Date Page 2020-09-16 1 (29)

Abstract aims to become carbon-neutral by 2035. Carbon-neutrality would mean that Finland sequesters as much fossil-fuel carbon dioxide as it releases into the atmosphere in the form of emissions. This document examines the utilisation of carbon dioxide side streams from industry and power stations (hereinafter referred to as CO2 side streams) for the production of carbon-neutral liquid fuels for transportation. The principle behind the idea is that the electrification of transportation will not be able to cover every area of transportation in the near future, particularly in air and ship traffic, but liquid fuels that can substitute for fossil fuels based on hydrocarbons will also be needed in road transport long into the future. They will continue to need carbon dioxide and hydrogen as raw materials. Carbon dioxide can be sequestered directly out of the air (the global carbon dioxide concentration in the air averaged 407.41 ppm, or 0.04074%, on 20 February 2020), or side streams from industry and power stations can be utilised (> 10–30%). Hydrogen is made from water by electrolysis, a process that uses emission-free electricity. In Finland's case, wind power, and the solar power that supplements it, is ideally suited to this. Finland has a unique opportunity to produce carbon-neutral fuels. We have a substantial forestry industry, which ensures an abundance of bio-based carbon dioxide, and a sparsely populated country with a lot of water and plenty of space for wind power. In this document, we will examine three different scenarios. The first represents Business as Usual (BAU), corresponding to current estimates of how the situation will develop. In the other two scenarios, Finland has begun to utilise Power-to-X (P2X) technology alongside the existing situation, enabling synthetic fuels to be produced from the air, water and clean electricity. The scenarios under examination are as follows: 1. BAU: industrial CO2 side streams are not utilised.

2. BAU + P2X Bio: the ten largest bio-based CO2 side streams from Finnish industry are utilised (chemical pulp plants), accounting for 85% of the country's bio-based side streams.

3. BAU + P2X Bio&Fossil: all fossil- and bio-based CO2 side streams are utilised. In the BAU scenario, electricity consumption increases by 70%, in the BAU + P2X Bio scenario, it increases by 270%, and in the BAU + P2X Bio&Fossil scenario, it increases by 530%. However, in the BAU + P2X Bio scenario, the volume of fuels produced for transport would exceed consumption by 60%, meaning that if the bio-based CO2 side streams from the ten largest CO2- emitting localities were utilised to the full, this amount (60%) of carbon-neutral liquid fuel would be available to export. This BAU + P2X Bio scenario is a technically realistic option, and it could transform Finland from a country that imports fossil fuels into one that exports carbon-neutral fuels, thereby achieving carbon neutrality in this regard and becoming independent from fuel imports.

1 https://www.climate.gov/news-features/understanding-climate/climate-change-atmospheric-carbon-dioxide Date Page 2020-09-16 2 (29)

Table of contents

ABSTRACT ...... 1 CARBON-NEUTRAL FINLAND ...... 4

INTRODUCTION ...... 4 CARBON DIOXIDE BALANCES ...... 4 Carbon dioxide emissions from transport ...... 4 Sources of industrial CO2 side streams in Finland in 2018 (million tonnes CO2-eq)...... 5 SOLUTION ...... 6 Synthetic, carbon-neutral fuels for transport ...... 6 Utilisation of side streams in carbon dioxide capture ...... 8 Carbon-neutral Finland from the perspective of fuels for transport ...... 9 Piloting – the Joutseno P2X pilot project ...... 9 OPPORTUNITIES FOR FINLAND ...... 10 SCENARIOS FOR TRENDS IN FINLAND'S ELECTRICITY CONSUMPTION ...... 11

SCENARIOS 2020–2040 ...... 11 Business as Usual (BAU) ...... 12 BAU + P2X Bio ...... 13 BAU + P2X Bio&Fossil ...... 14 SUMMARY OF THE SCENARIOS ...... 15 DISCUSSION ...... 16 GEOGRAPHICAL DEPENDENCE OF THE DEMAND FOR AND GENERATION OF ELECTRICAL ENERGY ...... 17

ELECTRICAL ENERGY REQUIRED TO MANUFACTURE HYDROGEN ...... 17 FINLAND'S WIND POWER GENERATION POTENTIAL ...... 19 Current wind power projects ...... 19 New wind power potential ...... 20 DEPENDENCIES BETWEEN THE DEMAND FOR ELECTRICITY AND WIND POWER GENERATION ...... 22 Date Page 2020-09-16 3 (29)

Scenarios Scenario 1 Business as Usual Industrial CO2 side streams are not utilised Scenario 2 BAU + P2X Bio 85% of industrial bio-based CO2 side streams are utilised Scenario 3 BAU + P2X Bio&Fossil All industrial CO2 side streams are utilised

Figures Figure 1 Tero Tynjälä, 2019, Tampere: Sequestration of carbon dioxide from the atmosphere Figure 2 Refinement of synthetic, carbon-neutral liquid fuel from the CO2 side stream of a chemical pulp plant Figure 3 The P2X process in Joutseno: parties and end-products Figure 4 Increase in demand for electricity in the baseline scenario Figure 5 Increase in demand for electricity if the carbon dioxide emissions of chemical pulp plants (21 million tonnes CO2) are recycled to create fuels Figure 6 Electricity consumption when all bio- and fossil-based carbon dioxide is recycled to create fuels Figure 7 Spot sources of Finland's carbon dioxide and the amount of electricity needed to convert it into fuel. Figure 8 Percentage distribution of the required electricity into top-level categories; bio-based and all CO2 sources Figure 9 Projects currently in planning and implementation Figure 10 Wind power construction areas selected as examples on the basis of wind speed, and the annual generation curve of an Enercon EP5-160 turbine Figure 11 Dependencies between electricity consumption and generation

Tables Table 1 Greenhouse gas emissions in 2018 Table 2 International air traffic Table 3 Emissions and energy use in Finnish domestic transport in 2018 Table 4 Total traffic emissions, summary Table 5 Summary of carbon dioxide side streams Table 6 Summary of the potential of synthetic fuels Table 7 Summary of the different scenarios Table 8 Balances in different scenarios (carbon dioxide, electrical energy, fuel production, increase in consumption) Table 9 Assessment of Finland's wind power potential

Appendices Appendix 1 Greenhouse gas emissions and sequestration by sector, 2013–2018 Appendix 2 LIPASTO: Emissions and energy use in Finnish domestic transport in 2018 Appendix 3 Results of the ALIISA car stock model in 2018 Appendix 4 Sources of industrial CO2 side streams in Finland in 2018 Appendix 5 CO2 sources by locality and region (millions of tonnes of CO2 per year) Appendix 6 CO2 sources by region (millions of tonnes of CO2 per year) Date Page 2020-09-16 4 (29)

Carbon-neutral Finland

Introduction The purpose of this document is to use three scenarios to analyse how Power-to-X (P2X) solutions could help Finland to achieve carbon-neutrality and how Finland could be impacted in terms of employment, investment and emissions under each scenario. The document also analyses the actions that would be required to implement the scenarios. The analysis demonstrates that P2X is not only a major opportunity for Finland, but that it must also be an essential and significant part of Finland's carbon-neutrality solution. The investments in production plants required by carbon-neutral P2X, as well as the investments in electricity generation and transmission needed to produce clean hydrogen, are unprecedented in scale and will take a long time. For this reason, P2X must be placed at the heart of the national energy and climate strategy. It must receive substantial R&D investments in order to develop national expertise. It will be just as important to eliminate the administrative obstacles and impediments to wind power investments and multiply investments in reinforcing the electricity grid, both within Finland and with a view to eliminating bottlenecks on the Nordic electricity market.

