District heating cooperation in Pargas and Kyrö
In September this year, Adven has acquired 100% of the shares in the district heating company Kyrön Kaukolämpö Oy located in the greater Turku region in Southwest Finland. Just recently in the same region, Adven has acquired 75% of the shares in the district heating company Paraisten Kaukolämpö Oy.
With these two acquisitions, Adven has strengthened its position in the region, where there are already several industrial partnership contracts, and the Eura district heating grid.
Sustainable district heating in the city of Pargas – Paraisten Kaukolämpö Oy
In its meeting on 18.12.2023, the Pargas City Council decided to sell 75% of Paraisten Kaukolämpö Oy to Adven Oy. The City of Pargas will retain 25% ownership.
Through joint ownership, the aim is to ensure high-quality and competitive district heating production and distribution in the Pargas area.
Paraisten Kaukolämpö Oy (also, Pargas Fjärrvärme Ab) was founded in 1982 and serves more than 180 properties in its district heating network. In 2022, it produced approximately 46,000 MWh of energy using boilers powered by wood chip fuel and industrial waste heat as its main heat sources.
The business operations of Paraisten Kaukolämpö Oy are ideally compatible with Adven’s industrial heat production services in the Turku region and at the same time further grow the company’s district heating business in Southwest Finland.
Adven’s goal through co-ownership is to develop heat production in the area and support the local regional economy and industrial cooperation in Pargas.
The reason why I have chosen to support the sale is that during the process I was convinced that this transaction is good for all parties, i.e. the consumers of district heating in Pargas, the current owner the City of Pargas and the buyer Adven Oy. At the same time, we ensure that the company remains competitive also in the future.Staffan ÅbergPargas City Board member
“Adven has several industrial customers and district heating networks in Southwest Finland, and the district heating business in Pargas will further expand our operations and capabilities in the region. Our goal in Pargas is to continue our strong cooperation with industry and produce stable, sustainable, and competitive heat for city residents and companies in the area. Cooperation with the City of Pargas will continue closely through co-ownership,” says Eero Pekkanen, VP M&A and Partnerships, at Adven.
Local biofuels in heat production – Kyrön Kaukolämpö Oy
Adven has acquired the share capital of Kyrön Kaukolämpö Oy on 29 September 2023 and will be responsible for the supply of district heating in the Kyrö settlement of Pöytyä, Finland. Kyrö’s district heating business is an excellent match with Adven’s industrial heat production services in the Turku region.
In Kyrö, district heating is produced by utilizing local recycled wood, forest chips and agricultural by-products, while minimizing the use of fossil fuels, such as light fuel oil.
Local cooperation will continue to be used extensively in fuel procurement. Customers include local apartment buildings, terraced houses, commercial premises, industrial premises and municipal premises such as a school center.
The district heating network is approximately 7 kilometers long.
Adven has proven to be an excellent successor to Kyrö’s district heating business. Close cooperation with Adven will continue also after the transaction, both between us and the heat customers in the area.Juha SalkoChairman of the Board of Kyrön Kaukolämpö
“Adven’s strong expertise and experience in the heat business enable the further development of Kyrön Kaukolämpö’s operations. For example, we will invest in the automation of the heating plant and connect the plant to our remote monitoring system, ensuring trouble-free heat production for customers. We will continue our cooperation with local fuel suppliers in the procurement of renewable fuel,” says Eero Pekkanen, VP M&A and Partnerships, at Adven.
For more information:
Eero Pekkanen, VP M&A and Partnerships, email@example.com, tel: +358 40 158 9200
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