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Junnikkala Oy continues its agreement with Loimua

 Wednesday, December 20, 2023

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Junnikkala Oy continues its agreement with Loimua

Junnikkala Oy and Loimua Oy have agreed on a long-term cooperation regarding the energy production and development of the Junnikkala Kalajoki sawmill. The agreement is a continuation of the cooperation between Junnikkala and Loimua at Junnikkala’s Oulaiten sawmill. According to the cooperation agreement, Loimua acquires the production infrastructure related to the energy production of the Kalajoki sawmill in Junnikkala and the production of district heat. In the future, Loimua will be responsible for heat production at the Kalajoki sawmill and, in addition to Junnikkala, it will also supply heat to the Kalajoki Lämmö district heating network.

In the future, Loimua will produce heat for the Kalajoki sawmill on a turnkey basis. At the same time, Kalajoki Lämmö becomes a significant customer for Loimua, as the heating plants located in the area of the sawmill produce a significant part of the district heating needs of Kalajoki Lämmö’s customers.

The common goal of Loimua and Junnikkala is to develop the energy production of heating plants with automation systems and new optimization tools, the purpose of which is to make it possible to improve energy efficiency and reduce production costs.

The partnership between Junnikkala and Loimua is seen as a way to develop even more cost-effective heat production for the needs of Kalajoki sawmill and Kalajoki Lämmö, which enables competitive district heating prices for Kalajoki in the future as well.

Junnikkala supplies biofuels to Kalajoki’s heating plants

Junnikkala and Loimua have also agreed on fuel procurement cooperation, according to which Junnikkala will supply the biofuels used in Loimua’s Kalajoki heating plants. Biofuels are by-products generated in Junnikkala’s wood procurement and sawing operations, the utilisation of which enables the production of almost carbon-neutral district heat and thus also supports Finland’s climate goals.

Junnikkala and Loimua deepen their partnership in energy production

The partnership between Junnikkala and Loimua dates back to 2021, when the parties agreed to cooperate on the development of the heat production of Junnikkala’s Oulaiten sawmill and the supply of biofuels and the production of district heat. The cooperation between the parties has been successful, and Junnikkala sees Loimua as an excellent partner also in the Kalajoki sawmill’s energy production outsourcing project.

”Loimua has been a very good partner for us at Oulainen sawmill, and we have been satisfied with our cooperation. We strongly believe that, together with Loimua, we will be able to make Kalajoki’s energy production even more competitive in the long term. We are looking forward to deepening our cooperation and thus focusing better on our core business.” comments Kalle Junnikkala, CEO of the family-owned Junnikkala.

Emphasising on the importance of the investment, Henrik Vasama, Business Director responsible for industrial energy services at Loimua, ”The purchase of the energy production of Junnikkala’s Kalajoki sawmill is an important investment for us, which ensures the continuity and development of the heat production of both the sawmill and Kalajoki Lämmö. The cooperation with Junnikkala has worked very well, and we are happy that the customer appreciates our expertise and that our cooperation will now become even closer. Our goal is completely carbon-neutral heat production, from which Junnikkala’s sawmill and Kalajoki’s district heat users will also benefit.’

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