Carbon dioxide balances

Carbon dioxide emissions from transport The appendices to this document provide the following summaries of Finland's carbon dioxide emissions by sector and consumption point: Table 1. Greenhouse gas emissions in 2018 (Appendix 1) Emissions within the scope of emissions trading millions of tonnes of CO2-eq 26,2 Emissions outside the scope of emissions trading millions of tonnes of CO2-eq 30,0 CO2 emissions from domestic air traffic millions of tonnes of CO2-eq 0,2 Total emissions, excluding the LULUCF sector millions of tonnes of CO2-eq 56,4

Table 2. International air traffic (Appendix 1) CO2 emissions from international air traffic millions of tonnes of CO2-eq 2,0

Table 3. Emissions and energy use in Finnish domestic transport in 2018 (Appendix 2) Road traffic millions of tonnes of CO2-eq 10,9 Railway traffic (diesel) millions of tonnes of CO2-eq 0,1 Water-borne traffic millions of tonnes of CO2-eq 0,4 Air traffic millions of tonnes of CO2-eq 0,2 Total millions of tonnes of CO2-eq 11,6 Date Page 2020-09-16 5 (29)

In line with the assumption of Appendix 3, it can be estimated that 20% of road traffic and work machinery will move away from powertrains based on combustion engines.

In line with the aforementioned statistics and assumptions (Appendix 3), the following summary of the total emissions from transport can be assumed.

Table 4. Total traffic emissions, summary Total traffic emissions 2018 2040 2040 2040 Combustion Electric Change (%) engine + gas from + hydrogen 2018 Road traffic millions of tonnes of CO2-eq 10,9 8,7 2,2 20% Railway traffic (diesel) millions of tonnes of CO2-eq 0,1 0,0 0,1 100% Water-borne traffic millions of tonnes of CO2-eq 0,4 0,4 0,0 0% Air traffic millions of tonnes of CO2-eq 0,2 0,2 0,0 0% International air traffic millions of tonnes of CO2-eq 2,0 2,0 0,0 0% Work machinery millions of tonnes of CO2-eq 2,5 2,0 0,5 20% Total traffic emissions millions of tonnes of CO2-eq 16,1 13,4 2,7

According to this, Finland will still have 13 million tonnes of CO2-eq emissions due to combustion engines in 2040. This figure will be used as the basis for the calculations.

Sources of industrial CO2 side streams in Finland in 2018 (million tonnes CO2-eq) According to Appendix 5, the carbon dioxide emissions from industry and energy generation is

Table 5. Summary of carbon dioxide side streams millions of tonnes of CO2-eq All Bio Bio-based, 10 localities 20,7 43% 85% Bio-based, other localities 3,6 7% 15% Fossil 24,4 50% Total 48,7 100% 100%

Table 6. Summary of the potential of synthetic fuels Consumption (traffic, work machinery) 13,4 millions of tonnes of CO2-eq Production (industrial bio side streams, 10 localities) 20,7 millions of tonnes of CO2-eq Production (industrial bio side streams, all) 24,4 millions of tonnes of CO2-eq Production (industry, including fossil) 48,7 millions of tonnes of CO2-eq Date Page 2020-09-16 6 (29)

Solution

Synthetic, carbon-neutral fuels for transport Globally, it will not be possible to renew the entire stock of vehicles used for air and ship traffic, heavy machinery and some cars by 2040 – not least the distribution of fuel. As such, carbon-neutral fuels are, in practice, the only solution for carbon-neutral transport in Finland and elsewhere in the world. 2 The solution to traffic emissions and a significant opportunity for the Finnish economy is to recycle the bio-based carbon dioxide from spot sources, especially the production of chemical pulp, by converting it into fuel for transport (petrol, kerosene and diesel) or a mixture (methanol). Such fuels are carbon- neutral if the electricity used to make the hydrogen is generated from renewable sources (wind). Synthetic, liquid fuels require hydrogen and carbon dioxide as raw materials. Hydrogen can be obtained as a side stream from industry, but the yield is very limited, so electrolysis, which uses water (and electricity) as its raw material, is the only solution for larger-scale production. Hydrogen can also be used as a direct raw material for fuel cells. As such, electrolysis is a basic process of a carbon-neutral society. In practice, carbon-neutral carbon dioxide is only available on a large scale in the air, from which it can be sequestered using two different technologies: 1. Photosynthesis (+ cellular respiration) that binds carbon dioxide from the air to make biomass, which, in this study, is wood biomass. This natural process does not require any external energy apart from the energy from the sun. In chemical pulp plants, the wood biomass is used to make chemical pulp, which is a raw material for the paper and card industry. Carbon dioxide is created at the same time – up to three times the mass of chemical pulp that is produced. 2. The Direct Air Capture (DAC) process, which sequesters carbon dioxide from the air using heat and electricity. This process requires plenty of land, in addition to energy and investments. By synthesising carbon dioxide and hydrogen, it is possible to produce synthetic liquid fuels for transport (petrol, kerosene, diesel), which can be input into the existing fuel distribution channels. The carbon dioxide concentration in the side streams from chemical pulp plants varies from 13% to 20%3, while the concentration in the air is approximately 400 ppm, or 0.04%, so separating out carbon dioxide as a side stream is significantly less expensive (investment, energy consumption Î CO2 price) than from the air. The theoretical minimum amount of work to sequester the carbon dioxide from the air is approximately four times the work for separating CO2 from flue gases.4

2 LUT, VTT, CLIC innovation (2019): Green Electrification Innovation Ecosystem final report 3 https://www.sciencedirect.com/science/article/pii/S1750583616307435?via%3Dihub 4 Tero Tynjälä, 2019, Tampere: Sequestration of carbon dioxide from the atmosphere Date Page 2020-09-16 7 (29)

Theoretical minimum work to isolate carbon dioxide Concentration of CO2 in the gas mixture as a function

Air 0.04% ]

2 Waste air 0.1% O C , g

k Flue gases 10–20% l j k [ k r o Biogas 40–50% w

t Ethanol 100% n e r e h n I

CO2 concentration

Figure 1. Tero Tynjälä, 2019, Tampere: Sequestration of carbon dioxide from the atmosphere Date Page 2020-09-16 8 (29)

Utilisation of side streams in carbon dioxide capture The process of producing carbon-neutral liquid fuels for transport can be described by the following diagrams, in which: x yellow shows the carbon dioxide output from the chemical pulp manufacturing process. x green shows the generation of electrical energy. x blue shows the production of hydrogen from water using electricity. x light green shows the production and use of carbon-neutral fuel for transport.

