Industrial CHP
Industrial CHP refers to combined heat and power plants operating at industrial sites. The industrial plant (e.g. a paper mill) uses the heat for its process and feeds electricity into the grid.
In the Finnish power system, industrial CHP typically produces 700–1 200 MW, or about 7–12 % of total consumption. The most common are integrated plants in the forest industry (paper and pulp) where lignin, bark and other process waste serves as fuel.
Industrial CHP output is relatively steady because industrial processes run around the clock. It is thus baseload production that complements nuclear. The variability of wind and solar is not balanced with CHP — its output is set by the process, not the electricity market.
CHP plants are a significant part of Finland's electricity self-sufficiency, and their retirement following mill closures has raised concerns about electricity availability in winter months.
What is CHP (combined heat and power)?
CHP = Combined Heat and Power. In a traditional plant about a third of fuel energy becomes electricity, the rest is waste heat. In a CHP plant the waste heat is captured and used — e.g. as process heat for a paper mill or district heating. Overall efficiency rises from 40 % to as high as 85–90 %.
Industrial CHP differs from district-heat CHP (more common in cities) in that the heat goes directly into the industrial process, not into the city district heating network.
Industrial CHP fuels in Finland
The forest industry (paper and pulp) is the largest industrial CHP sector. Fuels:
Black liquor — a pulp cooking by-product, lignin and organics. Returned to the process after drying.
Bark and chips — wood processing residues.
Natural gas and oil — used earlier for peak loads, now only in emergencies.
Most fuels are renewable — industrial CHP is classified about 50–60 % renewable as an annual average.
Industrial CHP and your bill
Industrial CHP production is baseload, running year-round. It supports Finland's electricity self-sufficiency — without it import needs would rise 10–15 %.
For the spot price, industrial CHP is neutral: output is driven by the industrial process, not the market price. On windy periods CHP output does not drop even if the spot price goes negative.
Frequently asked questions
What is the difference between industrial CHP and district-heat CHP?
In industrial CHP the heat goes into an industrial process (e.g. a paper mill). In district-heat CHP the heat goes into a city district heating network (e.g. Helen Vuosaari, Fortum Suomenoja).
How much electricity does industrial CHP produce in Finland?
Typically 700–1 200 MW, or about 7–12 % of consumption. Output is relatively steady — industrial processes run around the clock.
Is industrial CHP renewable energy?
Partly. Forest-industry CHP uses mostly renewable fuels (black liquor, bark), but some fuel can be natural gas. Industrial CHP is usually classified as about 50–60 % renewable.
See also
- Nuclear power — Nuclear power is electricity from uranium fission. Finland has nuclear at Loviisa (2 units) and Olkiluoto (3 units)…
- Wind power — Wind power is electricity generated by wind turbines. Finland's largest renewable source and a strong driver of the…
- Renewable energy — Renewable energy is electricity production based on continuous natural flows: wind, hydro, solar and biomass. In the Finnish…