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Oulun Energia Oy is expanding its operations in Laanila

07.04.2022 / Last updated 01.03.2023 13:25

Oulun Energia has signed a cooperation agreement with Junnikkala Oy. The Junnikkala sawmill, to be built in Oulu by the end of 2023, will have a significant impact on Oulun Energia from the perspectives of the development of Laanila area and carbon neutrality.

Oulun Energia’s strategic goal is to develop the Laanila area into an attractive destination for our partners in need of clean and competitive energy. This agreement is a step towards the strategic aim of the big picture, where Oulun Energia serves current and new industry partners diversly.  At the moment, a biopower plant that generates energy, district heating, and process steam in an energy efficient manner and an eco power plant that processes non-recyclable waste into steam and heat form the basis of the operations in Laanila.

This new cooperation agreement guarantees the distribution of heating energy to the Junnikkala sawmill kilns from Oulun Energia’s biopower plant. At the same time, Oulun Energia and Junnikkala have agreed on extensive collaboration in the acquisition, supply, and use of renewable wood energy.

Junnikkala’s sawmill and wood acquisition generate renewable bioenergy beyond their own needs and play a part in enabling Oulun Energia to replace peat with renewable side streams in electricity and heat generation. The sawmill uses nearly 700,000 solid cubic meters of log wood annually, or about 13,000 truckloads. This generates various wood by-products and residues suitable for energy use, which corresponds to approximately 15% of Oulun Energia’s annual fuel use.

Thanks to the cooperation, Oulun Energia is advancing on its path to carbon neutrality as planned, towards renewable energy production. The increase in sawn timber production promotes carbon sequestration, as the carbon in wood binds to buildings for decades. Fuel acquisition of domestic wood also provides work for the region and improves security of supply. “We are very happy to be able to do our part in contributing to the arrival of the Junnikkala sawmill in Oulu,” states Pertti Vanhala, business director at Oulun Energia. “Thanks to this cooperation, we are taking a big leap together towards a sustainable carbon-neutral future.”

Investing in the Oulu sawmill is the largest single undertaking in Junnikkala’s history. “The new sawmill complex will be the most modern in the world and opens up new opportunities to develop the synergy between the energy company and the sawmill company,” says Kalle Junnikkala, CEO of Junnikkala. “At the same time, we are working together to promote measures to combat climate change, bringing work and well-being to the region, and improving security of supply,” agree Vanhala and Junnikkala.


Additional information:          

Oulun Energia / Pertti Vanhala, +358 44 703 3701

Junnikkala Oy / Kalle Junnikkala, +358 50 051 4884