LiikenteenCarbon Neutral hiilineutraalien Mobility polttoaineiden Fuel utilizing valmistus Pulp production selluntuotannon CO2 sidestreams CO2-sivuvirroista

Savukaasun Metsäpohjaiset PulpSellu and/or ja/tai Paper Exhaust CO2 Forest based biomass SellutehdasPulp Mill CO2-pitoisuus biopolttoaineet paperituotteetproducts 10–20% 10-20 %

Auringon PhotosynthesisFotosynteesi + + CO2-sivuvirratCO2 sidestream 12- CO2CO2-päästöt release to Solar energia CellularSoluhengitys Respiration 1220–20% % athmosphereilmakehään

Liikenteen Carbon Neutral Ilman CO2- hiilineutraalit Air CO2 400 Hiilidioksidin Carbon Polttoaine- Mobility Fuels: pitoisuus 400 Direct Air Capture Hiilidioksidi (CO2) Fuel Synthesis polttoaineet: ppm = 0.04% talteenotto ilmasta Dioxide CO2 synteesi Petrol, Diesel, ppm = 0,04% Bensiini, Diesel, Kerosene Kerosiini H2O HiilidioksidipäästötönZero-Carbon Veden HydrogenVety TuulivoimaWind Water Power Electricitysähkö elektrolyysiElectrolysis H2 AlternativesVaihtoehdot for CO2 CO2-sivuvirtojenSidestream CarbonHiilineutraali Neutral Electricity sähköntuotanto Production HiilineutraaliCarbon Neutral polttoainetuotanto Fuel Production käyttöönUtilization Figure 2. Refinement of synthetic, carbon-neutral liquid fuel from the CO2 side stream of a chemical pulp mill The process is as follows: 1. Photosynthesis and cellular respiration bind carbon dioxide from the air into biomass. 2. Wood is harvested for paper and chemical pulp plants and other energy and industrial plants, where the wood raw material is used to make various products, and the carbon dioxide is released back into the atmosphere. 3. At this stage, the carbon dioxide can be captured, purified and further refined with hydrogen produced by electrolysis to create a synthetic, carbon-neutral fuel. 4. The raw materials for electrolysis are electricity generated using wind power (or other carbon-neutral electricity) and water for the production of hydrogen. 5. The fuel synthesis process enables the production of synthetic, carbon-neutral liquid fuels (petrol, kerosene, diesel), which can be used directly in the existing fuel distribution infrastructure. The process is carbon-neutral. Date Page 2020-09-16 9 (29)

Carbon-neutral Finland from the perspective of fuels for transport About half of the carbon dioxide from Finland's chemical pulp plants would be enough to replace all of Finland's transport fuels (petrol, kerosene and diesel). Demand for carbon-neutral fuels is increasing rapidly in global markets. Even if all of the bio-based carbon dioxide available in Finland (24 million tonnes CO2 per year) were refined to make fuel, there would be demand for the fuel in global markets. For example, large airlines, such as Lufthansa and British Airways, have made a commitment to carbon-neutral aviation fuels in their strategies. The technology required for manufacturing is industrially mature (TRL 8–9), and quotes for the equipment required to execute the P2X pilot project in Joutseno were obtained from several world-class suppliers.

Piloting – the Joutseno P2X pilot project In order to kick-start the production of carbon-neutral fuels, LUT University has initiated a feasibility study, and St1 has partnered with LUT to handle the preliminary planning of the project's execution. LUT conducted a similar, but smaller-scale, study in 2018 and 2019 with Wärtsilä and Nebraska Public Power District (USA). This new study will involve synthesising surplus hydrogen from Kemira's plant in Joutseno with carbon dioxide from Finnsementti's plant on an industrial scale – first into methanol (MeOH), and then further into petrol, kerosene and diesel.

Figure 3. The P2X process in Joutseno: parties and end-products

Methanol is a fuel in itself, and it can be used as raw material for petrol, kerosene and diesel drop-in fuels, as well as for various refinement purposes in the chemical industry. The objective of the Joutseno project is to determine the investment and operating costs of the potential pilot plant, as well as the cost-based prices of the fuels produced. The project also involves assessing market demand and different price scenarios that can be used to evaluate the profitability of the pilot plant. Date Page 2020-09-16 10 (29)

Opportunities for Finland If the P2X scenario described in this document is implemented at the scale of Finland's national economy, the most significant structural changes required will be: - Enabling the construction of sufficient electricity generation (in practice, wind power). Approximately 240 TWh of additional electrical energy will be required in order to recycle bio-based carbon dioxide (in the BAU + P2X Bio scenario). Then 10 largest localities have been calculated for this, covering 85% of the sources of bio-based carbon dioxide. The additional electricity required solely for the production of synthetic fuel is approximately 180 TWh. - Converting carbon dioxide emissions from chemical pulp plants into a raw material. - Creating an additive obligation with the adoption of the RED II directive. - Sensible application of the interpretations of the RED II direction (such as the origin of electricity) to Finnish legislation. - Investments in manufacturing equipment and improving processes – more precisely: carbon dioxide capture, hydrogen production and storage, synthesis (methanol Æ petrol, kerosene, diesel), compression (high-speed, AMB bearing-mounted electrical machines), heat management and integration, and purification technologies. - Investments in the electricity grid and gas pipelines. - Tax-exemption for the raw materials, commodities and electricity used in production.

The societal impacts of the P2X scenario would be as follows: - Putting an end to oil purchases in the balance of trade and gaining revenues from exports of synthetic transport fuels would generate EUR 10 billion per year into economy. - New industrial investments implemented with private equity would be worth in the range of EUR 75–90 billion, of which o EUR 35–45 billion would go to synthesis plants built in the localities where chemical pulp plants are currently located o and EUR 40–45 billion would be spent on building power in areas suffering negative development.

Regionally, these impacts would affect declining industrial localities and areas with high unemployment, which would receive - around 40–50% of the new jobs. - around 40–50% of the new investments. - land lease income of EUR 170 million per year, 100%5. - real estate taxes of EUR 370 million per year, 100%. On its own, the construction of wind power in Finland is expected to create move than 30,000 new jobs by 20356. Servicing and maintenance are local jobs requiring a high level of training (higher vocational education).

