Rabbalshede Kraft expands in Finland

Rabbalshede Kraft continues its international expansion. In November, it was announced that the company is taking the next step into the Finnish renewable energy market. This is through the acquisition of a 50 % stake in a project portfolio containing both solar and hybrid projects totaling up to 1400 MW. This is an important step in Rabbalshede Kraft's ambition to strengthen its presence in sustainable energy production in Northern Europe. 

Rabbalshede Kraft owns its facilities, both in Sweden and abroad, on a long-term basis and will be on site all the way from development to construction and operation. The Finnish company Vapo Terra, a subsidiary of Neova Oy, in which the Finnish state owns 50.1% is responsible for the sale of the project portfolio. 

• We always take a long-term position in our projects, and we will continue to do so regardless of where in the world we are established. We are pleased to take the next step into the Finnish market in this way and look forward to a long and good co-operation with Vapo Terra and the local landowners,’ says Peter Wesslau, CEO of Rabbalshede Kraft. 

All nine project areas included in the portfolio are located on land areas previously used for peat harvesting. Incineration of energy peat has historically been an important part of Finland's energy mix, but because of the high carbon dioxide emissions it produces, the Finnish government has set targets to reduce dependence on energy peat. Here, Neova, majority owned by the Finnish State, has an important role to play in helping to achieve the national target of halving peat use by 2030.  

• By increasing the production of wind and solar power, while terminating peat extraction early in three project areas and restoring land previously used for peat extraction, we are reducing carbon dioxide emissions and thus contributing to Finland's energy transition. We are very happy to do so,’ says Peter Wesslau, CEO of Rabbalshede Kraft. 

Rabbalshede Kraft and Vapo Terra will also hire independent climate and environmental experts to look at the unique conditions of each area and guide the companies on what type of restoration should be applied to each project.  

• We always work closely with landowners, municipalities, and businesses to create long-term, responsible solutions that benefit the climate. This is a new area for us, so it has been crucial to secure independent experts who will help us determine how to best take care of the land while increasing the amount of renewable energy,’ says Katharina Strömseng, Head of Sustainability at Rabbalshede Kraft.  

All projects are expected to be authorized within the next two to three years, the first ones within a few months. Procurement for the first projects will start already in 2024 with a view to a first investment decision already by the end of 2025. In order to have a strong local presence, Rabbalshede Kraft will soon start recruiting in Finland. 

• Finland is an attractive region for renewable energy development due to our strong electricity grid and large, suitable land areas. We have mapped the suitability of the land we own and reserved more than 10,000 hectares for wind and solar power. This agreement was the first of its kind for us, but certainly not the last,’ says Markus Tykkyläinen, Deputy CEO, Neova Oy. 

About Rabbalshede Kraft 

At Rabbalshede Kraft, we are helping to shape the energy of tomorrow. Our driving force is to develop and operate sustainable energy solutions together with partners and local actors. Through long-term ownership, we produce electricity that can be delivered when it is needed, where it is needed. In a market where we compete with global players, we offer unique flexibility and local understanding - all the way from development, construction, and operation.  

Rabbalshede Kraft is owned by TD Greystone Infrastructure Fund, part of TD Asset Management, the asset management division of a leading Canadian bank. 

About Vapo Terra 

Vapo Terra is a wholly owned subsidiary of Neova, responsible for the production and sale of energy pellets and other local fuels, wind and solar power projects and real estate development.