The Power of Gas Gasetti 1/2020

Gasetti 1/2020

Gasum’s magazine for forerunners in the energy sector

Against climate change with the power of gas Gasetti 1/2020

4 Feature Gas solutions play an important “There isn’t much time. It’s role against climate change the duty of large players in 10 Gallup Building a clean future particular to set an example

12 Point of view and to act responsibly.” Jorma Eloranta: “Sustainability will take us far” EERO HOKKANEN, THE FINNISH MINISTRY OF

15 Smart energy TRANSPORT AND COMMUNICATIONS. 4 Biogas helps to achieve emission reductions of up to 90%

16 3 x industry A responsible company takes environmental issues into account

20 Gas stations Gasum is expanding the filling station network

22 Market analysis 2020 – an extraordinary year

23 Column The transformation of the Nordic gas market

Publisher Editor-in-Chief Address source Gasum Anna-Sofia Malmi Gasum Ltd’s customers and PO Box 21 [email protected] stakeholders register FI-02100 Espoo, Finland Editorial Office Cancellation or order Otavamedia OMA Please contact The energy company Gasum is a Nordic Cover [email protected] gas sector and energy market expert. Pirita Tolvanen Feedback Gasum offers cleaner energy and energy Print run www.bit.ly/gasetti_survey market expert services for industry and 3500 copies 4041 0428 for combined heat and power produc- Printed by Read online: www.gasum.com tion as well as cleaner fuel solutions for PunaMusta Twitter: @GasumGlobal road and maritime transport. LinkedIn: Gasum PHOTO GASUM PHOTO

2 g a s e t t i 1/2020 EDITORIAL

Jukka Metsälä

Gas leads the way to a carbon-neutral future

THE INGREASING ENVIRONMENTAL awareness of consumers is rapidly driving businesses towards low-emission solutions. In the Nordics, achiev- ing the ambitious targets set for a cleaner future requires close cooperation between various actors. While there is no single solution to solve this challenge, gas can enable a rapid and cost-effective change already today. We need every possible solution for reducing the huge global demand for oil and lately the role of gas has risen as an effective way to replace petrole- um-based products. This will help us to quickly and cost-effectively reduce carbon dioxide and particulate emissions. The gas ecosystem that has been built over the years provides a foundation for the widespread use of gas and is a solid component of future integrated energy systems. Moreover, the infrastructure can be fully utilized with renewable gases. Gas has great growth potential especially in industrial as well as road and maritime transport sectors in the Nordics. Transport plays a key role in almost all goods and service offerings. In the Nordics, the annual use of energy in the maritime and road transport sector almost equals the entire manufacturing sector’s annual energy consumption. EU and national climate targets are strongly committed to a rapid decrease in transport emissions. As a result, establishing a low-emission transport system is essential in the Nordics, where the distances are long. Biogas is a concrete example of circular economy. At best, biogas production connects various organic waste streams, provides us with a renewable fuel that can enable emission reductions of over 100% and supplies organic nutrients for industry and agriculture. And you can always blend biogas with natural gas, making it possible for gas users to gradually move towards a fully renewable future. As the network of gas filling stations and gas bunkering options ex- pands, gas-powered transport will increasingly connect more people and business value chains across countries. Gas is a cost-effective way to meet the climate targets – already today. Awareness of gas solutions and the opportunities for cleaner services and products must be increased. We need to step up the pace of change for a cleaner tomorrow. Read more about how gas solutions can build a bridge towards a carbon-neutral future in this issue of our magazine.

The author is responsible for Gasum’s transport business.

1/2020 g a s e t t i 3 FEATURE

Responsibly towards zero emissions

TEXT Samuli Kotilainen ILLUSTRATION Pirita Tolvanen

Action against climate change cannot wait any longer – decisions and concrete measures are needed right now. Gas solutions play an important role in this transition. Biogas can help to achieve major emission reductions, and new types of innovations are emerging in fields such as the circular economy.

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1/2020 g a s e t t i 5 FEATURE

