Alholmens Kraft plans plant closure, putting 19 jobs at risk

Alholmens Kraft plans to close its larger power plant in Pietarsaari, Ostrobothnia, after its profitability deteriorated, Yle reports. The closure could put up to 19 of the company’s 39 jobs at risk.

The energy company is starting change negotiations covering its entire workforce. It plans to shut down the AK2 plant next spring, after the heating season.

The closure plan is also linked to two 60 megawatt electric boilers being built at the power plant site. They are due to be completed next spring and will be used to produce district heating for the Pietarsaari region.

AK2 began operating in 2001. Alholmens Kraft has marketed it as the world’s largest biomass-fired power plant.

Peat played a major role in the plant’s early years, but its importance has declined. The plant’s main fuels have been bark and other forestry by-products. Peat has been used as a supplementary and backup fuel, accounting for 10 to 20 percent of fuel use. Coal has also been used as a supplementary and backup fuel when peat has been in short supply.

AK2 has an electricity output of 240 megawatts and a heat output of 160 megawatts.

“Low electricity market prices and changes in the energy markets have made production unprofitable. AK2 has operated mainly as an electricity producer,” chief executive Björn Åkerlund said.

Alholmens Kraft’s smaller AK1 unit focuses more on heat production. It has an electricity output of 25 megawatts and a heat output of 85 megawatts. Its boiler mainly burns bark and other forestry by-products.