Finland to shut biomass power plant amid winter electricity shortfall

Finland is preparing to close the AK2 biomass power unit owned by Alholmens Kraft in Pietarsaari at the start of March, cutting roughly 240 megawatts of generation that has historically been used during cold weather or supply shortages. The plant, which also supplies process steam to a nearby pulp mill, represents about one-fourth of the output of the Loviisa nuclear station. The closure adds pressure to an already strained electricity system, as the government and transmission operator Fingrid report a shortage of balancing power.

Company chief Björn Åkerlund cites insufficient electricity prices over extended periods as the reason the plant is no longer financially viable. To maintain district heating, Alholmens Kraft will install electric boilers totaling 120 megawatts this spring, which will operate when electricity prices are low. The plant’s fuel mix includes wood chips from UPM’s pulp mill, peat and coal, and its ownership is split between UPM, local energy firms via Katternö Kraft, and indirectly through Pohjolan Voima.