On November 13, 2025, representatives from Alholmen Industrial Park and the City of Jakobstad gathered for an After Work event at Alholmens Kraft (AK). The evening offered networking and socializing, along with an opportunity to learn more about AK’s operations.
About Alholmens Kraft
Alholmens Kraft plays a key role in energy supply for both industry and consumers. The plant produces electricity, process steam, and district heating. Process steam is delivered to UPM and Billerud mills, while district heating is distributed through Herrfors’ network in Jakobstad. Electricity is supplied via the owners – Herrfors, Pohjolan Voima, and UPM – and fed into Finland’s national grid operated by Fingrid.
During our visit, we enjoyed a comprehensive tour covering everything from fuel handling and storage to fuel feeding systems, boilers, turbines, distribution solutions, and monitoring.
The AK2 CFB boiler (circulating fluidized bed) is impressive, with a thermal capacity of 550 MWth. The boiler’s furnace measures 8.5 x 24 meters and stands 40 meters high. The turbine concept, consisting of three turbine houses and advanced preheating systems, enables simultaneous production of electricity, process steam, and heat.
Fuels of the Future
Alholmens Kraft already relies primarily on biofuels. The share of peat is steadily decreasing and accounted for about 15% of total fuel use in 2024. Peat still plays a role in supply security, although its use is declining rapidly due to stricter taxation and higher emission fees. Coal is now used only as a backup fuel in case of disruptions, and its share was less than 3% in 2024. From 2029, coal will be completely banned in Finland’s energy sector. The political goal is to halve peat use by 2030, but AK’s transition has progressed even faster.
Flexible Production Based on Electricity Prices
One interesting insight we gained was how electricity market volatility has changed AK’s operating strategy. When electricity prices are high, the plant runs at full capacity to maximize power generation and feed energy into the grid. When prices are low, electricity production is not profitable, and the focus shifts to supplying process steam and district heating. AK’s operations team and process controllers have mastered the ability to ramp production up and down quickly and efficiently. This flexibility allows AK to adapt to market fluctuations while maintaining supply security.
Thank you to Alholmens Kraft for the hospitality and a great After Work!
This article was written with funding from the ACEP project.