ow amid the COVID-19 pan- GLOBAL est-carbon fossil fuel. Its carbon dioxide emissions are demic, it is easy to forget that almost 40% lower than those from coal and around WARMING we are also in the middle of an 20% lower than those from liquid fossil fuels,” Saariv- HAS EXCEEDED even bigger and more serious uori explains. crisis. Global warming is per- 1 °C. With gas, emissions can also be reduced quickly be- sisting towards catastrophic DISTANCE TO cause the solutions are available right away. consequences, but measures to “Gasum has done a great deal of gas infrastructure THE PARIS cut emissions have proved insufficient. One of the are- development in the Nordic countries,” she points out. AGREEMENT’S as where the problem can be seen is transport. “The availability of liquefied natural gas (LNG) has im- TARGET: “Progress in emission reductions has been slow. The proved enormously in recent years. Access to gas is no measures currently in use are not enough to achieve 0.4– longer dependent on the gas pipeline network.” the targets set for transport emission cuts,” says Senior °C. Specialist Eero Hokkanen at the Finnish Ministry of 0.5 LNG takes ships towards Transport and Communications. an emission-free future Hokkanen points out that the International Mari- The use of gas solutions is growing fast in the Nordic time Organization (IMO) estimates that global emis- countries. One user is Samskip, a logistics company sions from international shipping could grow 50– which mainly provides transport within Europe. Sam- 250% from the 2012 level by 2050 if efficient action is skip CEO Kari-Pekka Laaksonen says that, in a busi- not taken to reduce emissions. ness acquisition three years ago, Samskip received two This spring, the Swedish Climate Policy Council is- LNG vessels that operate between Norway and Conti- NORWAY sued a warning along the same lines concerning Swe- nental Europe. The ships are fuelled with LNG at IS AIMING den’s climate action. According to the Council, current Gasum’s terminal close to Stavanger, on the south-west CARBON measures will not take Sweden anywhere near the cli- FOR part of Norway. mate targets set. NEUTRALITY “LNG is still a fossil fuel, but it helps us to achieve IN 2030, considerable emission cuts. We see it as a step towards FINLAND an even more carbon-neutral solution,” Laaksonen says. IN 2035 Another reason for using LNG technology is to re- AND duce other types of shipping emissions. This is particu- “The measures currently SWEDEN larly important in the sensitive marine environment of IN 2045. the Baltic Sea. Eero Hokkanen at the Ministry of in use are not enough to Transport and Communications says that particulate and black carbon emissions pose a particular challenge achieve the targets set for in the Arctic region. In addition, the entire Baltic Sea is transport emission cuts.” designated as a Sulphur Emission Control Area (SE- CA) and is also due to become a Nitrogen Emission Control Area (NECA). Gas is an efficient way to reduce such emissions. Particulate and sulfur dioxide emissions can be almost Gas, especially renewable biogas, is an efficient and ONE entirely eliminated and nitrogen oxide emissions re- immediately available solution for cutting emissions. BIOGAS duced by up to 85%. The Nordic countries are already using many interest- TRUCK “Technically, we’ve been very pleased with the LNG ing gas solutions that reduce emissions from industry HELPS solution. Both of the ships were dry-docked for the first as well as from road and maritime transport. TO CUT time this year, and no surprises were detected. Envi- ronmentally friendly technology and fuels are slightly EMISSIONS Gas helps to cut emissions more expensive at the investment phase, but we see AS MUCH AS in practically all contexts this as a path we have to take. Our customers also ex- “Biogas will help to achieve emission reductions of up 40–50 pect it from us,” says Laaksonen. to 90%,” says Gasum Sustainability Manager Elina BIOGAS Saarivuori. Gas is an important solution CARS. For several years, Gasum has been investing in de- in heavy-duty road transport veloping the production and market of renewable bio- Gas is a key solution for cutting emissions from heavy gas and its liquefied form, LBG. Emissions are cut even road transport, a sector with limited options for emis- if the renewable option cannot be utilized immediately. sion mitigation. Samskip is involved in this transition “Although not renewable, natural gas is still the low- process, too.

6 g a s e t t i 1/2020 FEATURE

“In road transport we’re about to switch to LNG. We already have partners who use LNG, and this year Working at Gasum we’re starting to introduce it in our own fleet, says Laaksonen. Numerous businesses in the Nordics have reached similar decisions. Bring and Vähälä Logistics are two of the companies that have started using LNG vehicles, and in the food sector Lidl and Valio have started to use liquefied biogas (LBG). Finland’s leading postal and logistics service company Posti and the logistics company PostNord use gas to fuel their delivery vehicles. Solutions like these have great potential in action against climate change. The burden on the climate from one heavy-duty vehicle typically equals the emissions from 40–50 passenger cars. Elina Saarivuori

AS THE SUSTAINABILITY MANAGER it is my task to pro- mote Gasum’s sustainability work. I make sure that Projects implementing Gasum has a responsibility programme based on essen- principles of a new kind tial issues, and that its guidelines are implemented in the business. I am involved in aspects ranging from climate of circular economy are impact assessments and facility audits to communica- particularly interesting. tions and customer work.

I AM PROUD that at Gasum we are able to offer our customers quick and sustainable solutions for carbon foot- Demand for heavy-duty gas solutions is going to in- print reductions thanks to our low-carbon products. crease rapidly in the coming years, predicts Jukka There is enormous potential in the gas sector to contrib- Metsälä, Vice President, Traffic, at Gasum. This is -be ute to efforts to curb climate change. cause of the surging demand for low-emission logistics and the new mobility-related regulations that set even I HAVE WORKED for Gasum for three years. It has been more ambitious requirements for emission reductions. great to find that Gasum offers genuine and green solu- “It’s essential to reduce emissions from heavy road tions for a better tomorrow. I enjoy working with every- transport as heavy-duty vehicles account for more than one at Gasum and no two days are the same in my work. half of Nordic energy consumption in road transport,” I also get to tap into my extensive previous work experi- Metsälä says. ence from industry and research. Our company is under- going strong growth, and this provides excellent opportu- Gas provides industry with opportunities nities and challenges for my work. for a new kind of circular economy Reductions in industrial emissions have, in many cas- DEMAND FOR GAS is surging in segments such as trans- es, not matched those of sectors like transport or ener- port. Gasum is responding to this demand by investing in gy production. Gas offers interesting opportunities to new infrastructure and new biogas plants. Promoting the industry, too. production of renewable gases and strengthening their The steel company SSAB has used LNG to cut emis- position are key to the achievement of climate targets. sions from its mill in Raahe, Finland by 10%. At the Natural gas can also play an important role in transport, same time, the company was able to modify the mill in in industrial use and when phasing out coal in energy preparation for future solutions that aim to reduce production. emissions to a near-zero level. SSAB also uses LNG and LBG to fuel raw material shipments to the mill, NAME Elina Saarivuori enabling significant reductions in shipping emissions. POSITION Sustainability Manager, Gasum The company aims to bring fully fossil-free steel to the EDUCATION MSc (Environmental Chemistry) market in 2026. HOBBIES Running, gardening and sailing with family Projects implementing principles of a new kind of FAMILY Husband and children aged 16, 14 and 10 circular economy are particularly interesting. A good

