Finnish government’s peat subsidy plan faces sharp criticism from experts

The Finnish government’s proposed €18 million subsidy package for peat energy has drawn heavy criticism from researchers and industry specialists, who call the plan contradictory and impractical, Yle reports.

The funding, announced by Finance Minister Riikka Purra (Finns Party) on 22 April, aims to support energy companies’ investments—such as new gas turbines—but experts say peat is poorly suited for such technology. Turpeen, classified as a fossil fuel, would require costly gasification before use in turbines, a process described as “completely absurd” by Ahti Jaatinen-Värri, a gas turbine specialist at LUT University.

“This sounds like a totally ridiculous idea”
Jaatinen-Värri questioned the logic of converting peat into gas for turbine use, calling it neither simple nor sensible. Mika Järvinen, a professor of energy technology at Aalto University, also found the plan puzzling, noting that peat cannot be directly burned in gas turbines without an entirely new system.

Industry representatives echoed the skepticism. Hannu Salo of the Bioenergy Association dismissed the turbine proposal outright: “It doesn’t work in gas turbines at all.” Peat is already efficiently used in combined heat and power (CHP) plants, but gasification for turbines remains unviable.

Government defends “security of supply” goal
Minister of Economic Affairs Sakari Puisto (Finns Party) argued that the subsidies—up to €8 million for plant investments next year—are necessary to maintain peat demand and energy security. “If we don’t invest in facilities, the fuel itself is useless,” he stated. The plan also includes funding for bioenergy projects, despite peat’s classification as a fossil fuel.

Critics, including Sampo Soimakallio of the Finnish Climate Panel, called the framing of peat as a “biofuel” misleading. With peat’s fossil status raising costs, experts doubt the €8 million allocation will suffice for meaningful infrastructure upgrades.

The controversy underscores tensions between the government’s energy security goals and the practical challenges of peat use in modern power systems.