Press release March 7,2024

One of the key objectives of Raisio's sustainability programme has been to make its own production carbon-neutral by the end of 2023. This important objective was achieved at the end of the year, resulting in all of our factories running on carbon-neutral energy from the beginning of December 2023 onwards. The solutions were found by developing operations and processes, together with our partners.

One of the key objectives of our responsibility programme is to make our own production carbon-neutral. Our goal has therefore been to find carbon-neutral solutions for our own production by the end of 2023. The guiding idea has been to change operations and processes in such a way that the energy needs of production are actually met by using renewable energy. The solutions were found, and there was no need to resort to carbon offsets.

The last missing piece was the Kauhava factory, which was acquired by the Raisio Group in spring 2021. The Kauhava factory's transition also required the cooperation of several parties, as the steam used in its production is generated by the facility itself, while the heat for the property is provided by a district heating company. Kauhava's electricity needs will be covered by the Raisio Group's joint electricity contract, which uses carbon-neutral electricity.

The Kauhava factory switched to biofuel for the steam needed in production in March 2023. The carbon-neutral solution for the property's heat production was found in cooperation with our partners. The district heating is provided by Kauhavan Kaukolämpö Oy, but the heating energy solutions for the premises are in the hands of Kauhavan Yrityskiinteistöt Oy, which owns the buildings. Both parties responded positively to our request and set about organising a carbon-neutral district heating alternative. A carbon-neutral solution for the factory's heat production was found when Kauhavan Kaukolämpö Oy signed up its heat production to the energy guarantee of origin scheme. As a result, we can be sure that the Kauhava factory site is heated with heat produced from renewable wood chips.

The inclusion of district heat in the guarantee of origin scheme was important for Raisio, as we are committed to the use of carbon-neutral energy. Since Russia launched its invasion of Ukraine in 2022, district heating companies have faced difficulties in sourcing energy and at times may have had to rely on peat or fossil fuels. Raisio wanted to avoid this, so it set out to find a solution together with experts from Kauhavan Kaukolämpö Oy and Kauhavan Yrityskiinteistöt Oy.

"The request for carbon-neutral district heating came from us at Raisio. We discussed possible solutions together with our partners. The district heating was already largely produced with bio-based energy, but did not fully meet our criteria. It was also the last missing piece in our otherwise carbon-neutral energy mix. This district heating project is an excellent example of companies' ability to make a difference; the solutions are there if you work together to find them. Over the years, we have found carbon-neutral solutions for three different production locations and nine different energy sources. Bio-based energy solutions have also secured our cost-effective energy supply during the energy crisis," says Raisio ESG Manager Katri Järvinen-Wilén.

Kauhavan Kaukolämpö Oy's inclusion in the guarantee of origin scheme allows companies in the area to use heat certified as renewable in their buildings and production.

"This will allow us to be involved in creating better operating conditions for companies in the Kauhava area. Kauhavan Kaukolämpö Oy's heat production has long been largely based on renewable energy sources and the recovery of waste heat. Therefore, the certification of the production as renewable did not require any investment, and we are able to offer heat certified as renewable at a very affordable price. The price difference between conventional district heat and heat certified as renewable is only EUR0.25/MWh, which covers the registration fees and costs of certification," says Juho Lahtinen, Managing Director of Kauhavan Kaukolämpö Oy.

Kauhavan Kaukolämpö Oy had already considered joining the register of guarantees of origin before, but the clear message from Raisio and Kauhavan Yrityskiinteistöt Oy was crucial in making the decision.

"Our other customers have also been interested in heat certified as renewable, and certified district heating will also help our other customers meet their CO2 emission targets."

For Kauhavan Yrityskiinteistöt Oy, Raisio's initiative served as an opening for the transition to fossil-free heating energy for all properties.

"This will now benefit all of our tenants and help them meet their responsibility targets. This is also a clear positive environmental message for companies looking for new premises. Thanks to Raisio for showing us the way," says Hannu Ristaniemi, Managing Director of Kauhavan Yrityskiinteistöt Oy.

