Consumables
Metso and Wärtsilä form joint venture for renewable energy solutions
Friday 26. September 2008 - Metso and Wärtsilä have signed a contract to form a joint venture combining Metsos Heat & Power business (a business unit within Metso Power) and Wärtsiläs Biopower business.
The new joint venture will be one of Europes leading providers of medium- and small-scale power and heating plants, focusing on renewable fuel solutions. The closing of the transaction will require the relevant regulatory approvals, which are expected during the coming months.
Metso will own 60 percent and Wärtsilä 40 percent of the joint venture. It is estimated that in 2008 the consolidated annual pro forma net sales of the joint venture would be approximately EUR 130 million and the number of employees approximately 200.
Through this joint venture, Metso Power, a leading boiler technology company, and Wärtsilä Biopower, a leading modularized power plant supplier, will combine their resources and expertise in sustainable energy production. The technology offerings of the two businesses ? Wärtsiläs grate and Metsos fluidized bed combustion technologies ? are complementary and enable solution offerings for a wide range of fuels in power plants.
“The general market outlook for the energy industry and especially for renewable energy production is promising. With Metso and Wärtsilä now joining forces, we will have enhanced capabilities to build and develop new technologies and solutions,” says Lennart Ohlsson, President of Metso Power.
“Fuel flexibility will be an important competitive edge in the future, and the joint venture will be well positioned to meet this challenge. We expect that there will be a high demand for the products, services and expertise of the combined entity,” says Christoph Vitzthum, Group Vice President, Wärtsilä Power Plants.
The demand for power plants capable of running on renewable fuels has increased as a result of high energy prices and increased global energy consumption. The European Union target to increase the share of energy based on renewables to 20 percent of primary energy by 2020 is a major factor behind this joint venture.
Metsos Heat & Power business consists of Noviter Oy and VEÅ AB, both subsidiaries of Metso Power. The business unit employs approximately 100 people in Scandinavia, the Baltic countries and Russia. Metso Power designs and manufactures power generation and chemical recovery systems for energy producers and the pulp and paper industry globally.
Wärtsilä Biopower, a part of Wärtsilä Power Plants, supplies and manufactures biomass-fueled combined heat and power plants and heating plants. The company employs approximately 100 people in Finland. Wärtsiläs engine-based power plant business is not affected by this joint venture and continues to offer a broad range of fuel-flexible power solutions.