1/2020 g a s e t t i 7 FEATURE

example is the Stora Enso paper mill in Nymölla, Swe- den. The company has entered into a partnership with Gas is an everyday part of an Gasum where organic material is collected from the innovative circular economy mill’s wastewater and turned into liquefied biogas (LBG). “The amount of biogas produced equals the annual A CIRCULAR ECONOMY featuring a sustainable cycle of raw consumption of up to 150 heavy trucks. Interest in our materials is one of the most important global megatrends cooperation project also has been high among other of the years ahead. It is also an excellent way of reducing cli- companies manufacturing pulp and paper,” says Erik mate emissions. Many gas solutions are based on circular Woode, Senior Manager for Business Development at economy models that create a win-win situation – with the Gasum. environment reaping many of the benefits. An excellent example of the advantages of the model How can businesses reach can be found in Turku, a Finnish city on the Baltic Sea. their climate targets? Wastewater from around 300,000 residents of the city and “Responsibility and sustainability have become core val- the neighboring area is purified at a single central plant. The ues that are integrated widely into business operations. energy content and nutrients of the sewage sludge can now Enterprises have understood the high expectations for be recycled. sustainability by the stakeholders and that “doing good” Sewage sludge containing solids is collected from the is a competitive advantage”, says Saarivuori. wastewater. The sludge is transported to the Gasum plant However, concrete measures must be stepped up where it is used as a feedstock for renewable biogas. There greatly in all sectors. Hokkanen gives maritime trans- are also solids remaining once the biogas process is com- port as an example. pleted. Compost created at the plant is used for Turku road- “We must accelerate the switch to alternative pro- side landscaping, among other things. pulsion systems in maritime transport. Two years ago, Another product that the plant can separate from the only 0.3% of the operational global fleet was using al- sludge is aqueous ammonia solution (ammonia water). It ternative fuels. In the same year, just 6.1% of vessels in can be used for environmentally beneficial purposes such the order book were to be powered by an alternative as water purification in the paper industry and for removal fuel.” of nitrogen oxides from flue gases at industrial production facilities. This is a win-win situation for all. The biogas produced at the plant is liquefied, and turned into LBG fuel for heavy-duty transport. The output of the Turku plant can meet the an- “Enterprises have understood nual fuel needs of 150 trucks, which corresponds to the an- that societies where nual fuel consumption of up to 75,000 cars. The ammonia water produced at the plant accounts for wellbeing is high expect around 10% of Finland’s total annual demand for ammonia business to be sustainable.” water. On top of all that, the City of Turku gains a significant cost benefit from the partnership and does not need to make other arrangements for treatment of sewage sludge. Circular economy solutions like this are becoming increasingly common. In Finland, Gasum produces biogas Hokkanen emphasizes that a switch to renewable from feedstocks including side streams of the food compa- fuels must be made as soon as possible in road and ny Valio – and Valio uses that biogas in its own logistics. maritime transport alike. The technology choices made There are similar partnerships with companies such as IKEA today must enable the use of renewable biofuels. and Lidl. In Sweden, Gasum produces gas from feedstocks “There isn’t much time to make these decisions. In including the wastewater of Stora Enso’s paper mill in my opinion, it’s the duty of large players in particular to Nymölla. set an example and to act responsibly.” In future Gasum will build a new biogas plant in Götene, Saarivuori encourages enterprises to set clear tar- Sweden. Due for completion by the end of 2022, the plant is gets for emission reductions and adopt indicators to expected to produce an annual total of 120 GWh of lique- monitor progress towards the targets. It is important fied biogas, mainly from manure. for all actors to take part in the transition towards a low-carbon society, and gas is playing a significant role in this transition process.

8 g a s e t t i 1/2020 FEATURE

Availability of gas improving by leaps and bounds

THE BENEFITS OF GAS solutions have long been known In road transport, Gasum’s distribution network was but the brake on their adoption has been the availability expanded by 48 gas filling stations in Sweden and Nor- of gas. Recent years have seen major leaps forward in way. Gasum’s extensive filling station network in the Nor- this respect. dics consists of around 100 stations that serve cars, buses, A good example of the rapid rate of progress is the trucks and other vehicles with gas. number of LNG and LBG filling stations for heavy-duty The acquisition also improved the refueling network vehicles in Sweden. Two years ago, there were only six for maritime transport customers. Gasum gained the ow- stations, while today Sweden already has almost 30. New nership of two LNG terminals in Sweden and in Norway ones are being constructed all the time. and two LNG bunkering vessels, Seagas and Kairos. In 2020, Gasum completed an acquisition that will Gasum now has five bunkering vessels that can be us- bring significant new improvements in Nordic gas distri- ed to deliver fuel at sea for practically all types of LNG- bution. It acquired Linde AG’s LNG and Biogas business powered vessels. For example, Gasum’s Kairos vessel has in Sweden and Norway and Nauticor’s Marine Bunkering already bunkered LNG for the world’s largest semi-sub- business. In the transaction, a significant gas distribution mersible crane vessel, Heerema Sleipnir, in Åmøyfjorden, network and other assets were transferred to Gasum. Norway.

