Seppo AholaArctic AdvisorKemi Digipolis Ltd

”CO-OPERATION MODELS FOR CIRCULAR ECONOMY”

New business models for smart regionsRohevik, September 21st, 2017

DIGIPOLIS - KEMI TECHNOLOGY PARK

•Kemin Digipolis Oy, established in 1993•Owned by the cities of Kemi & Tornio, (the city of Kemi is main owner)

the University of Oulu and municipalities of Simo, Keminmaa and Tervola • 50 companies, 500 employees in technology park – Network of more than 160

industrial service businesses in Lapland, more elsewhere•Development actions and services:

•Team 10 persons + service providers•Innovative environment especially for industrial service businesses•Start-Up, Business Incubation, Business Growth, Invest In Services•21 on-going development projects, 584 companies and organisations•New openings:

2008-2016 Expertise on Arctic conditions & Industry, novel wood constructions: CLT development platform

2012- Ecosystem of the Arctic Industry - Innovation Platform2014- Arctic Industry and Circular Economy Cluster management2016- Digipolis chosen as key actor in national circular economy roadmap and

implementation of the key project activities2017- Establishment of Centre for industrial circular economy

MAIN INDUSTRY SITES IN KEMI-TORNIO REGION

Metsä Board and Metsä Fibre Kemi mills• World’s northernmost linerboard production site• World’s northernmost pulp mill

Outokumpu Chrome Kemi mine• Europe’s biggest chromium mine

Outokumpu Tornio stainless steel mill and ferrochrome smelter• Outokumpu's site in Tornio is the most integrated stainless steel mill in the world combining chromium mine,

ferrochrome works and stainless steel mill

Stora Enso Veitsiluoto Mill in Kemi• World’s 2nd northernmost pulp mill• World's northernmost paper producer with three paper machines, and 4th biggest paper production integrate in

Europe• Oldest sawmill in production in Northern Finland

Kaidi Biorefinery investment plan in Kemi• Kaidi is planning a globally unique biofuelrefinery to Kemi in 2019

Manga LNG liquid natural gas terminal in Tornio 2018

Kemi

200 km

NATURAL RESOURCES REFINING

• Global Markets• Good Connections• Arctic Solutions• Cleantech Solutions• 5 Bio Refineries• 32 Sawmills• 16 Mines• 5 Metal Refineries• 2 Aluminium Smelters• 1 LNG Refinery• 2 Chemical Plants

Kemi-Tornio’s circular economy innovation platform

Ases

ECOSYSTEM OF THE ARCTIC INDUSTRY

• Worlds northernmost hub of bio-, mining -, metal industry and services

• 1,7 Mt of by-products and residues (withoutwaste rock)

• Responsible for 80% of Lapland’s industrial production, with over 5 billion EUR of exports annually (7-8 % of the total export value of Finland)

• Industrial symbiosis estimated at 700 million EUR annually

Kaidi bio-refinery

projectIkea wind

farm

project

Pohjaset

Tapojärvi mine

operations

CLT development

platform

SMA-Mineral Digipolis

Modern Cluster of

Arctic Industry

Sustainable utilisation of arctic natural resources

7Sitra • 21.9.2016 • Kari Herlevi •

FEASIBILITY STUDY

2016

NORDIC COUNCIL OF MINISTERS’ SUSTAINABLE NORDIC BIOECONOMY CASE IN CIRCULATE CATEGORY

The Kemi-Tornio region in northern

Finland has established an Arctic

industry and circular economy cluster

to enhance industrial symbiosis and

strengthen the development of a

holistic bioeconomy in the region. Via

extensive analysis of the by-products

and residue streams from companies

in the region, value-added products

are now being produced by combining

and rethinking several by-product and

residue streams. Examples include

silvicultural thinning practices,

bioenergy from forest residues with

the possibility for future for largescale

biofuel production, as well as two

plants that enable recovery of metals

from slags from the steel and

ferrochrome production in the region.

