Offshore wind is the next industrial opportunity for Finland

An opportunity we cannot afford to miss

Investing in offshore wind strengthens Finland’s energy self-sufficiency and reduces dependence on fossil fuels in an unstable geopolitical environment. Offshore wind significantly increases renewable electricity generation to meet the needs of an increasingly electrified society and new industrial facilities, such as steelworks and data centres.

The industrial value chain emerging around offshore wind, together with products with high added value, will bring economic growth, jobs and regional vitality to Finland. For example, building the foundations for the 40 offshore wind turbines planned off Tahkoluoto would generate approximately 3,500 person-years of employment. Offshore wind hubs’ deep-water access channels, heavy-duty quays, yard areas, repair capabilities, and road and rail links serve offshore wind and other industries under normal conditions. During disruptions, the same capacity also supports heavy cargo logistics, the maintenance of vessels operated by public authorities, military mobility and readiness to repair critical infrastructure.

Building an offshore wind value chain in Finland requires active measures

Now is the time to advance offshore wind; otherwise, we will lose out to our international competitors. To get offshore wind projects under way, initial public support is needed to develop port infrastructure and the industrial value chain, and to initiate investment. Private offshore wind farms must be distinguished from the shared port infrastructure that serves them. State involvement is most justified in long-lasting, openly accessible infrastructure that serves multiple projects, industry and security of supply.

Public support must stimulate private investment, not replace it. These investments will enable offshore wind to operate on market terms in the future, as onshore wind already does.

Decisions to promote offshore wind must be made now so that the first offshore wind hubs can emerge in the latter part of the 2020s and boost the economy during the next government’s term of office. The first investment decisions could be made as early as 2028-2029, and offshore wind hubs must be ready to begin operating around 2030.

Pori and Raahe form a unique port pair for offshore wind development

It is sensible and economically efficient to direct offshore wind investment support towards the ports or port pair already best equipped to develop heavy infrastructure. This is the only way to succeed in international competition. Not all ports have the location or existing infrastructure needed to support offshore wind hubs. Prioritising selected ports is in the interests of Finland as a whole, with benefits for economic growth, employment, tax revenue, regional vitality, electricity prices and national security. In Europe, similar approaches to prioritising ports have been adopted in France, for example. Public support for prioritised port pairs can get port investment under way and establish a coordinated network linking industry and ports. Similar examples can also be found in Germany, Denmark and the Netherlands.

The ports of Pori and Raahe offer the best conditions for building world-class offshore wind farms, thanks to their locations, existing port areas and infrastructure, committed partner companies, expertise and plans already in place. Pori-based Sata Shipbuilding’s offshore wind foundations, designed for the ice conditions at Tahkoluoto, and Raahe’s steel and port ecosystem together provide a natural environment for research, development and innovation (RDI) and demonstration activities aimed at commercialising offshore wind expertise. Built by Suomen Hyötytuuli, the world’s first offshore wind farm in waters that freeze over has been operating at Tahkoluoto, Pori, since 2017. It comprises 11 offshore wind turbines with a total capacity of approximately 45 MW and annual generation of approximately 165 GWh.

The Government Programme needs a clear policy direction to lay the foundations for an industrial offshore wind value chain in Finland

1. Select the Pori and Raahe port pair for a pilot scheme for offshore wind farms

At least two complementary, internationally competitive offshore wind hubs will be built in Finland by 2030, forming the foundation of the domestic industrial value chain for offshore wind. Pori and Raahe will serve as the first pilot pair.

2. Establish an investment programme for offshore wind port infrastructure in Finland

A multi-year investment programme for offshore wind port infrastructure will be established in Finland, combining state and EU funding with financing from ports, industrial users and private investors. Support must be directed towards shared infrastructure on the basis of transparent criteria and require sufficient private co-financing. The purpose is to create the conditions for an industrial market to develop, rather than provide support to a single company.

3. A national skills programme for offshore wind

Finland needs an offshore wind skills programme that brings together vocational education and training, higher education institutions, continuous learning and company training activities. The programme will build on existing expertise in shipbuilding, the metal and electrical industries, construction and logistics.

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