September 7, 2022
News

Adven acquires the district heating business from the City of Huittinen

The City of Huittinen in Finland sells its majority share of the Huittisten Lämpö district heating company to Adven. In the current operating environment, ensuring the availability of heat is a priority and Adven’s ambition is to switch to fully renewable and recycled fuels.

The city center of Huittinen photographed from above in the summer.

The district heating working group within the City of Huittinen carefully considered which option would be best for the local district heating business, and the vitality of Huittinen, before they made their decision to sell. The decision is in line with the city’s strategy, which has resource wisdom as one of its focus areas.

“The result was clear: the energy company needs an owner with a deep understanding of energy production and technology. We have had good cooperation with Adven for a long time, and we felt that the company’s sales price was right”, says Viveka Lanne, Mayor of Huittinen.

Before the agreement was signed, Adven owned 17 percent of the company and the City of Huittinen 83 percent. In practice, the ownership was divided so that Adven owned the heating plant and the City of Huittinen owned the majority of the district heating network. The produced energy was sold by Adven at a wholesale price to Huittisten Lämpö, which sold it to end customers.

“Owning the entire company means that we can develop the operations further and invest to phase out the use of peat. Our priority in the current market situation is to ensure the availability of heat to all customers. In the medium term, we will switch to fully renewable and recycled fuels”, says Eero Pekkanen, VP M&A and Partnerships.

“It is important for us to keep Huittinen vibrant, and we want to keep district heating as the primary heating option in the area. The change of ownership will have no effect to the end customers”, Pekkanen continues.

Huittisten Lämpö Oy was founded in 1988. Its heating sales are about 32 gigawatt-hours per year. The heat sold by the company is primarily produced at the Adven bioenergy heating plant, which is located in the Huhkola industrial area. The heat distribution network is about 15 kilometers.

Additional information:

Adven: Eero Pekkanen, Vice President, M&A and Partnerships, eero.pekkanen@adven.com, +358 40 158 9200

Photo: City of Huittinen/Janni Heikkilä

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