GASUM’S new acquisition brings new improvements in Nordic gas distribution. It acquired Linde AG’s LNG and Biogas business in Sweden and Norway and Nauticor’s Marine Bunkering business in Germany.

1/2020 g a s e t t i 9 GALLUP

Ambitious European Green Deal poised for concrete action

TEXT Vesa Vainio

The Nordic countries hold many trump cards for the European climate targets table. Examples of their vanguard roles include renewable fuels and energy efficiency.

urope intends to be carbon neutral in er view on the matter. Gas should figure more prominently in 2050 – the first continent in the the fuel mix. world. This means societies generat- “I believe in gas. Emissions from liquefied natural gas are ing no more atmospheric carbon only a fifth of those from petrol. With biogas, the emission emissions than they are able to re- reduction is 90%.” move from the atmosphere. Virkkunen emphasizes a comprehensive development ap- E The roadmap for the challenging proach to decision-making; emission levels are affected not 30-year journey of the European Un- only by the fuel choice but also by the overall efficiency of ion towards sustainability is provided by the European Green logistics, the condition of the infrastructure and the vehicle Deal. Having had a ringside view of the EU’s development for technology used. She calls for a diverse mix of motor energy more than two decades, the CEO of FinMobility Pasi Moisio for the transport of people and goods on land and at sea. is pensive about the future. “This is a complex issue and it is difficult to discern a clear Businesses and municipalities picture. The legislative focus is now on the European Green playing an active role Deal, and the practical impacts remain to be seen.” The Paris Agreement on climate change has been signed by Moisio believes that the revision of the Energy Taxation 195 states, including the EU Member States. As recommend- Directive will be part of the Green Deal. He sees the aim be- ed by the Intergovernmental Panel on Climate Change ing to harmonize fuel price levels within the EU. The guiding (IPCC), the goal is to limit the increase in global average tem- factor is to seek an exit from fossil fuels towards clean solu- peratures to 1.5 °C. The world is currently heading for a glob- tions. al temperature rise of 4 °C, so there is no time to waste. The annual report published by the UN Environment Pro- Modern and sustainable approach gramme (UNEP) makes stark reading. Its calculations show A quarter of the EU’s greenhouse gas emissions come from that global emissions will need to be cut by more than 7% per transport. A second-term member of the European Parlia- year for warming to be limited to 1.5 °C. There is an immedi- ment’s Committee on Transport and Tourism, Finnish MEP ate need for a system-level transformation of societal and Henna Virkkunen regards the Nordic starting points as good. economic structures. “Digitalization is one of the main themes and has a promi- Mariko Landström, Specialist in Climate Solutions at the nent role in the reform work. Sweden and Finland are lead- Finnish Innovation Fund Sitra, says the Nordic countries can ing the way in the use of renewable fuels. The Nordic coun- lead the way for effective climate actions. A Sitra study shows tries make fuels from waste materials and forest residues.” that Nordic municipalities could cut their climate emissions In Virkkunen’s view, the Nordics are rather alone when it by an estimated 26 million tonnes of carbon dioxide equiva- comes to renewable fuels, receiving little resonance from the lent per year by implementing 14 Nordic climate solutions. rest of Europe. She is not keen on the electric-only option Diverse energy production, renewable energy sources, en- commonly put forward in Europe as a solution for the Clean ergy efficiency and smart technology solutions are examples Vehicles Directive. of the trump cards held by the Nordics. The road to carbon “We should look more broadly at the entire lifecycle of fu- neutrality requires teamplay. For many, the first interim mile- els,” she says and hopes to see decision-makers adopt a broad- stone is set at 2030.

10 g a s e t t i 1/2020 GALLUP

Concrete action and long-term commitment A determined approach is needed for a clean future to become a reality. This is a common concern for actors from various sectors.

KARI-PEKKA LAAKSONEN KLAS NILSSON CHIEF EXECUTIVE OFFICER DIRECTOR, GROUP SAMSKIP COMMUNICATIONS We make decisions that are sus- BOLIDEN tainable today as well as tomor- Metals are important in the pro- row. We share a common cause duction of battery technology, with our customers. All of them, from major electrification and fossil-free energy. Boliden is global players to smaller ones, put just the right a leading producer of base metals in Europe pressure on us in this respect. and the biggest mining company in Finland. Samskip is a European multimodal transport- Emissions from our operations are low in inter- er. We provide both land and waterborne trans- national comparison, and we are working con- port and operate on roads and railways, at sea tinuously to cut our emissions. and on rivers. We take the entire transport chain We are investing in the electrification of our into account when examining emissions. We use transports. For example, we are building elec- railways and river barges whenever we can. tric trolley lines for our Kevitsa mine in North- LNG is a great opportunity as a maritime and ern Finland, which is unique in the Arctic cli- road fuel for us and our subcontractors. We are mate. In the future we will increase the pro- pleased with the availability of LNG and follow duction of fossil-free energy in Finland. Our the development of the biogas market with par- aim is to reduce emissions by 40% by 2030. ticular interest.

