Fortum has delivered its first export batch of bio-oil produced in Finland. The bio-oil was tested last week at E.ON’s Karlshamn power plant in Sweden.
Based on the test combustion performed at the Karlshamn power plant, bio-oil can replace heavy fuel oil also in bigger power plants. E.ON’s Karlshamn power plant is one of the biggest peak-load and reserve power plants in the Nordic countries with a capacity of 1,000 megawatts.
“The test combustion period performed with E.ON was a significant step in the productisation of bio-oil. It’s great to be able to export a new Finnish cleantech product. The possibility to use bio-oil also in bigger power plants will surely increase the demand for the product,” notes Kasperi Karhapää, Fortum’s head of pyrolysis and business development.
E.ON is Fortum’s first bio-oil customer outside Finland. Four tanker truckloads, or 160 tonnes, of bio-oil was supplied for the test combustion. In the test combustion, the bio-oil was incinerated at a record output of 175 megawatts. So far bio-oil has been used in smaller heat plants.
“We have purposefully developed the Karlshamn power plant to decrease environmental impacts. The bio-oil test combustion period provided further assurance that we can use biofuel in place of some of the heavy fuel oil in the future,” says Henrik Svensson, Plant Manager at E.ON Karlshamn.
Energy produced with bio-oil reduces greenhouse gas emissions by more than 90% compared to fossil fuels. Fortum Otso bio-oil is produced from wood-based raw material, like forest residue, wood chips or sawdust. Fortum’s bio-oil plant in Joensuu is the first of its kind in the world on an industrial scale. The plant is unique in that the bio-oil plant is integrated with Fortum’s Joensuu combined heat and power plant.
Fortum Otso bio-oil can be used as a replacement for heavy and light fuel oil at heat plants or in the production of industrial steam. So far Fortum Otso bio-oil has been used in Finland at Savon Voima’s heat plant in Iisalmi and at Fortum’s heat plant in Joensuu. In September bio-oil will be transported also to Fortum’s heat plant in Espoo. In the future, bio-oil can be used also as a raw material for various biochemicals or traffic fuels. The annual production capacity of the Joensuu bio-oil plant is 50,000 tonnes, which is equivalent to the heating needs of more than 10,000 single-family homes.
Fortum’s purpose is to create energy that improves life for present and future generations. Fortum’s expertise is in CO2-free and efficient electricity and heat production. The company also offers energy-related products and expert services to private and industrial customers and energy producers. Fortum’s main areas of operation are the Nordic and the Baltic countries, Russia and Poland. In 2014, the annual sales (excluding the divested electricity distribution business) totalled EUR 4.1 billion, and comparable operating profit was EUR 1.1 billion. The company employs approximately 8,000 people. Fortum’s share is listed on Nasdaq Helsinki.