EPV Heat
In 2021, the EPV Heat business area invested in a new electric boiler in Vaasa and an electric boiler and district heat accumulator in Seinäjoki. These are important components of the clean heat production system of the future and an essential part of EPV’s sector coupling capacity with the ability to regulate up or down. Thanks to the Vaskiluoto thermal energy storage (TES) facility, which had its first year of full operation, it was possible to provide the owners with more cost-effective electricity.
Investments in electrified heat production
EPV Heat has made significant investments in 2021, which perfectly support EPV’s strategy of New Electricity Revolution® and its mission to achieve zero-emission energy generation and consumption. These new investments – electric boilers and a district heating battery – are strongly linked to electrified heat production and energy storage. Electric boilers allow EPV to combine district heat production with the electricity market and exploit the volatility of the electricity market for heat production when prices are low.
The role of such investments will become increasingly important as EPV’s energy portfolio shifts towards carbon neutrality and the use of renewable weather-dependent energy increases.
“Investing in electric boilers and a thermal battery will make EPV’s energy system even more flexible, as the production volumes of renewable energy cannot be fully predicted. For example, electric boilers add flexibility and create a base load when wind power generation volumes are high. Whoever has the most flexibility will do best in this market,” says Mats Söderlund, Vice President of EPV Heat.
EPV also set up a dedicated technology team around electrified heat generation and heat storage, which is doing important background work for new investments. The team has studied a range of technologies, including the simulation of a massive pit thermal energy storage (PTES) facility as part of the energy portfolio of the future.
Electric boiler commissioned in Vaskiluoto
In 2021, Vaasan Voima invested in a 40 megawatt electric boiler at the Vaskiluoto power plant. The investment decision was made in the spring, and the electric boiler was commissioned in December. The Vaskiluoto power plant provided the perfect infrastructure for the construction of the boiler, which enabled its completion in a short timeframe.
“An electric boiler is like a large kettle that allows us to produce heat with electricity without emissions. The boiler will also support the adjustment possibilities of the electricity system as renewable energy production increases. With the help of an energy storage system, heat can be produced by an electric boiler when production from weather-dependent systems is high, and heat can be consumed when it is needed,” says Söderlund.
Construction of the Seinäjoki electric boiler and district heating battery was begun
In June, another investment decision was made to build a 40 MW electric boiler and a district heating battery at the Seinäjoki power plant. The battery has a volume of 10,000 m3 and can store up to 400 MWh of energy. The investment will be carried out at Seinäjoen Voima and, like the Vaskiluoto power plant, the Seinäjoki power plant site provides an excellent operating infrastructure for the project. The project was launched soon after the investment decision and now construction is in full swing.
“This heat production combination provides excellent support for the needs of the energy system of the future that involves different industrial sectors. This investment will enable a regional reduction of around 50,000 tonnes of CO2 emissions,” Söderlund explains.
Vaskiluodon Voima’s emission reduction investments were put into service
New emission reduction investments were introduced at Vaskiluodon Voima in the spring. In addition to the emission reduction investments, the power plant introduced BAT limits and monitoring in accordance with the environmental permit. BAT refers to the Best Available Techniques to minimise the plant’s environmental impact.
During the past year, preparations were made, for example by reducing fuel stocks, for the transfer of the Vaskiluoto power plant to Vaasan Voima Oy, a subsidiary wholly owned by EPV. The new ownership arrangement was agreed with Pohjolan Voima in the spring of 2019 and it will enter into force at the beginning of 2023.
More cost-effective electricity with the Vaskiluoto thermal energy storage facility
This was the first year the Vaskiluoto thermal energy storage (TES) facility, which is managed by Vaasan Voima, was in full operation. The TES facility was used to optimise production and it proved to work as planned. The TES facility enabled the Vaskiluoto power plant to reduce its output when the market price of electricity was at an unprofitable level. The shutdown of the power plant during a heat supply period is also made possible by the TES facility.
“With the TES facility, we were able to produce electricity more cost-effectively for the owners,” says Söderlund.
Tornion Voima continued cooperation with Outokumpu
The close energy cooperation between Tornion Voima and Outokumpu continued in 2021. Cooperation on energy efficiency was extended by making an investment decision to build a heat recovery system at Outokumpu’s cold rolling mill.
“The plan is to build heat recovery steam generators to recover waste heat. This heat will be used to provide regional district heating and heat for the Outokumpu factory site,” Söderlund adds.
A plan for emission-free production was also drawn up for Tornion Voima. The plan looks at what strategic changes should be made to enable the company to move to zero-emission production. The fuel currently used is industrial gas, biomass and peat. The new plan focuses in particular on measures that could help to phase out the use of peat.
In October, the Tornion Voima power plant suffered mechanical damage to a turbine bearing bracket. When the turbine was opened, wear on the casting was also found in the inner journal. Damage repairs began immediately in October and, as a result, the power plant was disconnected from the grid for eight weeks between October and December. The damage to the inner journal was temporarily repaired, and the turbine is scheduled to undergo an overhaul of the bearing in 2023.
Raahen Voima’s power plant had its best ever operating year
Raahen Voima’s power plant had the best operating year in its history and has operated very reliably throughout the year. The power plant also set a record for electricity production in 2021 at just over 800 GWh.
Milled fuel peat was produced in limited production areas
Peat was produced on a smaller scale than in previous years at EPV. The production of milled fuel peat was strategically reduced and maintained only in limited areas. The production of environmental peat was increased in 2021, as demand was high.
As the production of milled fuel peat decreased and the focus areas of the business changed, a new name for EPV Bioturve was considered necessary. A decision was made to change the name to EPV Aluevarannot Oy, with the change taking effect at the beginning of 2022.
Historically high use of forest-based by-products in heat production
In 2021, EPV once again increased the amount of forest-based by-products, such as sawdust, used in heat production in Seinäjoki and Tornio. As a result, over the year, the volume of such by-products used reached its highest level in EPV’s history.
“The sawn timber market boomed in 2021, and forest-based by-products have been widely available,” says Söderlund.
As the sawn timber market has grown, EPV’s subsidiary EPM Metsä Oy’s procurement volumes have been high and its finances have developed well.