JOHAN SIRÉN Net annual emission reductions in Nordic cities and communities BRAND MANAGER PIZZA HUT FINLAND

0.4 Electric ferries As the world’s number one pizza chain, we are taking action Cycling in 0.1 Biogas from food waste urban areas 0.1 Reduction of for the environment, locally as retail food waste Electric vehicles well as globally. We prepare no more food than 0.8 is needed, and we monitor our use of ingredi- Public 2.1 transport in ents down to the gram. Any waste that is still urban areas 2.2 generated regardless of our efforts is recycled by us. Recovering food waste and processing it -26 12.5 Wind Ground MtCO2e into a low-emission fuel is part of the recycling source 2.7 heat pumps process. We use biogas-fuelled cars for home deliv- 4.7 ery of our pizzas. Our first major climate step

District was the introduction of the MSC certificate for heating solutions prawns and tuna. Next, we will publish a vegan menu to complement our current sustainable SOURCE: SITRA, NORDIC COUNCIL OF MINISTERS 2019 offering.

1/2020 g a s e t t i 11 POINT OF VIEW

12 g a s e t t i 1/2020 “Bold decisions are needed now”

TEXT Vesa Vainio PHOTOS Roope Permanto

Jorma Eloranta’s words reflect his decades of experience in sustainability. The Grand Old Man of Finnish business life believes that bold investments in sustainable technologies decide who will be successful in the future.

rack record of 42 years chairing tainable development principles. The answers to today’s boards of directors, 28 years as wicked problems will be found in technology, he says. president and CEO. Jorma Elo “I’m a true believer in innovation and technology. ranta’s experience in manage We have to be daring and bold. I see technological ment and governance is excep solutions as our key opportunity.” tionally extensive. In his view, an enterprise must be profitable to be Eloranta retired from his po able to invest in new technology. When he was chairing sition as President and CEO of the Gasum Supervisory Board in 2008–2014, the com Metso Corporation in 2011 but continues in roles in pany started to develop its liquefied natural gas (LNG) cluding Chair of the Board of Directors of Stora Enso. business. “Although the business was small in scale to begin Profitability also means sustainability with, it was an opportunity not to be missed. Today’s In his various roles, Jorma Eloranta has seen how sus positive development proves this.” tainability has become an increasingly important part of business. He points out that sustainability and prof Sustainability will take us far itability go hand in hand in the same direction. According to Jorma Eloranta, sustainability calls for “In the long run, only profitable enterprises can long-term strategic choices. In due course, these choic operate sustainably, and only sustainable enterprises es will also generate results. He was chair of the Board can operate profitably. Sustainability and profitability of Directors of Neste in 2012–2018, a period when the support each other from perspectives including those Board contributed towards the continuous improve of investors and risk management,” he says. ment of the renewable diesel business model. The He believes climate and environmental factors will product’s consumption gained momentum thanks to have a direct impact on the operating conditions of regulations introduced in various countries and to businesses in the future. Operations have to be ecologi choices made by consumers. cally sustainable. The business models of the best com A company using antiquated technology takes a big panies deliver financial targets at the same time as sus risk, he thinks.

1/2020 g a s e t t i 13 POINT OF VIEW

“Even if their business keeps on running, their product and service quality will deteriorate. Soon their ELORANTA believes that products will no longer sell, and their value added will renewal is needed not only in decline.” enterprises but also in the Consumers comment on quality issues or environ structures of the societies. mental problems associated with a company in con texts such as social media. When business is sustainable and profitable, it is beneficial for humanity, Eloranta believes. Sustainable development offers better opportunities for success than acting against it or other megatrends.

“Biogas will be a big positive deal” Society is seeking to regulate business and industry to wards greater sustainability. Regulation has a specific impact on business activities, particularly in the energy sector. Jorma Eloranta has gained a broad view and under standing of the energy market during his long career. “Energy is an extremely political and regulated business in the European Union as well as nationally. Price relations decide which energy forms succeed.” At Stora Enso, the bioeconomy is a key part of the company’s future. “Stora Enso’s product development starts from the forest – from renewable fossil-free raw material. Indus trial and municipal waste streams provide the bioeco nomy with new opportunities.” Eloranta predicts that biogas may turn out to be a big positive for Gasum. The existing gas pipeline net the Board is to make decisions such as those securing work can be used to distribute biogas. Natural gas is a liquidity, but it must not interfere with operational good alternative to coal, a fuel that Finland is making management. determined efforts to phase out. Adapt, renew, transform Liquidity must be secured Exceptional conditions are always a test for the compa in times of crisis too ny strategy. This year, many companies have faced a new situation “You must consider whether your mission, vision, with the spread of the coronavirus pandemic. The sus ethicality and sustainability will pass the test. These tainability and values of enterprises have been weighed aspects must not be forgotten, no matter how hard the in a difficult situation. times may be.” During the state of emergency, Jorma Eloranta has uti Eloranta also advocates a humane and empathic lized lessons learned in contexts such as his military approach for companies to their own employees. training. “Enterprises must renew themselves, adapt and act “You must assess the situation first and then postu sustainably. Making profit does alone not suffice.” late a variety of scenarios. Typically, you outline the best, good and worst scenario and assess how you will act in response to each.” Actions must be prioritized, and the focus placed on NAME Jorma Eloranta the essential. ROLE Professional board member “The first thing you must secure is the company’s EDUCATION Master of Science in Technology, Industrial liquidity. After that, you’ll be able to use your own re Management, Helsinki University of Technology sources to make sensible decisions.” BORN 1951, Helsinki, Finland In management and leadership, clarity is key. The HOBBIES Physical exercise, hunting, starting to explore roles of the board of directors, CEO and business units life as a retiree must be unambiguous. Eloranta says that the task of

