Fortum Corporation is an international energy group formed through the combination of two
Finnish industrial groups, IVO Group, the power company, and Neste Group, the oil and gas
company. Fortum has extensive operations in the energy sector in the Nordic countries, the
Baltic Rim and in a number of other markets worldwide. Fortum's core business is energy: oil
and gas, power and heat, the operation and maintenance of power and other plants, and
Industrial networking is rapidly becoming a preferred strategy for realizing lower costs and
improved competitiveness. Eco-efficiency is a strategy which has as its objective the
improvement of environmental performance within a facility or firm. When these two strategies
are combined, additional opportunities for environmental and economic benefits result. This
approach is known as Eco-Industrial Networking (EIN). By co-operating, partners in EIN can
enhance their environmental and economic performance and, as a result, achieve a combined
benefit that is greater than the sum of the benefits which each company would realize from
optimizing its individual performance alone.
Sustainable development concepts such as EIN should help to provide solutions to current
global and local problems experienced by society and the economy. Certain types of networks
and co-operation cannot be described in global or general terms. For example, sustainable use
of raw materials and energy can only be properly defined and evaluated in the context of
local/regional opportunities and potential.
An excellent example of utilizing the local/regional potential for the environmental and economic
benefit of all the parties is the energy production system (and other forms of co-operation that it
has initiated) in the city of Jyväskylä, Finland.
The Previous Energy Generation System
The previous system of energy generation in the area was made up of several independent
components. The main units were:
two medium-scale heavy fuel-oil CHP (Combined Heat and Power) plants,
one medium-scale peat heat boiler,
one medium scale biomass heat boiler, and
some heavy fuel-oil heat boilers.
The Eco-Industrial Network
The partners in the eco-industrial network at Jyväskylä are:
Jyväskylän Energiantuotanto Oy, energy producer in which Fortum Power and Heat
holds 60 % and the city of Jyväskylä 40 % of shares
Fortum Power and Heat Oy
Fortum Service, operation and maintenance of power plants
the city of Jyväskylä and rural areas surrounding it
Jyväskylän Energia Oy, a local energy company
Pappilanvuoren Lämpö Oy, a local district heat company
Metsä-Serla Kangas Paper Mills, whose products include paper for printing and office
Viherlandia, a horticulture, sales and exhibition centre
UPM-Kymmene Schauman Wood Oy, a plywood producer, and
local fuel suppliers
The concept of co-operation in the production of energy was first introduced in the Jyväskylä
Region in the 1980's, when it became necessary to build new capacity. It proved to be more
efficient to build one single power plant to serve industry, the city and the rural areas. The
district heat for Viherlandia is extracted from the district heating waters returned from the town
and the condensing water of the paper mill.
The 1993 boiler modification to decrease air emissions has also made it possible to increase
the use of wood fuels.
Most of the heat required in the district is generated at the Rauhalahti Power Plant. Some heat
is also provided by the Savela Power Plant. The primary energy consumption of the system is
about 2100 GWh/a. Energy is produced mainly using fuels available locally, of which the most
important is milled peat. During recent years the use of surplus wood from neighbouring
industrial plants has grown significantly. Its use today is high and any further increases will have
to be met by forest processed chips. Using fuel from the locality provides employment,
particularly to small communities in sparsely populated area.
About 900 GWh/a district heat is produced in the system, the main user being the city of
Jyväskylä. The total process steam production of the system is about 500 GWh/a and electricity
production is close to 400 GWh/a. The remaining 300-400 GWh/a represents the losses. The
Combined Heat and Power (CHP) production increases overall efficiency to 80-90 % compared
to 30-40 % for conventional condensing power plants.
The ash produced by Rauhalahti Power Plant as a by-product is used for landscaping the
nearby park and garden area, Viherlaakso, situated between power plant and Viherlandia.
Viherlandia Garden Centre, Viherlaakso Theme Park and Kammi Environmental Information
Centre are among the most popular tourist attractions in the region.
The biggest users of energy from the system are the city of Jyväskylä and the Paper Mills of
Metsä-Serla Kangas. In the previous energy system, the city of Jyväskylä had an oil-fired CHP
plant and also produced district heat with peat and oil-fired boilers. Metsä-Serla had its own
heat and electricity generation system. The power generation capacity of the Current System is
roughly double that of the previous one, due to the new combined heat and power (CHP)
capacity in Rauhalahti. The heat production capacity has increased, although the same amount
of heat could also have been produced in the previous system - meaning that the exergy of the
fuels is better utilized in the Current System.
Heat production is more centralized in the Current System. Most of the heat products have been
produced in the Rauhalahti boiler, while several separate boilers would have been used in the
earlier system. In the large boilers (centralized system), the efficient flue gas cleaning systems
are cost-effective and therefore usually more efficient than in small- scale boilers.
In order to evaluate the environmental benefits of the Current System, alternative, different
systems have been constructed for comparison. Some of the results are presented here:
Comparison System 1 is the previous system without any compensation for the lower
electricity generation compared with the Current System.