5 Assumptions: only the impacts of wind power investments • Number of turbines to be constructed: 12,400 • Land lease: EUR 14,000 per turbine per year • Real estate tax: EUR 30,000 per turbine per year 6 Source: Finnish Wind Power Association, Ramboll Date Page 2020-09-16 11 (29)

Scenarios for trends in Finland's electricity consumption These scenarios were prepared in collaboration with LUT University and Wärtsilä, mainly for the purpose of strategic analysis. The scenarios seek to illustrate the matters requiring further study and the focal areas of electricity consumption, generation needs and transmission. The perspective was to analyse the impact on electricity consumption of recycling carbon dioxide to create fuel (the P2X process). The consumption of electricity was calculated via the required hydrogen manufacturing volumes. Capturing the carbon dioxide from spot sources will increase consumption by approximately 5%: This has not been taken into consideration. The scenarios have taken into consideration the fact that the chemical industry's present practice of manufacturing hydrogen from natural gas will end and switch to electrolysis (600 MW) due to the high carbon dioxide emissions. As regards the electrification of heating, direct electric heating was used. In this regard, the use of heat pumps in heating systems reduces electricity consumption, so the value is an overestimate. At present, a large proportion of the carbon dioxide emissions due to heating is released in Helsinki (11 TWh from coal and oil in 2018) and oil heating systems in small houses.

Scenarios 2020–2040 Three scenarios are examined: 1. Business as Usual (BAU) o Current growth in electricity: 1% o Electrification of heating o New datacentres are built in Finland o SSAB's factory in Raahe switches to electric-arc furnaces: 10 TWh

2. BAU + P2X Bio (21 million tonnes CO2 per year) o Manufacturing methanol by recycling bio-based carbon dioxide (P2X) o Ten localities (Appendix 5) covering 85% of bio-based CO2 sources o Substituting hydrogen reforming

3. BAU + P2X Bio&Fossil (48 million tonnes CO2 per year) o Manufacturing methanol by recycling bio-based carbon dioxide (P2X) o Manufacturing methanol by recycling fossil-based carbon dioxide (P2X) o Substituting hydrogen reforming

When analysing the scenarios, it should be noted that the amount of carbon dioxide required for transport fuel is around 13 million tonnes CO2 per year, so in scenarios 2 and 3, the amount of carbon-neutral fuel available for export would be as follows:

Table 7. Summary of the scenarios (carbon dioxide sequestered into fuel, million tonnes CO2) Scenario Import Consumption Export Export/consumption (%) 1. Business as Usual 13 13 - -0% 2. BAU + P2X Bio - 13 8 +60% 3. BAU + P2X Bio & Fossil - 13 36 +270% Scenario 1 is based on imported fossil fuels. Scenarios 2 and 3 are carbon-neutral. Date Page 2020-09-16 12 (29)

Business as Usual (BAU) Electricity consumption in the Business as Usual scenario – providing that demand does not change substantially – would increase from the present value of approximately 90 TWh to 140 TWh (+50 TWh). In this scenario, almost all of the fuel used for transport is imported, and it does not, therefore, affect the amount of electricity consumption in Finland.

Electricity consumption, not P2X (TWh el)

Datacentres

Converting heating systems to electricity

SSAB, Raahe

Consumption of present type

Figure 4. Increase in demand for electricity in the baseline scenario Date Page 2020-09-16 13 (29)

BAU + P2X Bio The BAU + P2X scenario includes hydrogen manufactured using electricity. The hydrogen is used for methanol synthesis and replaces natural gas reforming. As shown in Figure 5, the discontinuation of natural gas reforming and replacement by hydrogen manufacturing by electrolysis does not markedly increase electricity consumption. The largest increase in consumption comes from recycling bio-based LULUCF carbon dioxide emissions from chemical pulp plants (21 million tonnes CO2) to make fuel. Total electricity consumption would be approximately 320 TWh, including approximately 230 TWh of additional electricity consumption, meaning that consumption would be three or four times higher. In this scenario, it would be possible to export transport fuels in an amount corresponding to 60% of Finland's national consumption.

Electricity consumption, Bio, 10 localities (TWh el)

Datacentres

Converting heating systems to electricity

SSAB, Raahe

CH4 reformation ==> electrolysis

Fossil-based MeOH

Bio-based MeOH, 10 localities

Consumption of present type

Figure 5. Increase in demand for electricity if the carbon dioxide emissions of chemical pulp plants (21 million tonnes CO2) are recycled to create fuels This scenario includes the 10 largest localities that produce CO2 side streams, covering 85% of all bio-based carbon dioxide side streams. In order of the volume of CO2 side streams, the localities are: 1. Äänekoski 2. Lappeenranta 3. Kemi 4. Pietarsaari 5. 6. Kouvola 7. 8. Oulu 9. Rauma 10. Kotka Date Page 2020-09-16 14 (29)

BAU + P2X Bio&Fossil The third scenario includes the manufacturing of hydrogen using electricity in order to synthesise methanol and replace natural gas reforming. In addition, all of the bio- and fossil-based carbon dioxide side streams are utilised in this scenario.

Figure 6 shows that recycling fossil carbon dioxide (24 million tonnes CO2) to make fuel would give rise to an increase in consumption corresponding approximately to the increase in consumption required to recycle the carbon dioxide emissions from chemical pulp plants. The increase in consumption would be approximately 540 TWh, meaning that consumption would be six times higher, and 450 TWh of new electrical energy would be required.

Electricity consumption, all (TWh el)

Datacentres

Converting heating systems to electricity SSAB, Raahe

CH4 reformation ==> electrolysis Fossil-based MeOH

Bio-based MeOH

Consumption of present type

Figure 6. Electricity consumption when all bio- and fossil-based carbon dioxide is recycled to create fuels Date Page 2020-09-16 15 (29)

Summary of the scenarios The table below shows the processed CO2 balance, and the amount of electrical energy required every year for methanol production.

Table 8. Balances in different scenarios (carbon dioxide, electrical energy, fuel production, increase in consumption)

Scenario 1. 2. 3. BAU BAU BAU + P2X Bio + P2X Bio + P2X Fossil CO2 balance millions of Production (side streams) tonnes of CO2 0 21 48 millions of Consumption in transport tonnes of CO2 13 13 13 millions of Export tonnes of CO2 - 8 35 Export/consumption (%) % - 62% 269%

Electrical energy balance 2040 Current consumption TWh 88 88 88 Consumption 2040 TWh 148 324 549 Increase in consumption TWh 61 237 462 Increase in consumption % 69% 271% 528%

Fuel production 2040 millions of Production (side streams) tonnes of CO2 21 48 Electricity required TWh 176 401 TWh per million Electricity required tonnes CO2 8,5 8,5

Increase in consumption (2020–2040) Increase in consumption TWh 19 19 19 CO2 conversion TWh 0 176 401 Steel industry TWh 14 14 14 Electrification of heating TWh 20 20 20 Datacentres TWh 8 8 8 Total TWh 61 237 462 Date Page 2020-09-16 16 (29)

Discussion If the EU succeeds in its climate goals, it is unlikely that there will be very much, if any, fossil-based carbon dioxide recycling (P2X) remaining in 2040, with the exception of the carbon dioxide released in the production of cement.7 The elimination of fossil sources could be assumed to have occurred if Finland reaches its objective of becoming carbon-neutral. The tool here is the European Union Emissions Trading System (EU ETS)8, which helps the EU to regulate the price per tonne of fossil-fuel emissions for corporations. By increasing the price per tonne of fossil-based carbon dioxide emissions on the emissions trading system, the production costs will increase and production will become unprofitable. Conversely, it is highly likely that demand for bio-based, carbon-neutral P2X fuels (methanol, kerosene, diesel, petrol) will remain past 2040 (aeroplanes, ships, heavy machinery), as described above. The scenarios were created at a rapid pace to address questions of current relevance, so they still include some uncertainties and should be modelled in more detailed if they are to be used as the basis for further planning.

