CEO's review
Aiming at carbon-neutral energy production
We have managed to keep the plant well-functioning and have maintained a high usability rate – 94,5 %.
Year 2023 can be characterised as eventful but also a challenging time. We live in a rapidly changing world, and changes have also reflected to Westenergy’s operating environment. The energy transition has caused challenges to energy production and delivery, and changes occur in the energy environment currently almost daily. In addition, the waste market in Finland has been in transition during the recent years as waste-based fuels have replaced coal, peat and partly also wood biomass in energy production. The recycling goals are also relatively ambitious. It has become more challenging to control the quality and quantity of the waste used in energy production, and due to these changes, also Westenergy must be more careful regarding the materials that can be used in energy recovery. It is important to consider the obligations outlined in the environmental permit as well as the sustainable and safe way to operate the plant. Regardless of the many challenges in 2023, the year can be characterised as successful. We have managed to keep the plant well-functioning and have maintained a high usability rate – 94,5 %. We produced 386 gigawatt–hours of district heat and 82 gigawatt–hours of electricity.
Due to changes in the operating environment, also Westenergy has started to explore possibilities to utilise imported household waste in addition to municipal household waste. Non-recyclable waste is a problem in many European countries, and landfilling is still relatively common in Europe. Additionally, there is no demand or infrastructure for district heat as it is in the Nordic countries. It is, therefore, reasonable to transfer non-recyclable waste where it can be utilised efficiently, environmental impacts are thoroughly assessed, and the residual materials can be refined and recycled. The climate doesn’t recognise national boundaries, and it is, therefore, important to solve problems in the waste and energy sector on a European scale. Westenergy has an excellent possibility to be a part of the solution.
The project will have a significant positive environmental impact and a strong influence on the development of sustainable circular economy in Europe.
We work actively to utilise and refine waste and residual materials as efficiently as possible. Our goal is that already within few years, carbon dioxide formed in energy production will be captured and utilised. At the end of last year, our CCU project took significant steps forward. We signed a letter of intent with CPC Finland Oy and Prime Capital AG on building a full-scale carbon capture plant, and in the beginning of this year, we founded the project company ECCU Oy who will proceed to carrying out the project. Carbon dioxide will be delivered to Koppö Energia’s power-to-x plant in Kristiinankaupunki where it will be utilised in the production of synthetic methane. Ministry of Employment and the Economy granted an investment subsidy of 20 million euros to the project relatively quickly which is a good indication that carbon capture is the right direction to develop Westenergy’s plant. The investment is significant, but we have a strong belief in the profitability of the project. The project will have a significant positive environmental impact and a strong influence on the development of sustainable circular economy in Europe.
Although Westenergy’s operating environment has become more challenging, I believe that Westenergy has good possibilities to cope amid the changes. Last year we renewed Westenergy’s organisation so that we would be better equipped to respond to the challenges. Work descriptions in maintenance, production and safety management were clarified and differentiated, and this has made responsibilities clearer. Last year, we were able to use the new temporary storage area and hall, and we tried out baling waste and dismantling the bales. These experiences are useful regarding handling imported waste in the future.
Waste-to-energy sector operates in a challenging and constantly changing regulatory environment. Therefore, we consider it important to have an open dialogue with the decision-makers in Finland and in the EU. Our interest representation team got new resources, and the group has been active in representing interests last year. We have also learned a great deal.
Functional IT management and cyber security are of key importance to any company regardless of its size. We have developed our operations successfully during the last few years also in this area. More and more matters and operations are managed electronically with the help of different systems, and they are expected to be reliable and easy to use. Last year, we focused on developing our HR, maintenance, and financial administration & contract management systems.
In the beginning of the year, Westenergy’s owner basis widened, and hence the operation area became more unified as Ab Ekorosk Oy became one of the shareholders of the company. Westenergy now was seven municipally owned waste management companies as shareholders. I want to thank all the owner companies, Vaasan Sähkö Oy, and other co-operation partners for good co-operation in 2023.
We work actively to enable functional circular economy, and we want to contribute to improving the sustainability of the waste-to-energy sector and continue to work for achieving these goals also in 2024.
Olli Alhoniemi
Managing Director, Westenergy