14 g a s e t t i 1/2020 SMART ENERGY

Biogas – a model example of the circular economy

The circular economy offers a path for sustainable growth as consumption and production requirements grow. The biogas production process is a good example of this.

THE CIRCULAR ECONOMY will play a more with less. Waste from one product Nutrient residues created as a significant role in meeting the global cli- is the building material for another by-product can be returned to the mate targets. The European Commission product. food chain as fertilizers or refined for put forward its first Circular Economy Biogas production is a good exam- industrial purposes to replace mineral Package in 2015. The Waste Framework ple. Biogas is a low-emission fuel pro- and fossil nutrients and fertilizers. Directive states that 65% of municipal duced from agricultural, industrial and Renewable biogas can be used as a fu- waste must be prepared for re-use and household waste. Biodegradable mate- el for cars, buses, heavy-duty vehicles recycling by 2035. rial can be recovered for energy produc- and maritime transport. Biogas use The circular economy is about tion, which reduces energy loss and can help to reduce greenhouse gas more sustainable utilization of natural eliminates the fine particulate emissions emissions by up to 90% compared resources, recyclability and waste that would have resulted from waste in- with fossil fuels. reduction. Its basic principle is to do cineration.

2 3 Biogasplant

Job creation and Improved Conserve value for municipal 1 soil natural Responsible economy conditions resources: Recycled Recycled management and and soil reduced nutrients recycling of based fertilizers dependence society’s waste Biowaste Sewage Manure carbon on mining and sidestreams sludge capture nutrients from the ground Renewable energy: reduced dependence Agriculture on fossil energy Industry Biogas sources 4

Climate change mitigation: up to Grocery stores 90% less CO2 emissions Improved local air quality: no particulate 5 or CO2 emissions Consumers Stages in biogas production: 1. Biowaste is crushed into 2. Microbes need warm condi- 4. In the final stage, the gas is 5. After this, the biogas is smaller pieces and slurrified tions, so the biowaste is heat- purified (upgraded) by remov- ready for use by enterprises to prepare it for the anaerobic ed to around 37 °C. ing impurities and carbon di- and consumers, for example digestion process. Slurrifying 3. The actual biogas produc- oxide. in a liquefied form (LBG) or means adding liquid to the tion takes place through an- following injection into the biowaste to make it easier to aerobic digestion in large gas pipeline network. process. tanks for about three weeks.

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i t t e s a g many possibilities

1/2020 A responsiblecompany takes environmental issuesinto account. Three companies tell of theirjourney towards TEXT MattiKoskinen a cleaner future withthepowera cleanerfuture of gas. Gas has PHOTOS Sabrina Bqain,PelleT. Nilsson&Forchem

SHUTTERSTOCK SHUTTERSTOCK core of sustainable sourcing core ofsustainable 1 when electricity isavailable.when electricity in thegridandcorrespondinglymore sume lessifthereisnotenoughelectricity the availability ofelectricity. We willcon that ourrealestate willbeabletoadapt means centre.This and onedistribution plant that willcovermorethan130stores our emissions. onhowtocut vided uswithsuggestions inthisandpro partner been animportant nerated zeroemissions in2019. Gasumhas wind power. regardselectricity, As wege –Nordic electricity sourcing renewable for aroundathirdoftheseemissions. vehicle fuel.In 2018, accounted electricity and consumables,waste from transport, meansalloperational2025. This emissions goals istobecarbonneutral bytheendof HOW? WHAT? Clean electricity at the at electricity the Clean Thanks to our partnership with Gasum, withGasum, toourpartnership Thanks power Lidl Finlandisbuildingavirtual From Gasum,LidlFinlandare At Lidl Finland, one of our main At LidlFinland,oneofourmain is highest. ofthechange where elsetheimpact meansreducingemissionssome This beoffset. andtheseemissionsmust efforts, sions willbeunavoidable despiteourbest forcarbonoffsetting. Someemis services make moreofthem. we willcertainly our first geothermal heating and system, usandFingrid. plant between operatorpower as themarket ofthevirtual from fossilfuelsinthegrid.Gasumwillact the needforregulating powergenerated fuel ourbiogastruck. isalsousedto biogas madefromthewaste ties istaken toGasum’s biogasplants,and ural gas(LNG).Food fromourfacili waste natalso useavehiclerunningonliquefied we nowhave abiogas NEXT? WHY? With Gasum, we have also discussed With Gasum,wehave alsodiscussed

This flexibility helps us to reduce flexibility helpsustoreduce This

Last year saw the completion of yearsaw of Last thecompletion 3 XINDUSTRY - powered truck and powered truckand • • • • LIDL FINLAND

Environmental Manager answered by Energyand The questionswere in2019. in Järvenpää distribution centre opened Finland. Carbon-neutral distribution centres in Over 190stores andthree Group. retail chain,theSchwarz Part of aleadingEuropean chain. third-biggest grocery 2002 andcurrentlyFinland’s Operating inFinlandsince Simo Siitonen. 1/2020

i t t e s a g

17 “Shipping must bear its responsibility by phasing out heavy fuel oils and marine diesel.”

