The people of Ostrobothnia have a lot to be proud of. Home to the Nordic Energy Capital, Vaasa’s expertise in the energy sector has propelled the city onto the global stage, producing innovations such as the world’s most environmentally friendly roll-on/roll-off passenger ferry. That energy expertise is now being shared from day-care onwards, helping the next generation to keep Vaasa at the forefront of the energy transition.
The atmosphere in Vaasa, a coastal city in Ostrobothnia, is electronic. The city has more than 180 energy sector companies with a combined turnover of EUR 6 billion, one quarter of the Finnish energy sector workforce, and the largest number of green patents in the Nordic countries.
As the saying goes, ‘you have to know the past to understand the present’, and the story of the Nordic Energy Capital begins on the other side of the Atlantic.
In Henry Ford’s footsteps
Trade and shipping have always been part of Vaasa’s bedrock. Influences have come and have been taken from foreign countries. At the end of the 19th century, the Vaasa-based Wickström brothers left Vaasa for America. On one of their trips, they met a certain Mr Henry Ford, famous for his cars.
There were no cars in Finland at the time, but there were plenty of boats in Vaasa. Therefore, inspired by Mr Ford, the brothers founded Wickström-Veljesten Moottoritehdas Oy, which started manufacturing boat engines. Today, in its footprints, and partly in the same place in Vaasa, is one of Finland’s largest and internationally most successful companies, Wärtsilä. It manufactures engines for large ships and other energy solutions, among other things.
Another major actor in the city’s history is Strömberg, currently known as ABB. In the 1940s, it was transferred from Pitäjänmäki, Helsinki, to Vaasa to escape from the war. After World War II, Strömberg played a significant role in electrifying the whole of Finland. Currently, it is doing the same on a global scale.
“We’re doing unbelievably well”
Five years ago, there were 160 energy sector companies in Vaasa, and now there are twenty more. In total, the companies in the sector have increased turnover by EUR 1 billion over the same period. By the end of this decade, additional investments in the field are expected to amount to nearly EUR 2 billion.
“When large actors invest, smaller ones also have the courage to do the same. We are well known for riding the crest of a wave of the energy transition,” says Tomas Häyry, Mayor of Vaasa.
Cooperation between higher education institutions and companies in the region is strong. Vaasa companies account for 90% of all research and development activities in the Finnish energy sector. In practice, it means everything from sustainable energy production and smart grids to more energy-efficient solutions for the maritime industry. Wärtsilä is also expanding its R&D centre in Vaasa within the next few years.
Vaasa has created its own learning path in the energy sector, from day-care centres to higher education institutions. The aim is to awaken children’s interest in science and mathematics at an early age and to foster their future aspirations to continue these activities.
“If ten years ago, engineers at Wärtsilä gate had been asked what they were making, the answer would have been engines and power stations. Now, they would be talking about decarbonisation. You can see the young experts’ eyes shine with enthusiasm as they know that they are building a better tomorrow for future generations,” Häyry says.
So far, Vaasa has not suffered from labour shortage. The energy sector currently employs 13 000 people. Most of the experts come from abroad, which is reflected in the doubling of the city’s share of the international population.
“We are often post-cyclical in Vaasa. When things are going well elsewhere in Finland, it is difficult for us and vice versa. At the moment, we’re doing unbelievably well,” Häyry says.
However, the stagnant economic situation in the rest of society means that public investments are not made at the rate that Vaasa and the companies operating there would wish.
“When the industry invests, it also requires public investments in infrastructure and ports, for example. In other words, the development of public finances does not currently support us, but so far it has not slowed down our growth,” Häyry says.
The port opens a low-emission corridor to the world
Speaking of ports: having its own port remains a lifeline for Vaasa and the companies operating there. The city has developed the port’s operations and invested around EUR 60 million in extending it in recent years. The piers have been expanded, and the entrance fairways widened so that larger vessels can reach the port. A deeper channel is also planned.
Vaasa’s pride is the roll-on/roll-off passenger ferry Aurora Botnia, operating between Vaasa and Umeå. The ferry crystallises the competence and cooperation of the entire energy capital. The ferry, introduced in 2021, is the world’s lowest-emission vessel and runs partly on electric batteries.
The vessel was commissioned by Wasaline, a shipping company founded jointly by the cities of Vaasa and Umeå. Wasaline has since been sold to the Swedish Stena Line, but Aurora Botnia remains the property of the two cities. Wärtsilä was naturally involved in developing its low-emission engines and still owns one of them.
“This is a unique situation for both us and Wärtsilä that they can develop their engines and activities on board a vessel operating 24/7. At the same time, it has given us an increasingly efficient ship that produces fewer emissions and consumes less fuel,” Häyry points out.
Danfoss, a manufacturer of variable frequency drives, was also involved in the development work. This gave them an opportunity to use the technology from its new iC7 frequency converter product family in a maritime environment for the first time. Thanks to the variable frequency drives, the ferry became more energy efficient, and Danfoss gained a new selling point.
Variable frequency drives are needed in practically all electrical equipment, from lifts to fans and lights, to transform the current to suit the equipment and control motor output. At the same time, it saves energy by operating the engine at a suitable power level for each situation. There’s now a saying in Vaasa: ‘we’re conquering the world one variable frequency drive at a time’.
Aurora Botnia has more than 100 small electric motors. And all of them have a variable frequency drive.
“Energy expertise originating from Vaasa can be found in every corner of the world. No matter in which country of the world you are when switching on the lights, there’s always technology from Vaasa involved,” Häyry says.
More logistics and smart regulation
In other words, for the energy cluster to work, it requires good logistics connections to the world, both for people and products. It is therefore important for the Nordic Energy Capital to safeguard and develop all modes of transport.
“In the Vaasa region, we have excellent starting points for functional logistics both at the national and international level – on land, at sea and in the air,” says logistics expert Anna Måtts-Fransén from a Vaasa region development company called VASEK.
In Vaasa, within a 10-kilometre radius, you have a port with a daily shipping service to Umeå, an international airport, a railway and major roads. The latter includes Highway 8, which runs along the Finnish coast, and Highway 3/European route E12, which passes through Sweden to Norway.
“Logistics must always be considered on a large scale and across borders. This is exactly what we have been doing for a long time, both in terms of modes of transport and land borders. The starting point is reaching the other Nordic countries, and from there we are heading further to other parts of the world. We want to support the main arteries running in south-north direction while also strengthening east-west connections from Finland all the way to Norwegian ports,” Måtts-Fransén continues.
Combining different modes of transport can also reduce emissions. A good example of this is the shipping route to Umeå and the further rail connections from there to Europe. The green and sustainable route is a strong asset for the entire Vaasa region and its logistics system.
The city leaders have an ambitious message for the government. Häyry hopes, for example, that the emissions trading scheme will be expanded beyond its current level and that wise regulation will be imposed to promote the clean transition.
“When emission restrictions were set for shipping a while back, many people were horrified and suspected that the entire shipping industry would die. In Vaasa, on the other hand, we started considering different options and developed the ship with the lowest emissions in the world,” Häyry says.
If regulation increases in the future, the hard-working people of Vaasa may come up with even more solutions to revolutionise energy efficiency.
Vaasa is part of the InnoCities network. The focus of development in the Vaasa ecosystem is on smart and sustainable energy systems.