Nokia and Raisionkaari found their solutions earlier

The Nokia mill and the Raisionkaari area with its production facilities had already switched to carbon-neutral energy earlier.

In summer 2021, a heating plant was commissioned at the Nokia mill, which utilises oat hulls, a side stream of the mill's processes, to produce heat and steam. Implemented with Adven Oy, the heating plant project has proven to be a good way to ensure not only a responsible but also a cost-effective energy supply. With the commissioning of the heating plant, Raisio's own production facilities are no longer dependent on natural gas. The Nokia mill's heating plant also produces heat beyond our own needs: the surplus heat from the mill is utilised in Leppäkosken Lämpö's district heating network in Nokia. The old heating plant at the Nokia mill site remained in the area as a backup and peak energy plant and started using biogas as fuel in spring 2022. If biogas were not available, the backup plant could also use natural gas as its energy source.

The Raisionkaari industrial area has already been using carbon-neutral energy since 2018, with heat and steam from the area's own bioenergy plant.

Both the Nokia mill's and Kauhava factory's solutions are good examples of the cooperation needed to tackle climate change. The Nokia mill's heating plant is a joint project with Adven Oy, and the solutions of the Kauhava factory were created in cooperation with Kauhavan Kaukolämpö Oy.

What is the guarantee of origin scheme?
 

The guarantee of origin scheme for renewable energy is a mechanism to ensure that energy buyers can actually buy and use renewably sourced energy - electricity, gas and hydrogen, or heating and cooling. The scheme ensures that a company producing energy from multiple sources cannot sell the renewable energy it produces more than once. The Energy Authority is responsible for maintaining and supervising the register of guarantees of origin for heating.

[image]

Photo: Raisio Group / Kuvatehdas - Roni Lehti

Inquiries:

Katri Järvinen-Wilén, ESG Manager, Raisio, tel. +358 40776 4314

Hannu Ristaniemi, Managing Director, Kauhavan Yrityskiinteistöt Oy, tel. +35850304 4665

Juho Lahtinen, Managing Director, Kauhavan Kaukolämpö Oy, tel. +35840715 1957

Raisio plc
At Raisio, we make food from the heart, with the aim of bringing health to ourselves and the Earth. We keep creating better plant-based and heart-healthy products so that eating healthily and within the Earth's ecological capacity can be a pleasure. Our strong brands, such as Benecol®, Härkis® and Elovena®, turn our ambitions into reality. Through our responsibility work, we make the hard choices for consumers, so that they can choose Raisio products with confidence. We have around 350 healthy food colleagues in seven countries and export to more than 40 markets around the world. Raisio's shares are listed on Nasdaq Helsinki Ltd. In 2023, the Group's comparable net sales for continuing operations were EUR 219.5 million and the comparable EBIT was EUR 22.7 million. www.raisio.com

Kauhavan Kaukolämpö Oy
Kauhavan Kaukolämpö Oy operates in Kauhava, Alahärmä, Kortesjärvi and Ylihärmä. We generate heating using almost entirely domestic fuels. Our company's operations and sales have grown rapidly in the past few years. We focus on modern heating production that emphasises energy efficiency, eco-friendliness and local energy. Kauhavan Kaukolämpö Oy purchases approximately 80% of its fuels from the City of Kauhava area. Domestic fuels make up over 98% of our production. Kauhavan Kaukolämpö Oy is an enterprise owned 100% by the City of Kauhava.

Kauhavan Yrityskiinteistöt Oy

Kauhavan Yrityskiinteistöt Oy manages and leases industrial premises in the Kauhava economic area. Special attention is paid to the functionality of the buildings, the premises are always planned together with the tenant. Kauhavan Yrityskiinteistöt Oy is a subsidiary owned by the city of Kauhava. The company owns premises of 29,800 m2. In 2023, the turnover was 2.4 million euros and the result for the financial year was 33 thousand euros.