2 Gas will be part of future port

WHAT? OxGas are building a new gas termi More environmentally friendly energy al nal at the Port of Oxelösund, Sweden. In the ternatives are a great advantage for the port. OXGAS AB • Subsidiary of the Port of initial phase, the terminal will serve the local It may help maritime transport services Oxelösund that is plan- Special Steels Mill of SSAB by providing it compete with rail or road transport in conti ning and constructing with an alternative source of energy. nental European transport. The plan is to an LNG terminal and start the bunkering of liquefied gas in 2022 will be responsible for its practical operations. HOW? The first phase will include the com or early 2023. • In the initial phase, it pletion of a smaller 500 cbm storage tank. will deliver gas to the Gasum will provide us with a turnkey pack NEXT? Liquefied natural gas (LNG) will play Oxelösund Special age including the gas container as well as a major role as a maritime transport fuel Steels Mill of SSAB. continuous gas deliveries. In the second over the transition period, enabling an easy • The port is located half- phase, we will construct a 30,000 cbm ener further switch to biogas. way between Stock- holm and Norrköping gy terminal that could also deliver natural LNG would currently appear to be the and handles an annual gas and biogas to SSAB’s Borlänge Mill and most popular fuel for new vessels. We believe total of around 4.5–6 to other customers. it is the right choice for the future. million tonnes of cargo. Shipping must bear its responsibility by • The questions were an- WHY? At the Port of Oxelösund, we are con phasing out heavy fuel oils and marine die swered by Douglas Heilborn, CEO, Port of tinuously expanding our service palette. We sel. There has already been a shift in the Bal Oxelösund and OxGas. want to offer all the port services that cus tic Sea towards less harmful fuels, but there tomers may need. Gas is part of this service, is still plenty of room for improvement, par which is why we plan to expand into the ticularly regarding emissions of fine particu bunkering of liquefied gas. late matter and nitrogen oxides.

18 g a s e t t i 1/2020 3 X INDUSTRY

3 Biorefinery that focuses on renewable energy

WHAT? Forchem is an oil refiner but instead of crude fossil oil we use crude tall oil (CTO), which is a co-product of the kraft pulp industry. Forchem have been refining CTO into a variety of products for more than 20 years, almost exclu sively for export. Oil distillation requires a lot of heat. Previous ly at Forchem we generated it using a fuel which was created as a process side stream. Now we use natural gas. One of the decisive factors was the future option of switching to biogas, which would allow us to change to renewable fuels.

HOW? Gas is delivered to Forchem by a road tanker and it is regasified on site at their facility. Forchem’s annual energy consumption is around 150 gigawatt hours, and the road tanker visits us almost daily. The system has been run ning for around eight months and, now that we have learned the ins and outs of it, using gas is practical, convenient and almost effortless.

WHY? Compared with natural gas, biogas is a re newable fuel, and we would like to go back to us ing renewable energy. The biggest challenge at the moment is the FORCHEM OYJ • A chemical industry company availability of biogas. established in 2000 in Rauma, Finland, that produces crude NEXT? Our aim for the future is to further develop tall oil (CTO) and products new higher value-added products from crude tall refined from CTO. oil (CTO), which is a great renewable feedstock. • Forchem was ranked in the Global Top 30 cleantech list by For example, our customer Hankkija has de the Global Cleantech Cluster veloped an animal feed that replaces antibiotics. Association (GCCA) in 2012 Overuse of antibiotics in animal production is a • The questions were answered major cause of resistance to antibiotics, which is a by Risto Näsi, CEO, Forchem. big problem around the world. The CTO-based feed material we produce for Hankkija yields the same result with no antibiotics.

1/2020 g a s e t t i 19 GAS STATIONS

Filling station network for the heavy-duty vehicles is expanding across the Nordics

GASUM OPERATES 26 of the total of 35 gas filling stations for the Heavy-duty Vehicle (HDV) segment across the Nordics. During summer new stations opened in Ljungby, Helsingborg and Gothenburg in Sweden, and Lieto in Finland. Gas as a solution to decrease road transport emissions is becoming a more and more popular fuel option for HDVs in the Nordic countries. For example, already more than 1,000 LNG trucks have been approved for subsidies by the Klimatklivet initiative and Drive LBG climate investment programmes in Sweden. The role of the expanding gas filling station network is crucial in providing these and future HDVs with a low-emission and cost-effective fuel. Strengthening the network of stations is key to lower- ing emissions in the road transport sector. Gasum’s extensive filling station network in the Nordics consists of around 100 stations that serve cars, buses, trucks and other vehicles with gas.

