recently said it had obtained the necessary permits to launch what would be one of the largest hybrid wind-solar projects in Europe. The Puutionsaari hybrid power facility, located in the North Ostrobothnia region, combines a 350-MW wind farm with a 100-MW solar farm. The installation will feature 49 wind turbines, each with 7.1 MW of generation capacity, in addition to the solar array. Seppo Tallgren, managing director of VSB Finland, in a statement said the hybrid nature of the project supports the future application of power-to-x technologies. “A comprehensive hybrid [project] also enables other new technologies, such as the production of green hydrogen, through more consistent power generation,” Tallgren said.

3. Germany’s VSB Group is building the 147.5-MW Karahka wind farm in Finland, which is expected to come online by the end of 2024. Courtesy: VSB Group

Construction of the hybrid farm is expected to begin next year, with commissioning expected in 2028. Officials said the facility will be connected to the national grid without the need to build new transmission infrastructure. VSB Group said the project represents investment of more than €500 million ($554 million). Finnish officials have said such hybrid projects that can utilize existing infrastructure offer greater flexibility and reliability to the power grid. VSB also is working on other onshore wind projects in Finland, including the 147.5-MW Karahka wind farm (Figure 3), also located in the North Ostrobothnia region. Karahka will feature 25 Nordex N163/5.X turbines and is due for commissioning by year-end.

“Finland has a district heating system in almost every town, which makes it possible to reuse waste heat from data centers. But the fact that major corporations have all established significant data centers inside the country plays a big role in making this concept a success,” said Irina Tsukerman, a geopolitical analyst with New York-based Scarab Rising. Referring to the Puutionsaari hybrid power facility, Tsukerman added, “The wind farm will be part of a hybrid wind and photovoltaic park, which, once completed, will not only be the largest renewable energy project in VSB’s history, but also one of the most significant hybrid park projects within all of Europe.”

Tsukerman told POWER, “These hybrid farms and projects are becoming increasingly popular in Finland for a few reasons. They provide a stable supply of energy throughout the year by combining the complementary strengths of wind and solar power. Wind turbines can generate power at night and during windy conditions, while solar panels are most effective on sunny days. And Finland is a small country with a good balance of these conditions. Hybrid farms also ensure that the projects are cost-effective, unlike the wind farms in Germany, which proved to be overly costly due to the number of wind turbines, and their limitations. Hybrid systems can help improve the baseload of the electricity system, which is the minimum amount of power needed at any given time. Hybrid farms can be easily connected to the national grid without the need for additional transmission lines, saving on labor costs and other additional costs. They also maximize efficiency by harnessing the strengths of wind and solar power.”

Google recently announced its project designed to cool a data center in Hamina, in the south of Finland, is being expanded into a district energy project for the community. Google said that next year it would launch its first offsite heat recovery project, working with local utility Haminan Energia. “Heat coming out of our Finnish data centre will be rerouted and provided free of charge,” Google wrote on its website. “We will be recovering heat at the Google Hamina data center, which operates today with carbon-free energy at 97%. This means the recovered heat will also be 97% carbon free.” Haminan Energia said the project will meet 80% of the local district heating network’s annual demand. Google has a major presence in Hamina, a port city on the Gulf of Finland. The company has said that since 2011 it has pumped water from the nearby bay to cool its servers. A company official said, “We’ve long wanted to channel our recovered heat offsite to be used by the local community.”

The district heating project was announced at the same time as Google said it would invest €1 billion ($1.1 billion) into a seventh expansion of its Hamina data center. The Helsinki Times quoted a Google official as saying the investment “will help to unlock the potential of artificial intelligence for companies not only in Kymenlaakso [the region where Hamina is located], but across Finland and Europe.” Finnish officials have said Google has been the biggest investor in Finland for the past decade.

“Finland is harnessing the power of waste-to-heat technology to meet its heating and cooling needs,” said Daniel Jarrett, CEO of Australia-based Queensland Solar and Lighting. Jarrett has experience in researching global energy markets, including during his time as Energy Manager at ActewAGL, an Australian utility. “This process takes heat from burning trash and industrial processes and turns it into thermal energy that can be used. The technology does two things: it provides a long-lasting source of heat and a big boost to reducing the amount of trash that ends up in landfills. In Finland, waste-to-heat plants are often connected to district heating systems. This makes it easy to get heat to homes and businesses in cities,” he explained.

Jarrett told POWER, “In Finland, the first step in the waste-to-heat process is usually collecting and sorting household and business waste. Then, things that can’t be recycled are burned in facilities that are specifically made for that purpose. The heat that is released during this burning is collected and used to make steam, which can be used to heat directly or to turn turbines that make electricity. This approach, which produces both heat and electricity, makes the system even more efficient as a whole.” Jarrett added, “Finland’s waste-to-heat plants have high-tech pollution control systems to keep the damage to the environment to a minimum. These systems make sure that the emissions from burning things meet strict rules for the environment. Also, the ash that is made when things are burned is often recycled and used in building materials. This helps reduce waste even more and supports a circular economy.”

Klemetti said bringing various industries together on energy projects is likely to continue. “Sector integration could progress even further. I see potential in harnessing unavoidable process gases from energy production and manufacturing. Interesting things are happening with syngas fermentation,” he said. “Companies like Synata Bio from the U.S. now have the ability to take waste offgases from processes like chemical production or municipal solid waste incineration and ferment them into ethanol. Crucially, such ethanol can then be processed into low-carbon chemicals and sustainable aviation fuel, which, in the latter case, would help the EU fulfill its new mandate in greening the aviation sector.”

—Darrell Proctor is a senior editor for POWER.