7 Approximately 1.5 tonnes of limestone is required to manufacture one tonne of clinker, liberating approximately 500 kg of carbon dioxide in the process. The calcination of limestone is an essential chemical reaction in the production of cement clinker. (Calcium carbonate CaCO3 is converted into burnt lime CaO, and the process releases carbon dioxide CO2). Source: https://finnsementti.fi/wp-content/uploads/2018/09/Finnsementti_ymparistoraportti_2018.pdf 8 https://ec.europa.eu/clima/policies/ets_en Date Page 2020-09-16 17 (29)

Geographical dependence of the demand for and generation of electrical energy

Electrical energy required to manufacture hydrogen Finland's carbon dioxide sources are spot sources in industry and power stations. Using hydrogen produced by electrolysers to refine emissions from the ten localities with the largest sources of bio- based emissions (covering 85% of all bio-based spot emissions) to create liquid fuels would require a total of 176 TWh of electricity, as shown in the map and list to the left.

Refining all of the CO2 emissions from bio- and fossil-based sources (a total of 42 million tonnes CO 2) would require 414 TWh of electricity, as shown in the regional map and table to the right. Electricity needed (TWh), Electricity needed, all CO2 sources 85% bio CO2 sources (> 10 TWh)

Location TWh Region TWh Region TWh 1 Äänekoski 27 1 Uusimaa 76 11 North Savo 10 2 Lappeenranta 24 2 North Ostrobothnia 56 12 Päijät-Häme 8 3 Kemi 20 3 South 47 13 Pirkanmaa 8 4 Pietarsaari 19 4 Lapland 40 14 Kanta-Häme 4 South 5 Imatra 18 5 Central Finland 37 15 Ostrobothnia 4 6 Kouvola 17 6 Kymenlaakso 33 16 South Savo 3 7 Joensuu 16 7 Ostrobothnia 31 17 Kainuu 2 Central 8 Oulu 13 8 Satakunta 21 18 Ostrobothnia 2 9 Rauma 13 9 North Karelia 17 19 Åland 0 10 Kotka 10 10 Southwest Finland 16 Total 414 Total 176 Figure 7. Spot sources of Finland's carbon dioxide and the amount of electricity needed to convert it into fuel Date Page 2020-09-16 18 (29)

Proportion of required electricity by major region, electrolysers (%) The figure below shows the percentage distribution of the required electricity according to Finland's major regions. The figure shows that the percentage distribution is similar, whether the scenario involves utilising only the bio-based CO2 side streams or all (bio + fossil) CO2 side streams. The greatest demand for electricity is in the south and west, and the lowest demand is in the north and east.

Division into major regions – All bio sources Division into major regions – All CO2 sources (207 TWh) (414 TWh)

Figure 8. Percentage distribution of the required electricity into top-level categories; bio-based and all CO2 sources Date Page 2020-09-16 19 (29)

Finland's wind power generation potential Wind power has become clearly the cheapest form of electricity generation in terms of generation costs. Taking into consideration the rapid development of turbine technology, Finland is in an excellent position to adopt large-scale wind power generation. Investments are profitable at market prices, so there is no need to subsidise wind power construction.

Current wind power projects Of the current projects9, projects with approximately 4.2 GW of output – generating approximately 12 TWh of energy per year (with an assumed capacity ratio of 35% and a rated output of 4 MW) – are currently in the investment phase. An additional 12.3 GW of wind power – approximately 37 TWh per year (capacity ratio 35%, peak operating time 3,066 hours per year, rated output 4 MW) – is in the planning phase. At present, an approximate total of 50 TWh of wind power energy can be implemented (total existing, in progress and planned).

Figure 9. Projects currently in planning and implementation

9 Source: https://www.ethawind.com/suomen-tuulivoimapuistot Date Page 2020-09-16 20 (29)

New wind power potential The annual outputs and peak operating times of new turbines that are currently available are better than for earlier models. In ten years, the increase in productivity has been very fast. Costs per GWh of generation have fallen by approximately 80% over the same period, and wind power has become the cheapest form of electricity generation in Finland.10 Wind power generation is centralised on the west coast as the cost of the Gulf of Finland, south-east Finland, North Karelia, Kainuu and east Lapland have been areas in which the Finnish Defence Forces have prevented the construction of wind power on the grounds of radar blind spots and monitoring of incursions into Finnish airspace. A solution to the radar issue must be found; indeed, it is essential from the perspective of Finland's electrification. Cheap industrial electricity and enabling the manufacturing of national P2X fuels will require Finland's entire land area to be put to use for wind power generation. If it is assumed that the windiest areas in Finland can be used without restrictions, turbines will be constructed one kilometre apart (one turbine per square kilometre), the used capacity rate will be 10% in the selected areas, and the used capacity rate for the entire country will be 3.7% of the entire land area11. It can, therefore, be stated that the increased demand for electricity could be satisfied using existing turbine technology.

Figure 10. Wind power construction areas (shown in purple on the map) on the basis of wind speed. Source: https://globalwindatlas.info/ and the annual generation curve of an Enercon EP5-160 turbine Figure 10 shows the potential areas selected for assessment, as well as the annual generation curve of the Enercon EP5-160 turbine, which was used for the evaluation. With the assumptions made for scenario 2 (BAU + 10 largest localities in terms of bio-based CO2 sources), 11,300 new wind turbines would be constructed in Finland. The total annual output of the turbines would be approximately 250 TWh. The potential new electrical energy would suffice for producing P2X fuels from chemical pulp plant emissions in an amount corresponding to approximately 1.5 times Finland's consumption. The calculations are shown in the table below.

