Oilon is an international energy technology company specialising in burners and heat pumps. Hannah Barnett spoke to Tero Tulokas, CEO, and Sami Pekkola, Sales Director, to find out how the family business plans to achieve its sustainability goals.
Oilon is known for manufacturing high-quality heat pump solutions that are suitable for the most demanding industrial uses. It is also a pioneer in low-emission combustion technology, with decades of experience in the field. This combination gives the company a special niche in the market.
“We are forging the path from fossil fuels to renewables by offering both combustion technology and heat pumps in our product range,” said CEO Tero Tulokas. “That is something many of our competitors don’t do. We are privately-owned, internationally based and nimble. We can help our customers move to renewables as we already have the necessary connections and know-how.”
A global operation Oilon was founded in 1961 and began exporting products in 1963. It now has a turnover of €85 million and over 400 employees, two thirds of whom are
based in Finland, the rest scattered globally in countries including Brazil, China and the US.
The company first made its name in the burner sector, which still accounts for a significant portion of revenue. It has also manufactured residential and industrial heat pumps for several decades, which began as a business decision as much as an environmental one.
“In the 1990s, Oilon started to think seriously about climate change,” explained Mr Tulokas, “and to consider our future as a business. We didn’t want to be like Kodak and become obsolete. So, we started to build residential heat pumps in 2002.”
In the same year, Oilon also established its first factory in China. An acquisition by an industrial heat pump firm in 2011 aided the development of the industrial heat pump arm. In 2014, the company expanded to another significant location when it opened a factory in the US and
Oilon was recently approved to sell industrial heat pumps to the North American market.
Sustainable goals
Oilon is part of the UN Global Compact, the world’s largest corporate sustainability initiative. The company has pledged to align its strategies and operations with the ten principles on human rights, labour, environment and anti- corruption.
As a global business, Oilon is well- positioned to promote these principles through internal efforts and co-operation. The company offers a diverse workplace, upholding high ethical standards in its business operations. Occupational health and safety is regularly monitored and audited, and Oilon holds ISO 14001 certification.
“ISO 14001 was the starting point,” said Mr Tulokas. “We are also a member of
the ABB Energy Efficiency Movement and have been ranked at bronze level by the EcoVadis certification. We are aiming to reach silver in 2024 and are participating in different forums driving sustainability in the company. Our business is related heavily to sustainability, so it’s very important that we are keeping ahead in this field.”
The company were early adopters of science-based targets according to the Paris Climate Act. By 2030, Oilon intends to reduce its own direct and indirect greenhouse gas emissions by at least 46%. The primary means of reaching these targets include using ground source heating at production facilities, utilising solar power and investing in upgrades that reduce energy consumption at sites.
“The target is for 2030, but we are ahead of schedule and have almost reached that
now,” said Mr Tulokas. “We are continuing to explore Scope 3 emissions, because that’s the biggest share of the footprint that we have.”
“The science-based targets are a very significant step,” Sales Director Sami Pekkola added: “and it really makes a big difference – because we must not only report everything, but analyse a lot of data about where the carbon footprint of the company is coming from.”
The importance of innovation Research and Development plays an important role at Oilon, with about 6% of revenue re-invested into R&D. The company has launched some truly innovative products into the market, including patented technology to reduce emissions for its burners.
“With this equipment we can go below five milligrams per nominal cubic metre of
NOx,” Mr Tulokas explained. “Usually that level is only possible to reach by secondary means, but we can reach it by direct firing. NOx is harmful for the environment, so this achievement is very beneficial.”
Back in 2010, the company began selling low-NOx gas burners that reduced CO 2 emissions from a district heating system in Beijing, reducing CO2 emissions by around 50%.
“And in 2016, Beijing changed all its gas combustion to the low-NOx technology, and we were able to reduce emissions again,” said Mr Pekkola. “We are now providing reduced-emission heating for roughly 30 per cent of the 20 million-plus population there.”
The majority of heat pumps delivered by Oilon are IoT-enabled, giving customers the option to monitor and manage devices over a remote connection and generate reports
covering device utilisation, energy output and cost-savings. Corresponding systems for burners are currently under development.
Making a mark
Putting its breadth of knowledge into action, Oilon recently partnered up with Finland’s leading energy company, Fortum.
Microsoft is building a data centre complex in Helsinki, where Fortum will recover the waste heat and reuse it for district heating. This is set to be the biggest heatrecovery project of its kind in the world. Oilon will supply the industrial heat pumps; the largest delivery in the company’s history, valued at approximately €15 million.
“We are very proud of that project,” said Mr Tulokas. “District heating is very famous in Finland, and a growing trend in other countries, as a highly efficient way to connect large waste heat
streams. Finland is leading by example in this area.”
Forging a path into the future, Oilon is set to continue to maintain these strong relationships with customers and suppliers.
“We work closely on R&D with our suppliers,” said Mr Pekkola. “For example , with a famous German national technology conglomerate: when they want to develop their controls, they contact us, and we develop them together. This helps us too, and that way of working is really important in order to be able to employ the best products in the market.”
Oilon’s target is to double revenue over the next five years, as the heat pump market rapidly expands. That is also set to be a challenge, as the company will need to hire and train new staff across its international locations, while upholding its sustainable ethos.
Oilon has made a special commitment to 7/17 UN Sustainable Development Goals:
#7 Affordable and clean energy.
#8 Decent work and economic growth.
#9 Industry, innovation and infrastructure.
#11 Sustainable cities and communities.
#12 Responsible consumption and production.
#13 Climate action.
#17 Partnership for the goals.
For Mr Tulokas, though, running a global business and fighting climate change is all in a day’s work.
“I think it’s important to contribute to meaningful change,” he concluded. “That is certainly the biggest motivator for me. I’ve been in the energy industry for my whole career. The dynamic international community that we have at Oilon is very significant. There is so much going on; cooperation with different nationalities, travelling around the world, meeting our colleagues and peers in the industry. It’s very exciting.” n
