Robert Olander Marketing Director Technology Centre Merinova

1. Robert Olander Marketing Director Technology Centre Merinova

2. Finland, leader in energy technology? • The world’s energy markets are facing inevitable change. The need for energy is growing everywhere, but particularly so in the developing countries. • Renewable energy sources and new technologies are important topics of discussion. Markets are being clearly and increasingly regulated, not only by business economics, but also on political grounds • In 2007, the EU agreed on the so-called 20-20-20 objective, which includes increasing the share of renewable energy sources to 20% of the EU’s total consumption by 2020. • Creates opportunities within • Renewable energy • Energy efficienct • This calls for • Innovation • International know-how • Strong networks • The right experts

3. EnergyVaasa General Renewable energy Energy efficiency Strong networks Experienced power competence

4. EnergyVaasa General Renewable energy Energy efficiency Strong networks Experienced power competence

5. EnergyVaasa consists of • Businesses operating in the field of energy technology • Organizations serving these businesses, components or services • Organizations that produce and sell energy • The universities that develop and provide competent experts and research expertice for the energy business.

6. Energy and environmental technology is becoming the engine of Finnish exports. In the Vaasa region there is versatile competence and large resources to take on the challenges in the field. More than 140 businesses, several of which are global market leaders in their field Total business turnover some EUR 4,4 billion annually, export rate over 70% About 30 % of total Finnish energy technology export, population less than 2% Current number of employees 10,000, ¼ of Finland’s total energy sector manpower Number of employees in 2020 more than 20,000 More than 1000 experts specialized in energy related research and development Two of the three Finnish companies with the highest levels of R&D investment, are situated in Vaasa

7. Vaasa region – the centre for technology in Finland

8. Ostrobotnia in national comparison, technology industry EU set the 20-20-20 goals

9. A growing market

10. R&D investments in Vaasa region 2005 - 2011 • The growingmarketsrequireinvestments. • The R&D investments in the regionhavetripledduring the pastfiveyears.

11. Expected growth of the cluster • You can feel the growth in the Vaasa region • The growth of the companies means more jobs • Every year 2200 new students start in the local universities but this is not enough! • In 2011 the population growth was biggest in 30 years

12. EnergyVaasa General Renewable energy Energy efficiency Strong networks Experienced power competence

13. Sustainable development with renewable energy… • Renewable energy, and increasingly distributed energy production • In 2007, the EU agreed on 20-20-20 objectives, which include increasing the share of renewable energy sources to 20% of the EU’s total consumption by 2020 • Renewable energy resources; the sun, the wind, flowing water, organic substances, and geothermal energy. • The greatest growth potential among renewable energy sources, both in Finland and internationally, is in wind power. • In 2010, the world’s wind power capacity 200 GW. This is equivalent to approximately 100 average sized nuclear power plants. • In Finland, the aim is to produce more than 6 TWh energy with wind power by 2020. 6 TWh is equivalent to the electricity consumed by around 240,000 electrically heated houses.

14. Sustainable development with renewable energy… Components and total solutions for wind and solar power (Vacon, ABB, The Switch, Mervento) Power plants for distributed energy production, Smart Energy (Wärtsilä) Geo thermal energy. Centralized low energy network (Mateve, Ekolämpö) Electricity and heath from waste (Westenergy) Production and distribution of energy from renewable sources (Vaasan Sähkö, EPV) Research and development VEI and Technobotnia

15. Renewable Energy ” ” Patrik Holm, Technology Director Mervento Oy Suoravetoisilla kestomagneettigeneraattoreilla toimivat tuulivoimalat Our first self-owned assembly factory will be located in Vaasa. We will commence the serial production of wind turbines during 2012. A power plant consists of some 2,500 different components, and more than 10,000 in total. In Finland we have more than 200 component suppliers, and the final product will utilize nearly 70% domestic products. In 2010, Mervento Ltd was the largest Finnish start-up business ever to be financed with share capital

16. Renewable Energy Wärtsilä corporation Wärtsilä is a leading supplier of equipment, solutions and services for the marine and energy industries. The wind calms, night falls, but energy Wind and solar power offer pure energy, but the forces of nature inherently vary in availability, the rest of the time we need a balancing capacity reserve. Not even the most intelligent network solution can manage this alone. We also need smart power! In 2009, Wärtsilä was selected among the world’s one hundred best companies in sustainable development. ” ” Niklas Wägar, manager, Electrical & Automation, Power Plant Technology

17. International know-how ” ” Reijo Takala, Director/wind power The Switch Group Full power converters and permanent magnet generators Our aim is to be the global renewable energy markets’ leading technology company for converting electrical energy. We are on a wonderful journey, and it has only just begun… In 2011 The Switch Group was awarded the President of the Republic of Finland’s internationalization prize.