In Comparison System 2, some separate power production has been added to
compensate for the higher power generation capacity of the Current System. In all
systems, it has been assumed that the production of district heat and process-heat
would be at the same level. The latter comparison shows the total environmental
benefits of the increased CHP production and the increased centralization on a regional
Table 1. Energy generation in compared systems
Current System Comparison System Comparison System
(GWh/a) 1 2
(Previous system) (GWh/a)
District heat 880 880 880
Process heat 470 470 470
Electricity generation 420 190 420
Electricity generation in the Current System is about 420 GWh/a and, without any
compensation, Comparison System 1 would generate about 190 GWh/a of electricity annually.
In the preceding case, the use of primary energy use would decrease by about 15%, if the
Current System were to be replaced with previous one. Fuel consumption would increase by
more than 10%, if the Current System were to be replaced by Comparison System 2, in which
energy production would be at the same level as in the Current System. There is a difference in
fuel distribution between the systems being compared. The Current System reduces the
consumption of heavy fuel-oil, which has been mainly replaced by indigenous, local fuels such
as peat and biomass. Fuel consumption levels are shown in figure 1.
Figure 1. Annual fuel consumption levels of the Current System,
Comparison System 1 and Comparison System 2.
In the Current System, sulphur dioxide (SO2) emissions are more than 30-40% lower than in the
alternative systems described above. This has implications to the local air quality. Air quality
model calculations show that the implementation of the Current System has had beneficial
impacts on the local air quality. Reasons for this reduction are the energy efficiency of the
Current System and the lower sulphur contents of the indigenous fuels compared to heavy fuel-
Emissions of nitrogen oxides (NOx) are 30-50% lower in the Current System than in the
alternative systems. So-called fluidized bed combustion, which is used in the current Rauhalahti
power plant, gives rather low specific NOx emissions.
Particle emission in the alternative systems would be more than double that of the Current
System. Rauhalahti power plant has been equipped with an efficient particle precipitator,
something not commonly used in small-scale oil-fired heating boilers.
Without any compensation for the lower electricity production of the previous system, CO 2
emissions would be about 25% lower than in the Current System. Carbon dioxide (CO 2) specific
emissions from oil are lower than specific emissions from peat. Although oil is partly replaced by
peat, the CO2 emissions of the Current System are more than 10% lower than the Comparison
System with compensated power production. This could be explained by the energy efficiency
of the Current System and the increased use of wood-based fuels (biomass).
Table 2. Emission reductions resulting from the current co-operation compared to alternative
systems described (the lower limit assumes no compensation of increased electricity production
in the Current System; the higher limit assumes that the electricity gap between the Current
System and the alternative previous system would have been covered by peat condensation
Emission type Annual reduction
SO2, t/a 750-1250
NOx, t/a (as NO2) 470-860
Particles, t/a 90-100
CO2, 1000 t/a -130-100
without any compensation for lower electricity production, the comparison system studied
would have given lower CO2 emissions than the Current System
CHP technology has been used in Finland for decades. In this case two alternative ways of
implementing a regional CHP system have been studied. Compared to more typical solutions
where the energy supply is based on separate production of power and heat, CHP production
reduces CO2 emissions by more than 50%.
Co-operation such as the one described means lower production costs and new revenue
streams for the energy company. Selling steam and heat to consumers increases sales revenue
by 200 % compared to production and selling electricity alone. For the customer, the cost of
energy is lower than if they produced it themselves. It has been estimated that the benefits to
customers of this co-operation can be valued at roughly Euros 3 million/year.
There are other economic benefits as well for the city of Jyväskylä and local communities alike,
from added employment opportunities generated by the use of local fuels and from higher
revenues from tourism.
Co-operation in the production of energy between Fortum, the local power company and
consumers in and around the city of Jyväskylä has created substantial environmental and
economic benefits for the whole region and all the parties involved.
Main environmental benefits are:
10 % lower primary energy consumption
10 % lower CO2 emissions due to increased energy efficiency and use of local
renewable wood fuels
40 % lower SO2 emissions
50 % lower NOx emissions
Improved local air quality
Utilization of ash produced in the power plant, for landscaping
Main economic benefits are:
Lower energy production costs and new revenue streams for the power company
Lower price of energy for consumers
Increased employment in the region due to use of locally available fuels
The Added Value to Fortum and the Sustainability Potential
CHP technology is an essential part of eco-industrial network in Jyväskylä. CHP technology has
been used in Finland for decades.– Fortum has implemented and participated in numerous
CHP projects world-wide since the 1970's. The projects are carried out in co-operation with
customers from various industries as well as communities. Currently the electricity production
capacity of Fortum's CHP plants is more than 1600 MW and the thermal capacity over 2200
MW. The power plants are using a variety of fuels including coal, gas and biomass as well as
Sustainable development and economic growth require new energy production capacity and the
challenge is to provide it in the most efficient and environmental-friendly way. CHP plants offer
an attractive solution because they have high overall efficiency and use emission control
technology that is both simple and effective. CHP plants can burn local fuels and industrial
waste, which enables improved levels of energy self-sufficiency.