10 Fingrid's Jukka Ruusunen: People in Finland do not yet understand how excellent wind power is in price – "The military's radar concerns must be resolved quickly" https://yle.fi/uutiset/3-11045496 11 Denmark's target for 2030 is 4.1% of the land area, and Denmark is much more densely populated than Finland. Date Page 2020-09-16 21 (29)

Table 9. Assessment of Finland's wind power potential Northern Southern South Central Southern In Lapland Lapland Karelia Finland Finland total + Kainuu + Savo + Ostrobothnia + Kymi

Area km2 47 000 33 000 12 000 37 000 14 000 143 000 Production, pole height 150 m Average speed, min m/s 8,1 8,1 8,1 7,9 7,5 Annual production GWh/unit 21,0 22,0 22,0 22,0 22,0 GWh/km2 21,0 22,0 22,0 22,0 22,0 Full coverage TWh/area 987 726 264 814 308 3 099 Share 32% 23% 9% 26% 10% 100% Default: one turbine per square kilometer

Scenario 1 2 3 BAU BAU BAU + P2X Bio + P2X Bio + P2X Fossil Increase in consumption TWh 61 237 462 Pole height 150 m Full coverage production TWh 3 099 3 099 3 099 Occupancy rate requirement % 2% 8% 15% Number of turbines pcs 2900 11000 21400 Installed power MW 14 500 55 000 107 000 Peak operating time h/year 4200 4300 4300 Capacity factor % 48% 49% 49%

The estimate is based on the annual generation curve of the Enercon EP5-160 turbine (Figure 10). Date Page 2020-09-16 22 (29)

Dependencies between the demand for electricity and wind power generation

Consumption Production

Figure 11. Dependencies between electricity consumption and generation Figure 11 shows that wind power generation is clustered in the east and north, while the spot sources of carbon dioxide are mostly in the south. The new for electricity transmission is greatest from northern Finland to southern Finland (red lines), requiring massive transmission lines. The other parts are fairly well balanced (blue lines). From the perspective of infrastructure construction, one significant challenge is the role of Finland's gas network in the implementation of P2X. This leads to the question of whether it is less expensive to transport electricity or hydrogen – in other words, whether electrolysers, which are heavy consumers of electricity, should be built near sources of carbon dioxide or sources of electricity. Other European countries are transitioning to hydrogen at a rapid pace, as hydrogen is an emission-free gas in comparison with natural gas. The growth in P2X fuel production will also affect the transition of the gas network. An additional option is to build pipelines to carry carbon dioxide, as carbon dioxide is cheaper to transport than hydrogen thanks to its chemical properties. Date Page 2020-09-16 23 (29)

Appendix 1 Greenhouse gas emissions and sequestration by sector, 2013–2018, Statistics Finland https://www.stat.fi/til/khki/2018/khki_2018_2019-05-23_tie_001_en.html

Year 2013 2014 2015 2016 2017 20181) Total emissions, excluding the LULUCF sector 2) 63 58.8 55.2 58.1 55.4 56.5 CO2 emissions from domestic air traffic 0.2 0.2 0.2 0.2 0.2 0.2 Emissions within the scope of emissions trading 3) 31.5 28.8 25.5 27.2 25.1 26.2 Energy sector 27.6 25.1 21.6 23 21.1 22 Industrial processes 4 3.7 3.9 4.2 4 4.2 Statistical difference between emissions trading and inventory 4) -0.1 0 -0.1 0.1 0 Emissions outside the scope of emissions trading 5) 31.3 29.8 29.5 30.7 30.1 30.0 Energy sector 20.4 19.1 18.8 20.2 19.7 20.2 Domestic traffic5) 11.8 10.7 10.7 11.9 11.3 11.5 Work machinery 2.6 2.5 2.4 2.3 2.4 2.5 Other energy-based 6) 6 5.9 5.7 6 6 6.2 Industrial processes and use of products 1.9 1.9 2 1.9 1.9 1.7 Industrial processes (excluding F gases) 7) 0.5 0.5 0.5 0.5 0.6 0.4 Use of F gases 7) 1.5 1.5 1.4 1.4 1.3 1.3 Agriculture 6.5 6.6 6.5 6.6 6.5 6.3 Waste processing 2.3 2.2 2.1 2 1.9 1.8 Indirect CO2 emissions 0.1 0.1 0.1 0.1 0.1 0.1 Statistical difference between emissions trading and inventory 4) 0.1 0 0.1 -0.1 0

LULUCF sector 2) -19 -21.8 -20.1 -18.5 -20.4 -14.2

1) Proxy estimate 2) LULUCF refers to the land use, land-use change and forestry sector. The sector does not come under the scope of the Emissions Trading System or the reduction targets under the Effort Sharing Decision 3) Source: Energy Authority 4) The divergence caused by the methodological and definitional differences in total emissions in the emissions trading sector between the data of the Energy Authority and the Greenhouse Gas Inventory 5) Excluding CO2 emission from domestic civil aviation according to the inventory 6) Includes emissions from sources such as heating in buildings, waste incineration and fuel use in industry 7) F-gases refer to fluorinated greenhouse gases (HFC, PFC compounds, SF6 and NF3)

Emissions from international air traffic The carbon dioxide emissions from air traffic between Finland and other countries increased from one million tonnes in 1990 to almost two million tonnes in 2016. https://www.syke.fi/fi-FI/Ajankohtaista/Lentamisen_paastot_kasvavat__tekninen_ke(48975) Date Page 2020-09-16 24 (29)

Appendix 2 Emissions and energy use in Finnish domestic transport (LIPASTO 2018), VTT http://www.lipasto.vtt.fi/en/index.htm

CO2e[million Domestic traffic1) tonnes] Road traffic 10,90 Railway traffic (diesel) 0,06 Water-borne traffic2) 0,42 Air traffic 0,22 Total 11,60 1) According to the IPCC reporting guidelines only emissions from domestic traffic are allocated to Finland 2) Water-borne traffic includes pleasure craft and ship traffic but not fishing vessels Date Page 2020-09-16 25 (29)

Appendix 3 Results of the ALIISA car stock model in 2018, VTT http://www.lipasto.vtt.fi/en/aliisa/aliisa_results.htm

The diagram below was derived from the section of the table entitled 'Energy use of automobiles in traffic use [PJ/a]'

Use of energy by vehicles in transport use Source: ALIISA car stock model, Updated: 16.8.2019

Combustion engine Gas+electricity+hydrogen Date Page 2020-09-16 26 (29)