18. Sustainable development with renewable energy… Westenergy OyAb This is a non-profit company owned by five municipalities. There are more than 400,000 inhabitants in its operating area. In order to utilize biodegradable waste, which untreated accelerates climate change, combustion of community waste for energy must be increased. Over 60% of residential waste consists of renewable energy sources, which can be sorted as biofuel. carbon dioxide emissions within the Vaasa region will be reduced by 300,000 tons a year. This is equivalent to the annual carbon dioxide emissions of nearly 100,000 cars.. ” ” Jan Teir, CEO

19. EnergyVaasa General Renewable energy Energy efficiency Strong networks Experienced power competence

20. … and energy efficiency • EnergyVaasa businesses and research institutes are committed to reducing greenhouse gas emissions. They accomplish this through the development of products and services that improve energy efficiency throughout the chain, from production to end-use. • Distributed energy production entails new challenges for electricity distribution. The traditional method has been to produce electricity in large units and transmit it to consumers via a transmission and distribution network. In future the electricity feed points will be more evenly distributed. • The goal is economical use of energy and less emission of green house gases in all phases of the energy chain. • Distributed energy production • Combined electricity and heat production • New low-loss power transmission and distribution systems, transformers, and modern intelligent electricity distribution automation solutions • Energy saving technologies like frequency converters.

21. … and energy efficiency • Frequency converters save energy in applications with electrical motors (Vacon) • Energy efficient electrical motors and generators (ABB) • SmartGrid-solutions, leading role globally in distribution automation (ABB, VAMP, Arcteq) • New and innovative solutions in power distribution, to meet requirements with new ways of production (VEO, ABB) • Solutions for energy efficiency in homes (There Corporation, ABB) • Planning and consultation in energy production (Citec) • Electrification and planning of bio power plants (VEO, Citec)

22. Energy Efficiency Intelligent networks. ABB creates solutions for all aspects of smart grids, from energy production, transmission, and distribution to energy efficient building automation solutions. In addition to local, renewable electricity production, smart grid solutions also enable an infrastructure that supports the use of electric cars, electricity storage, and automation that improves energy efficiency in our homes and buildings.. ABB Oyelectric power and automation technology ” ” Dick Kronman, business operation development manager The ABB Group is a leader in the field of electric power and automation technology. ABB’s products, systems, and services improve the compatibility of its industrial and energy business clients in an environmentally friendly manner.

23. … and energy efficiency Vacon Oyj Frequency converters Industry consumes 42% of all electricity produced, with the most consumption coming from processes driven by electric engines. Herein lies huge potential for saving energy. By controlling the engines using frequency converters, for example, up to 40% in energy savings can be achieved.. ” ” Jukka Kasi, Vacon Drives Finland, Vice President, corporate development

24. EnergyVaasa General Renewable energy Energy efficiency Strong networks Experienced power competence

25. Co-operation and strong networks • A strong network is important when seeking constant growth within the energy technology business • Cooperation within R&D between businesses, research institutes and universities • The energy technology cluster program (OSKE) is in an important role • The objectives of the cluster program are • Strengthen organizations' competitiveness • Create new business operations • Enhance innovation • Facilitate export growth • Technology centre Merinova in Vaasa is the executor of the energy cluster program in Finland

26. Co-operation and strong networks • The Vaasa region’s large, international energy technology businesses are estimated to create at least one job per employee in the region’s many subcontractor companies. • Business organizations estimate that there are more than 120 SMEs in Ostrobotnia that operate as energy technology subcontractors. These employ a total of approximately 10,000 employees. • Competent subcontractors also create a good foundation for the establishment of new enterprises, and this further strengthens the position of EnergyVaasa.

27. Co-operation and strong networks ” ” Caj-Erik Karp, CEO Mapromec Oy Piston pins, shafts, bearing parts, lifting rolls and valve mechanisms etc. for large diesel engines Mapromec is the world’s leading manufacturer of large piston pins. – Quality, price and delivery time! These are the hard essentials for a subcontractor to be successful. Our investment in automation has enabled us to work in close co-operation with our main client.

28. EnergyVaasa General Renewable energy Energy efficiency Strong networks Experienced power competence

29. Education and experienced power competence • The strong growth of the energy sector in Vaasa generates a need for new experts to the region • These experts comes partly from the educational facilities in the region, but there is also a need to attract experts nationally and internationally • Vaasa region is the best place in Finland to start an international career!

30. Education and experienced power competence • The Vaasa Consortium of Higher Education consists of five university units and two universities of applied sciences, offering education in technology, business, languages, media and communications, and the welfare sector. • The Technobothnia Research Centre is the common research and education laboratory for these institutions. It is where students get to apply the methods they have learned in theory in a controlled environment equivalent to an industrial setting. • The universities also run the common VEI research institute (Vaasa Energy Institute), where the focus is on researching equipment and processes serving the entire energy chain.

31. A complete framework for a good life Within a 50 kilometer radius of the Vaasa market square live a total of 119,000 people. In Vaasa region, the best aspects of a human sized city and an international business life are combined. Compared to other Finnish economic regions, the Vaasa region has the most enterprises per head of population, making it the region with the densest concentration of businesses in Finland the Vaasa region is a homogenous commuter region, which has the best rate of employment in the country.

32. More information www.energyvaasa.fiwww.energycluster.fi www.cleantechfinland.fi www.vasek.fi www.merinova.fi Robert Olander tel. +358 (0)40 743 4647 e-mail: robert.olander@merinova.fi