Green Transition Opportunities in Satakunta

Green Transition Opportunities in Satakunta

Green Transition = clean transition  Mitigating climate change requires phasing out fossil fuels  Transitioning to the use of renewable energy and renewable fuels is paramount  This also includes increasing energy and material efficiency along with the circular economy  The EU's goal is carbon neutrality and a sustainable circular economy by 2050 • With an intermediate goal of 55% emission reduction by 2030  Finland's national climate law stipulates that Finland will be carbon neutral by 2035  New markets for renewable energy and renewable fuels are created through regulation

EU Directives Towards Green Transition  The EU’s “Fit for 55’’ package will guide towards reduction targets and green transition  Emissions trading is the primary method for developing markets  Free emission allowances for industry and energy production will be phased out  Transport and buildings will be included in the emissions trading system  EU goals: • Energy production: 42.5% of energy from renewable sources by 2030 • Industry: 62% reduction in emissions by 2030

Source: European Environment Agency (2021)

EU Goals for Transport  Road transport: • New passenger cars and vans must be 100% emission-free by 2035 • Emissions from new heavy-duty vehicles must be reduced (vs. 2019): - 45 % by 2030 - 65 % by 2035 - 90 % by 2040  Aviation: minimum shares of sustainable fuels • 6 % by 2030 • 34 % by 2040 • 70 % by 2050  Shipping: annual carbon intensity reduction • 6 % by 2030 • 31 % by 2040 • 80 % by 2050

Green Transition Investment Projects  Renewable energy production • Wind farms and solar power plants • Biogas and biofuel plants  Battery value chain production facilities • Battery materials production • Battery cell manufacturing • Battery pack assembly • Battery recycling  Hydrogen economy • Green hydrogen production • Production of synthetic fuels and chemicals (e.g., e-methane, e-methanol, e-ammonia)  Recycling and circular economy facilities  Investment projects related to electrification technologies and materials

Strengths of Satakunta  Finland's strongest electricity grid and abundant emission-free electricity production  The expansion of offshore wind power projects is creating new opportunities  Excellent logistical connections: ports, railways, and highways  Good availability of commodities such as water and bio-based CO2, with ready LNG/LBG infrastructure  Numerous industrial areas for new investments  Industrial parks, industrial ecosystems, and diverse industrial expertise  Innovative battery and technology metals cluster

Finland's Strongest Energy System  Strong electricity grid: 400 kV lines with available production and consumption capacity at main grid substations  Approximately 40% of Finland's electricity is produced in Satakunta  Three nuclear power reactors  Abundant renewable energy production: hydropower, wind power, solar power, and biogas production  Finland's first offshore wind farm  Finland's first LNG import terminal and LNG storages in various parts of Satakunta

Opportunities in Offshore Wind Power  Expansion of Tahkoluoto offshore wind farm (700 MW) is expected to be completed by 20272029  There are multiple offshore wind farm projects in the exclusive economic zone (eez)  International offshore wind center planned for Mäntyluoto, Pori: • Installation and maintenance base for offshore wind farms • Storage and pre-assembly areas for wind turbine components • Loading docks for wind turbine components • Technical service center supporting maintenance operations

E x c e lle n t L og is tic a l C on n e c tion s  Port of Pori • Port operations in Mäntyluoto and Tahkoluoto • Extensive import of bulk products as industrial raw materials • Depth of 15.3 m  Port of Rauma • Finland's third-largest container port • Depth of 12 m  Electrified railway to the ports • Connections to industrial parks  Highways 2, 8, 11, 12, and 23  Pori Airport: runways that can service a full spectrum of commercial aircrafts

Good Availability of Commodities  Water (process and cooling water) • Abundant water resources: Bothnian Sea and Kokemäenjoki River • Available industrial water treatment capacity in Pori's Kaanaa  Gases • Bio-based CO2 : production of about 2.5 Mt/year • Existing LNG storages and distribution infrastructure • Planned hydrogen gas pipeline  Chemicals • Chemical port in Tahkoluoto • Sulfuric acid plant in Harjavalta Industrial Park

Kirkkokallio

Industrial Areas for Investments  Municipal industrial area plans for green transition investments, e.g.: • Pori: Kirrinsanta, Tahkoluoto, Peittoo • Rauma: Lakari, Järviluoto

Tahkoluoto

Peittoo

• Harjavalta: Sievari

Kirrinsanta

• Kokemäki: Kirkkokallio of Kokemäki • Ulvila: Pirunkynsi • Eurajoki: Kuusimäkelä • Kankaanpää: Kirkkokallio of Honkajoki

Pirunkynsi

 The ongoing regional plan includes considerations for industrial expansion needs Sievari