Appendix 4 Sources of industrial CO2 side streams in Finland in 2018

Factory/power station CO2 production (ton) TWh to Location Region Major region

Fossil Bio Total Kumu P2X ton ton ton % % TWh el Total 24,363,619 24,354,781 48,718,400 403 Neste Corporation's Porvoo refinery 3,500,000 0 3,500,000 7% 7% 29 Porvoo Uusimaa Southern Finland Metsä Fibre Oy's chemical pulp factory in Äänekoski 0 2,925,000 2,925,000 6% 13% 24 Äänekoski Central Finland Western Finland SSAB Europe Oy (formerly RUUKKI METALS OY) Raahe steel factory 2,410,000 0 2,410,000 5% 18% 20 Raahe North Ostrobothnia Northern Finland Stora Enso Oyj's factories in Imatra 160,000 2,100,000 2,260,000 5% 23% 19 Imatra Southern Finland UPM-KYMMENE CORPORATION UPM Pietarsaari 3,310 1,876,690 1,880,000 4% 27% 16 Pietarsaari Ostrobothnia Western Finland Metsä Fibre Oy Kemi 620,000 1,185,000 1,805,000 4% 30% 15 Kemi Lapland Northern Finland STORA ENSO OYJ ENOCELL FACTORY 40,800 1,619,200 1,660,000 3% 34% 14 Joensuu North Karelia Eastern Finland UPM-Kymmene Corporation Kymi 102,000 1,468,000 1,570,000 3% 37% 13 Kouvola Kymenlaakso Southern Finland Raahen Voima Oy 1,530,000 0 1,530,000 3% 40% 13 Raahe North Ostrobothnia Northern Finland Metsä Fibre Oy Joutseno factory 24,000 1,448,000 1,472,000 3% 43% 12 Lappeenranta South Karelia Southern Finland Helen Oy's power stations in Vuosaari 1,470,000 0 1,470,000 3% 46% 12 Helsinki Uusimaa Southern Finland UPM-Kymmene Corporation's factories in Kaukas 79,900 1,340,100 1,420,000 3% 49% 12 Lappeenranta South Karelia Southern Finland STORA ENSO OYJ Oulu factory Oulu 260,000 1,110,000 1,370,000 3% 52% 11 Oulu North Ostrobothnia Northern Finland Metsä Fibre Oy Rauma factory 84,000 1,152,000 1,236,000 3% 54% 10 Rauma Satakunta Western Finland Turun Seudun Energiantuotanto Oy's power station in Naantali 1,100,000 10,000 1,110,000 2% 57% 9 Naantali Southwest Finland Southern Finland Vaskiluodon Voima Oy 725,000 180,000 905,000 2% 59% 7 Vaasa Ostrobothnia Western Finland Stora Enso Oyj's factory in Sunila 42,700 850,300 893,000 2% 60% 7 Kotka Kymenlaakso Southern Finland Stora Enso Oyj's factory in Veitsiluoto 45,800 805,200 851,000 2% 62% 7 Kemi Lapland Northern Finland OULUN ENERGIA Toppila power stations Oulu power production 518,000 274,000 792,000 2% 64% 7 Oulu North Ostrobothnia Northern Finland Fortum Power and Heat Oy Suomenoja power station 743,000 0 743,000 2% 65% 6 Espoo Uusimaa Southern Finland Oy Alholmens Kraft Ab 363,000 367,000 730,000 1% 67% 6 Pietarsaari Ostrobothnia Western Finland Helen Oy's Hanasaari B power station 716,000 0 716,000 1% 68% 6 Helsinki Uusimaa Southern Finland Outokumpu Chrome Oy Outokumpu Stainless Oy Tornio factories 708,000 0 708,000 1% 70% 6 Tornio Lapland Northern Finland Helen Oy's power stations in Salmisaari 671,000 0 671,000 1% 71% 6 Helsinki Uusimaa Southern Finland Stora Enso Oyj's factories in Varkaus 67,100 552,900 620,000 1% 72% 5 Varkaus North Savo Eastern Finland TAMPEREEN SÄHKÖLAITOS OY NAISTENLAHTI POWER STATION 366,000 229,000 595,000 1% 74% 5 Tampere Pirkanmaa Western Finland Stora Enso Oyj's power station in Veitsiluoto 238,000 339,000 577,000 1% 75% 5 Kemi Lapland Northern Finland Kotkamills Oy Kotka factories 246,000 278,000 524,000 1% 76% 4 Kotka Kymenlaakso Southern Finland Finnsementti Oy Parainen / cement factory 501,000 0 501,000 1% 77% 4 Parainen Southwest Finland Southern Finland LAHTI ENERGIA OY KYMIJÄRVI POWER STATION 471,000 0 471,000 1% 78% 4 Lahti Päijät-Häme Southern Finland Vaskiluodon Voima Oy Seinäjoki peat power station 353,000 114,000 467,000 1% 79% 4 Seinäjoki South Ostrobothnia Western Finland Borealis Polymers Oy alkene production 457,000 0 457,000 1% 80% 4 Porvoo Uusimaa Southern Finland Kymin Voima Oy 54,300 372,700 427,000 1% 81% 4 Kouvola Kymenlaakso Southern Finland Vantaan Energia Oy Martinlaakso power station 421,000 0 421,000 1% 81% 3 Vantaa Uusimaa Southern Finland Rauman Biovoima Oy 47,600 328,400 376,000 1% 82% 3 Rauma Satakunta Western Finland Jyväskylän Voima Oy Keljonlahti power station 365,000 0 365,000 1% 83% 3 Jyväskylä Central Finland Western Finland Tornion Voima Oy power station and boiler plant for the Röyttä industrial area 248,000 112,000 360,000 1% 84% 3 Tornio Lapland Northern Finland Fortum Power and Heat Oy Meri-Pori power station 356,000 0 356,000 1% 84% 3 Pori Satakunta Western Finland Stora Enso Oyj Heinola fluting plant 155,000 175,000 330,000 1% 85% 3 Heinola Päijät-Häme Southern Finland Fortum Power and Heat Oy JOENSUU POWER STATION 77,600 248,400 326,000 1% 86% 3 Joensuu North Karelia Eastern Finland Ekokem Oy Ab Riihimäki site 323,000 0 323,000 1% 86% 3 Riihimäki Kanta-Häme Southern Finland ETELÄ-SAVON ENERGIA OY PURSIALA POWER STATION 60,000 261,000 321,000 1% 87% 3 Mikkeli South Savo Eastern Finland Sappi Finland Operations Oy Kirkniemi power station 203,000 102,000 305,000 1% 88% 3 Lohja Uusimaa Southern Finland Neste Corporation's Naantali refinery 292,000 0 292,000 1% 88% 2 Naantali Southwest Finland Southern Finland Savon Sellu Oy 98,400 190,600 289,000 1% 89% 2 Kuopio North Savo Eastern Finland UPM Paper ENA Oy UPM Specialty Papers Oy Jämsänkoski paper mill 83,900 203,100 287,000 1% 90% 2 Jämsä Central Finland Western Finland KAINUUN VOIMA OY Kajaani steam power station 84,000 187,000 271,000 1% 90% 2 Kajaani Kainuu Eastern Finland Stora Enso Oyj's factories in Anjalankoski 138,000 124,000 262,000 1% 91% 2 Kouvola Kymenlaakso Southern Finland KUOPION ENERGIA OY HAAPANIEMI POWER STATION 258,000 0 258,000 1% 91% 2 Kuopio North Savo Eastern Finland UPM Paper ENA Oy Kaipola factory 67,000 188,000 255,000 1% 92% 2 Jämsä Central Finland Western Finland Napapiirin Energia ja Vesi Oy Suosiola power station 105,000 141,000 246,000 1% 92% 2 Rovaniemi Lapland Northern Finland Äänevoima Oy 43,500 198,500 242,000 0% 93% 2 Äänekoski Central Finland Western Finland Metsä Board Oyj Simpele 78,800 133,200 212,000 0% 93% 2 Rautjärvi South Karelia Southern Finland SMA MINERAL OY Röyttä lime factory 200,000 0 200,000 0% 94% 2 Tornio Lapland Northern Finland Porin Prosessivoima Oy 197,000 0 197,000 0% 94% 2 Pori Satakunta Western Finland Elenia Lämpö Oy Vanaja power station Hämeenlinna 57,200 133,800 191,000 0% 94% 2 Hämeenlinna Kanta-Häme Southern Finland LAANILAN VOIMA OY power station for the Laanila industrial area 135,000 56,000 191,000 0% 95% 2 Oulu North Ostrobothnia Northern Finland Porvoon Energia Oy Tolkkinen power stations 801 183,199 184,000 0% 95% 2 Porvoo Uusimaa Southern Finland Fortum Power and Heat Oy Järvenpää power station 4,000 164,000 168,000 0% 95% 1 Järvenpää Uusimaa Southern Finland Kaukaan Voima Oy 165,000 0 165,000 0% 96% 1 Lappeenranta South Karelia Southern Finland Vantaan Energia Oy waste-to-energy plant 165,000 0 165,000 0% 96% 1 Vantaa Uusimaa Southern Finland Kotkan Energia Oy Hovinsaari power station 56,100 102,900 159,000 0% 96% 1 Kotka Kymenlaakso Southern Finland Pori Energia Oy Aittaluoto power station 159,000 0 159,000 0% 97% 1 Pori Satakunta Western Finland NORDKALK Oyj Abp Raahe lime kiln 155,000 0 155,000 0% 97% 1 Raahe North Ostrobothnia Northern Finland Keravan Lämpövoima Oy Kerava power station 36,200 117,800 154,000 0% 97% 1 Kerava Uusimaa Southern Finland TAMPEREEN SÄHKÖLAITOS OY Lielahti power station 150,000 0 150,000 0% 98% 1 Tampere Pirkanmaa Western Finland Jyväskylän Energiantuotanto Oy Rauhalahti power station 144,000 0 144,000 0% 98% 1 Jyväskylä Central Finland Western Finland Mäntän Energia Oy power station 88,000 53,000 141,000 0% 98% 1 Mänttä-Vilppula Pirkanmaa Western Finland Kokkolan Energia Oy (formerly Oy Kokkola Power Ab) 114,000 20,000 134,000 0% 99% 1 Kokkola Central Ostrobothnia Northern Finland Kokkolan Voima Oy Ykspihlaja power station 46,400 75,600 122,000 0% 99% 1 Kokkola Central Ostrobothnia Northern Finland PVO-Lämpövoima Oy Kristiina power plant 115,000 0 115,000 0% 99% 1 Kristiinankaupunki Ostrobothnia Western Finland OULUN ENERGIA Laanila eco power station 58,000 57,000 115,000 0% 99% 1 Oulu North Ostrobothnia Northern Finland PVO Lämpövoima Oy Tahkoluoto power station 115,000 0 115,000 0% 100% 1 Pori Satakunta Western Finland KOSKISEN OY KÄRKÖLÄ PLANTS 1,560 102,440 104,000 0% 100% 1 Kärkölä Päijät-Häme Southern Finland KUMPUNIEMEN VOIMA OY power station 248 100,752 101,000 0% 100% 1 Äänekoski Central Finland Western Finland AGA hydrogen plant (NESTE, Kilpilahti) 26,400 0 26,400 0% 100% 0 Porvoo Uusimaa Southern Finland Date Page 2020-09-16 27 (29)