1 . 7 m i l l i o n

FINNISH NATIONAL INDUSTRIAL CIRCULAR ECONOMY CENTRE IN KEMI• Focus is in the circular economy and the bioeconomy• In partnership with the Finnish Innovation Fund Sitra, City of Kemi, Digipolis – Kemi Technology Park

and Lapland University of Applied Sciences• First industrial circular economy centre in Finland with national level mandate• Virtual network of industry, university and development experts

Aims of the centre:National level• To promote education and competence in the industrial circular economy across the whole of Finland• To spread operating models of the Kemi region’s industrial circular economy throughout Finland• To boost the successful circular economy development work that Digipolis – Kemi Technology Park has

carried out and to generate vitality for the city of Kemi and for the whole of FinlandCity of Kemi and Lapland level• To create new investments and jobs – Industry modernization• Help investments to be more sustainable and efficient• Lapland is Europe’s model region for the sustainability: modern cluster development in the sustainable

refinement of natural resources• Establishing common systematic operational culture Activation and cooperation of authorities,

municipalities, industry, industrial services etc.

BIO AND CIRCULAR ECONOMY CASES

• Kaidi biorefinery factory project (900 million €) and surrounding ecosystem

• Iron ore smelter (300-500 million €)

• Industrial symbiosis recycling center and facilities (50-200 M€); 1,7 million tonnes of by-products from regions industry annually

• Ship recycling facility (65 million €)

• Cross laminated timber (CLT) production facility integrated with sawmill (20 million €)

• Bio coke production facility (12 million €)

• Seafood refinery (12 million €)

• Novel biogas plant with circular economy solution (10 million €)

• Chemicals terminal (5 million €)

• Berry pulp production facility (4 million €)

• Finding /developing and testing of resource efficient biomass drying technology and supply chainfrom forest to biorefinery process

SUSTAINABILITY ASSESSMENT TOOL - SAT

SATQuick and dirty method

ENVIRONMENTAL INDICATORS

AIR EMISSIONS

WATER EFFLUENTS

SOLID RESIDUES

PROCESS AND PRODUCTION EFFICIENCY

TRANSPORT

GREENHOUSE GAS EMISSIONS

MANAGEMENT AND REPORTING

LEGAL ASPECTS

ECONOMIC INDICATORS (UPDATING IN PROGRESS)

LEADERSHIP & STRATEGY

MANAGEMENT & REPORTINGECONOMIC

PERFORMANCE & VALUE GENERATION AND

DISTRIBUTIONINVESTMENTS & MARKETS

CIRCULAR ECONOMY & RESOURCES

SUPPLY CHAIN

RISKS

RESEARCH & DEVELOPMENT

LEGAL ASPECTS

SOCIAL INDICATORS

LOCATION

SUPPLY CHAIN

SOCIAL INNOVATIONS

LABOUR PRACTICES

TRAINING AND SKILLS

REPORTING

HEALTH AND SAFETY

LEGAL ASPECTS

+ Covers Regional Economic Dimension (RED) by VTT

ENVIRONMENTAL INNOVATIONS

LEADERSHIP AND STRATEGYECONOMIC INNOVATIONS &

COMPETITIVENESS

• At mill and industry integrate level:

• to evaluate the single investment and/or mill site operation chain sustainability, including supply chain management’s sustainability

• At corporate level:

• to evaluate sustainability of company’s mill sites (helps when investment moneyis shared)

• to give valuable information for greenfield mill investment

• to give valuable information when you want to buy the existing factory

SAT AND IT’S USE Case 2. Need for additional wastewater treatment unit

Environmental authority requirement

BIOREFINERY BOOSTS NEW ECOSYSTEM

1. Biofuel refinery opens up new raw material market• Currently more energy wood is harvested than used• Biorefinery can also use other forest industry by-products

2. Biorefinery would improve resource efficiency and create synergies• Energy wood is residue from forest thinnings and harvesting – Optimal use of woody biomasses• Synergies with current biomass logistics, terminals and production sites

3. Biorefinery would create new ecosystem• Unique production site refining certified and renewable natural resources• High value addition from excess natural resources: over 8 million m3 more wood grows annually that

is used in Lapland• Industry modernisation and sustainability

4. New opportunities for eco-innovative service companies• Possibilities for novel harvesting, logistics, terminal and service solutions• Cross sectoral value chains?