In addition to the stations marked on this map, several filling station projects are planned to be launched in 2020.

20 g a s e t t i 1/2020 GAS STATIONS

The growth potential for the expansion of Nordic gas ecosystem is enormous Total market size in the Nordics: ~18 0 TWh/a ~750 TWh/a ~45 TWh/a

Industry ~390 TWh/a

Road transport ~140 TWh/a ~190 TWh/a ~86 TWh/a Maritime Oulu ~16 0 TWh/a

Umeå

Östersund Vaasa Kuopio Seinäjoki Joensuu ~67 TWh/a Jyväskylä ~57 TWh/a

Pori Tampere Lappeenranta Lahti

Lieto Turku Vantaa Helsinki Oslo Västerås Arlanda Örebro Karlstad Haninge Mariestad Norrköping

Jönköping Gothenburg Existing LNG filling station

Ljungby Upcoming LNG Kalmar filling station

Planned LNG Helsingborg Kristianstad filling station Malmö

1/2020 g a s e t t i 21 MARKET ANALYSIS

TEXT Jouni Liimatta

Unique opportunity

his year has been LNG-powered vessels from ‘dirty’ gas inventories are also at record extraordinary in fuel oil pushed by the International high levels. These factors should many ways. COV- Maritime Organization’s (IMO) keep the natural gas prices at rela- ID-19 outbreak ex- emission regulations, along with tively low levels in Europe for the panded into a glob- local environment regulations and coming winter. al pandemic situa- improved LNG truck economics The Nordic power market has tion, which forced over diesel are expected to expedite also been trading at record low price almost every country around the globe LNG growth as a transport fuel. levels that we have rarely seen in the to announce a lockdown of communi- The overall growth in fossil fuels ties or even closure of national borders. was always going to come to an The fall in industrial demand for many end, but the COVID-19 crisis may Market environment raw materials, components and end have accelerated this by more than with low natural gas products resulted in severe problems a decade. Although liquefied natu- for various industries. Different energy ral gas (LNG) is also a fossil fuel, it prices and higher product prices dropped to levels that will offer a bridge towards a future emission prices can we never even thought possible. with carbon-neutral energy solu- How should we view the situation? tions. Liquefied biogas (LBG) is intensify the move It was a devastating wake-up call for one of those solutions that will toward a low-carbon the whole world. The spread of a virus come more readily available to our society. in China and a local lockdown of a pro- customers as we expand our production facility can disrupt the supply duction capacity to match the in- chain and, in the worst case, stop the creasing demand. past. I think these extraordinary production of another product on the Today’s market environment events will support the electrifica- other side of the world. with record low natural gas prices tion of the economy even further. Consequently, companies have now coupled with higher emission allow- Renewable energy production, such started to think about the importance ance prices can actually intensify the as wind and solar, will continue to of the diversification of production move toward a low-carbon society. gain ground in the energy mix. sites and the supplier network of raw With the current price levels, even Gasum is part of the solution materials and components. Could this the most efficient coal-fired power providing baseload energy during change impact also the energy mar- plants are not economical compared the less windy and less sunny days. kets? Are we now going to see an accel- to gas-fired power plants. We have a special opportunity in eration towards environmentally The supply of LNG has in- our hands to make the next leap to- friendly energy sources? creased significantly during the wards environmentally friendly en- International trade flows will be im- past few years especially from the ergy solutions. portant for years to come. The mari- U.S. Gulf Coast, and supply will time sector is going to play a crucial continue to outpace demand also part also in the future. A shift to during the coming years. European The writer is Head of Trading at Gasum.

22 g a s e t t i 1/2020 COLUMN

Juha Ala-Huikku

Leading the way for a decarbonized future

he need to mitigate climate change and limit the effects of global warming require significant and rapid emission reductions in all aspects of life. We at Gasum can be proud of the speedy development we have generated in the Nordic gas sector over the recent years. By actively helping our customers decrease their emissions – be it by switching from coal to natural gas or by producing biogas from their waste – we are playing our part in helping societies move towards a carbon-neutral future. The move towards cleaner fuels has not always been easy or fast enough, but thankfully we are moving in the right di- If we want rection. Thanks to tireless work throughout the Nordics, the to lead the role of gas in the heavy-duty transport and marine segments transformation is constantly increasing. The symbiotic relationship between biogas and the circular economy, which has been at the core also in the future, of our thinking and activities for years, is gradually being we simply cannot brought to the fore by the rest of Europe. The fact that we are actively producing and using liquefied biogas seems to come stay put. as a great surprise to many outside the Nordics. The transformation of Gasum and the Nordic gas market continues more actively than ever. If we want to lead the transformation also in the future, we simply cannot stay put. We will keep on bringing cleaner energy to our customers in new and innovative ways and continue to expand the production and use of biogas. And, at the same time, we should look for what might be the next major steps in the gas sector. For example, we are following with keen interest how the Power-to-X concept will develop over the next few years and any future opportunities arising from the energy sector integration.

The writer is Public Affairs Manager at Gasum.

1/2020 g a s e t t i 23 Join the cycle

Together with our partners we are responsibly making biogas available on an industrial level in Nordics. www.gasum.com