 Study: Green transition investment projects in Satakunta regional plan 2050 Lakari Järviluoto

Kuusimäkelä

Kirkkokallio

Battery and Technology Metals Cluster

Metso

minerals and metal refining research center

 Produces metals, battery chemicals, and metal components for renewable electricity production and storage technology solutions  Turnover: €5.7 billion  Exports: €3.9 billion  Jobs: 8,400

Luvata, Aurubis, Cupori copper products manufacturing

Fortum

battery materials recycling plant

Neorem Magnets

 Over 80 years of industrial history

permanent magnets manufacturing

 The cluster is expanding as existing companies grow their operations and new businesses join

Nornickel Harjavalta nickel refinery producing battery chemicals (NiSO4,& CoSO4)

Boliden Harjavalta metal refining (Cu, Ni)

Growing Demand for Technology Metals with Green Transition

Satakunta Technology Metal Cluster

Battery Value Chain Companies in Satakunta RAW MATERIALS

BATTERY CHEMICALS

PRECURSOR & CAM MATERIALS

CELL MANUFACTURING

BATTERY PACK ASSEMBLY

BATTERY SYSTEMS

RECYCLING AND RE-USE

Investments in the Battery & Technology Metals Cluster  Completed: • Battery material plant: BASF Battery Materials Finland Oy, Harjavalta • Battery material recycling plant: Fortum Battery Recycling Oy, Harjavalta • Production expansions: Boliden Harjavalta Oy, Norilsk Nickel Harjavalta Oy, Luvata Pori Oy  Planned: • Battery material recycling plant: Fortum Battery Recycling Oy, Pori • Recycling vanadium production plant: Novana Oy, Tahkoluoto, Pori • Battery factory: Æsir Technologies Inc, Kokemäki  Investment value: over €1 billion

Renewable Energy Investments in Satakunta

Production In preliminary planning phase

 Wind Power (2024) • Capacity in use: 203 MW • Additional capacity under construction: 212 MW • Awaiting investment decision: 700 MW • In the permitting phase: 800 MW • In preliminary planning phase: 3 500 - 4 000 MW  Solar Energy Production (2024) • Capacity in use: 35 MW • In the permitting phase: 2 000 MW • In preliminary planning phase (publicly announced): 1 000 MW

Awaiting investment decision or in the permitting phase In use and under construction

 The value of new investments: approx. €12 billion In use

In the permitting phase

Renewable Fuel Production in Satakunta  Biogas Production • Capacity in use: 95 GWh/year • Planned: 130 GWh/year  Green Hydrogen Production •

Capacity in use: 20 MW

 Synthetic Fuel Production • E-methane production: 1 kt/year (20 GWh) • Planned e-methane production: 24 kt/year (330 GWh) • Planned e-ammonia production capacity: 280 MW  Investment value: approx. €1 billion

The Potential for Green Hydrogen Production in Satakunta Bio-based CO2 gas produced in Satakunta: 2.4 Mt/year. Assumption: 10% would be captured Hydrogen: (CCU) and used for 45 kt/year methanation

New renewable electricity production in Satakunta by 2030 estimated at 8 TWh/year Production of synthetic e-fuels

Purified water, e.g., from the Kokemäenjoki River: 1,500,000 m³/year + plenty of cooling water

Excess heat generated: 2.8 TWh/year = more than the annual district heating production in Satakunta

Green hydrogen: 150 kt/year

35 kt/year

Hydrogen for other uses

Hydrogen: 70 kt/year By-product oxygen: 1,350 kt/year

E-methane: 290 kt/year

Excess nitrogen produced in Satakunta: 320 kt/year.

Assumption: all of it would be used for ammonia production

Approx. 30% of Finland's heavy transport fuel needs

Ammonia: 390 kt/year

Twice the amount needed for nitrogen fertilization in Finnish agriculture

Prizztech in Green Transition  Our experts provide: •

Roadmaps and strategic plans

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Preliminary and feasibility studies

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Preparatory infrastructure plans, such as a proposal for hydrogen pipeline routes

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Marketing and promotional plans for industrial parks

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Overview of infrastructure requirements for various investment projects for municipalities

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Information collection for investment inquiries

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Communication with ministries, regional councils, local municipalities, and companies

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R&D activities in cooperation with local universities and educational institutions

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Facilitating partnerships in business networks

Jarkko Vuorela

Minna Haavisto

Marjut Vähänen

Pirjo Taube

Matti Luhtanen

Iiris Puhakka

www.prizz.fi

Mikko Kotiranta

Sami Leppimäki

firstname.lastname @prizz.fi