5. Indirect effects on regional economy

BIOREFINERY AND INNOVATION

Digitalisation – Industry 4.0• Forest information database and management system Implementation for the forestry ecosystem• E-trade system and life-cycle services for woody biomass land owners

New business and operational models• Totally new supply chain for energy wood: harvesting technologies, terminals, drying of raw materials,

logistics: containers and transport units, whole ecosystem around biorefinery (biomaterial utilisation and biodiesel refinery): suppliers and industrial symbiosis, integrated wood production units – bettercustomer perspective on product categories

Technology and R&D&I• New harvester models (Fixteri for example) and harvesting equipment• Demonstration plant – first of many: long term continuous R&D&I and resources – monitoring, R&D&I,

testing, piloting, scaling-up, manufacturing, commercialisation, internationalisation

Regional innovations and pilots

OKTOSLAG

INSULATION35 m

PUPIL’S PATH, KEMI

CIRCULAR ECONOMY INDUSTRIAL CLUSTER INNOVATION PILOT:CAIM - Circular Arctic Infrastructure Materials

1.1 – 31.12.2017

EUROPE’S FIRST INTELLIGENT BICYCLE AND WALK PATH USING INDUSTRIAL RESIDUES

Regional innovations and pilots

OKTOSLAG

INSULATION35 m

PUPIL’S PATH, KEMI

CIRCULAR ECONOMY INDUSTRIAL CLUSTER INNOVATION PILOT:CAIM - Circular Arctic Infrastructure Materials

1.1 – 31.12.2017

REAL TIME FROST MEASUREMENT&

OTHER INTELLIGENT TRANSPORT SYSTEM APPLICATIONS

EUROPE’S FIRST INTELLIGENT BICYCLE AND WALK PATH USING INDUSTRIAL RESIDUES

BALTIC SEA REGION COOPERATION

Pilot project proposals submitted to MA-network

• Funding through: ERDF MA-network for Baltic Sea Region• Policy instrument: Regional Smart Specialisation Strategies• Topic: Clean-tech

Clean-tech collaboration to enter new markets

1. Jointly entering new challenging markets

Clean-tech collaboration for feasibility studies, to test and verify solutions

2. Commercializing forest-based protein

3. Municipal operator symbiosis-circular economy

4. Increasing the share of renewable energy e-Mobility

Clean-tech collaboration for technology and knowledge transfer

5. Testbeds for testing and verifying new clean tech solutions

Zielona Chemia, Polen (West Pomorski Region)PAKRI Science and Industrial Park (Estonia)Kemin Digipolis Oy (Region of Lapland)Brandenburg Invest (Region Brandenburg)LITBIOMA (Lithuania)TURKU University of applied science (SouthWest Finland)Green Net Finland (Helsinki Uusimaa Region Finland)Innovation Centre Iceland (Iceland)Cleantech Latvia Cluster (Latvia)Merinova (Region Osterbothnia Finland)North Sweden Cleantech (Region Västerbotten Sweden)Sustainable Business Hub (Region Skåne Sweden)Lahti Development Center (Päijät-Häme Region Finland)

SMECIRCULAR ECONOMY

BUSINESS MODELS

CROSS-BORDERCROSS-SECTOR

REAL BUSINESS CASES

OPEN INNOVATION

”NEW INDUSTRY”

INDUSTRIAL SYMBIOSIS

CIR©LEAN 2018-2019 CHEMICAL INDUSTRY

MINING INDUSTRY

FORESTRY; PULP, PAPER,

BOARD, TIMBER

METAL INDUSTRY

FISHING INDUSTRY

WASTE INDUSTRY

R&D

EDUCATORS

AUTHORITIES

BUSINESS DEVELOPERS

FINANCIERS

LIME CALCITE REUSE METAL SEPARATION

RUBBER OIL POULTRY FEATHER INSULATION

PLASTICS OIL SALMON PROCESSING

SLUDGE METAL SEPARATION SLAG INSULATION

BIOMASS REUSEFISH FEED PROTEIN

Jaana Moona Design ja Studio Imagiar

Lappset Group

Taisto Saari / Stora Enso

Lappset Group

Interested in cooperation?

Please contact:

Seppo Ahola, Mr.

Arctic Advisor

Digipolis - Kemi Technology Park

Tietokatu 6, FI-94600, Kemi

Tel. +358 400 249620

Seppo.ahola@digipolis.fi

www.digipolis.fi

THANK YOU!

Outokumpu