Appendix 5 CO2 sources by locality (millions of tonnes of CO2 per year)

Appendix 5a Bio-based CO2 sources

Bio-based CO2 sources CO2 side streams Electricity required No Municipality millions of tonnes of CO2 cumul. TWh cumul. cumul. % 1 Äänekoski 3.2 3.2 27 27 13% 2 Lappeenranta 2.8 6.0 24 51 25% 3 Kemi 2.3 8.3 20 71 34% 4 Pietarsaari 2.2 10.6 19 90 43% 5 Imatra 2.1 12.7 18 108 52% 6 Kouvola 2.0 14.6 17 125 60% 7 Joensuu 1.9 16.5 16 140 68% 8 Oulu 1.5 18.0 13 153 74% 9 Rauma 1.5 19.5 13 166 80% 10 Kotka 1.2 20.7 10 176 85% Other 22 municipalities 3.6 24.4 31 207 100% Total 24.4 207

Appendix 5b All CO2 sources

All CO2 sources CO2 side streams Electricity required No Municipality millions of tonnes of CO2 cumul. TWh cumul. cumul. % 1 Porvoo 4.2 4.2 35 35 9% 2 Raahe 4.1 8.3 35 70 17% 3 Äänekoski 3.3 11.5 28 98 24% 4 Kemi 3.2 14.8 27 125 30% 5 Lappeenranta 3.1 17.8 26 151 37% 6 Helsinki 2.9 20.7 24 176 42% 7 Pietarsaari 2.6 23.3 22 198 48% 8 Oulu 2.5 25.8 21 219 53% 9 Imatra 2.3 28.0 19 238 58% 10 Kouvola 2.3 30.3 19 257 62% Other 32 municipalities 18.4 48.7 157 414 100% Total 48.7 414 Date Page 2020-09-16 28 (29)

Appendix 6 CO2 sources by region (millions of tonnes of CO2 per year)

Appendix 6a Bio-based CO2 sources

Bio CO2 sources CO2 side streams Electricity required No Region millions of tonnes of CO2 cumul. TWh cumul. cumul. % 1 South Karelia 5.0 5.0 43 43 21% 2 Central Finland 3.6 8.6 31 73 35% 3 Kymenlaakso 3.2 11.8 27 101 49% 4 Lapland 2.6 14.4 22 123 59% 5 Ostrobothnia 2.4 16.8 21 143 69% 6 North Karelia 1.9 18.7 16 159 77% 7 North Ostrobothnia 1.5 20.2 13 172 83% 8 Satakunta 1.5 21.7 13 184 89% 9 North Savo 0.7 22.4 6 191 92% 10 Uusimaa 0.6 23.0 5 195 94% Other regions 1.4 24.4 12 207 100% Total 24.4 207

Appendix 6b All CO2 sources

All CO2 sources CO2 side streams Electricity required No Region millions of tonnes of CO2 cumul. TWh cumul. cumul. % 1 Uusimaa 9.0 9.0 76 76 18% 2 North Ostrobothnia 6.6 15.5 56 132 32% 3 South Karelia 5.5 21.1 47 179 43% 4 Lapland 4.7 25.8 40 219 53% 5 Central Finland 4.3 30.1 37 256 62% 6 Kymenlaakso 3.8 34.0 33 289 70% 7 Ostrobothnia 3.6 37.6 31 320 77% 8 Satakunta 2.4 40.0 21 340 82% 9 North Karelia 2.0 42.0 17 357 86% 10 Southwest Finland 1.9 43.9 16 373 90% Other regions 4.8 48.7 41 414 100%