Finnish marine and energy business with 80% local content. Merinova cluster on innovation course
By Marek Grzybowski
The maritime and energy business is an activity based on the effective use of the coastal location, as demonstrated by the maritime and energy cluster Merinova. The technology cluster operating in northern Finland employs around 13,000 people and achieves annual sales of EUR 6 billion per year, of which the share of export in revenues is over 80%. Also, 80% of local content is provided in domestic products, as in the case of the ferry “Aurora Botnia”. The Ro-pax operated by WASALINE is packed with the latest technologies manufactured in Finland.
The energy cluster EnergyVaasa operating in the region is also a cluster with a strong maritime base, the base of which is Wärtsilä, with the recently completed Smart Technology Hub and engine production plant. But these are not all the activities of the company well-known among shipbuilders, producing ship engines of various sizes. The plants were established in the environment of about 200 companies focused on the development and production of innovative solutions and technologies, top-class products for onshore and offshore energy.
The multidimensional potential and industrial and research activity of the region could be seen by the participants of the ecosystem visit of the I3-4-BLUE GROWTH project in Vaasa. Out of 180 companies operating in the Merinova Cluster, the following were presented: Wärtsilä, EnergyVaasa, VEO Group, Wapice Ltd. The Switch, Wasaline, Danfoss Voltage and projects, including H2Excellence Project, Vaasa Project and Vaasa Aktion regional development.
On December 10 and 11, 2024, a European cluster visit was organized by Technology Centre Merinova Oy in Vaasa, Finland. The Finnish technology center in Vaasa was visited by more than 30 cluster representatives, including: Baltic Sea & Space Cluster, ANI – Agência Nacional de Inovação, HAMAG-BICRO – Croatian Agency for SMEs, Innovation and Investment, CTAQUA Centro Tecnológico de Acuicultura Agrifood, Clust-ER Pôle Mer Bretagne Atlantique, Unknown Group, BLUEBIO ALLIANCE, Direção Regional da Ciência e Tecnologia.
Vaasa – a technology hub
The visit started on a high note with a presentation of Wärtsilä’s Smart Technology Hub. This is a new research, product development and production center in Vaskiluoto, Vaasa. Since 2020, all Wärtsilä functions and personnel have been operating in the spaces of the new center, where the project participants were guided by Veijo Tapani Karinkanta, Program Director at Wärtsilä Finland Oy.
– Continuous renewal is in Wärtsilä’s DNA – said Wärtsilä President and CEO Jaakko Eskola, announcing the decision to build a new plant and design center a few years ago, and recalled that “The company was founded in 1834 as a sawmill in the village of Värtsilä in Tohmajärvi, and is now a world leader in smart technologies and comprehensive solutions for the marine and energy markets. Vaasa Smart Technology Hub is another generational change for us – it takes Wärtsilä’s expertise into a completely new area.”
Smart Technology Hub is the realization of Wärtsilä’s vision of Smart Marine and Smart Energy, which is a response to the dynamic demand for innovation in the marine and energy business. The Hub operating in Vaasa enables the design, testing, development and production of products and innovative solutions for the marine, oil and gas industry, as well as the creation of innovations for energy systems, presented Karinkanta and emphasized that “Smart Technology Hub is an important part of Wärtsilä’s global network of expert centers.” When locating the new set of research and production facilities in Vaasa, it was taken into account that the Vaasa region is already a leading energy technology cluster in the Nordic region.
In November 2024, VEO’s multi-million investment began to operate at full speed. In Vaasa, VEO produces, for example, switchgear, but also designs and builds solutions and packages from products from other manufacturers. The expansion of the factory not only increased the production capacity but also offered new space for customers. – The expansion resulted in an area where project packages can be tested and customers can familiarize themselves with their solutions before installation in the field – said Timo Ala-Heikkilä, CEO of VEO at the time of the launch of the new production space and explained: “We are a design house and one of our strengths is that we have the freedom to use the best products on the market”. VEO has taken customer service a step further with the expansion of the factory. The company’s customers now even get their own office space and conference rooms where they can work freely in the factory – the VEO representative showed the representatives of the European Clusters. “Customers come from all over the world and can spend several weeks here, so it is important for them to have a place where they can work without obstacles”, explained Timo Ala-Heikkilä about the new initiative.
Vaasa Hydrogen Initiative
A hydrogen “port” is being built in Vaasa for the generation, storage and supply of electricity. 14 million euros of investment support was allocated to the project three years ago. A system for storing and producing electricity based on a green hydrogen installation has been designed. EPV Energy, Vaasan Sähkö and Wärtsilä have undertaken to build a Power-to-X-to-Power system. It will enable the use of hydrogen for storing renewable energy. The onshore installation will be connected to the port infrastructure.
This year, a new consortium was established with the University of Vaasa as the leader, which will research the hydrogen-argon energy cycle in order to achieve net zero emissions. The Integrated Hydrogen-Argon Power Cycle (iHAPC) consortium aims to revolutionize the energy sector by developing a sustainable hydrogen-argon energy cycle (H-APC) on a pilot scale. The concept aims to achieve unprecedented energy efficiency with zero net emissions, according to the project authors.
Wapice Ltd. presented the latest IT solutions, including the use of artificial intelligence in transport and management systems, which are used in a wide range of IoT applications. The Switch uses the demand for solutions related to both onshore and offshore energy. In order to meet the growing demand for solutions for maritime transport, the company has expanded its plants. Both product lines are being intensively developed – power electronics and electric machines.
Until recently, all products were manufactured in Vaasa and Lappeenranta in Finland or in Stord in Norway. For 10 years, the Finnish company’s partner has been the NanJing Changfeng (NJCF) plant from China, which supplies the main components to European electrical machine production plants. In Vaasa, cluster representatives could see the entire range of The Switch products. From generators for wind turbines through the entire range of shaft generators and ship generator components. In order to shorten logistics chains, production capacity will be increased in China. The country’s shipbuilding industry generates significant demand for Finnish equipment developed by The Switch.
Aurora Botnia – 80% Finnish content
Participants of the I3-4-BLUE GROWTH project could see how products manufactured in the country are located during the journey on the ferry of the WASALINE operator. Ro-pax Aurora Botnia provides ro-pax service between the ports of Vaasa and Umea. The ferry is a modern ship with 2 cargo decks and a cargo line of 1500 m for trucks and passenger cars. It can accommodate 935 passengers. The ship has a hybrid drive. The engines manufactured in Finland can burn ship fuel or gas. The ship can also use battery power.
The main source of power for the combustion engines is gas from the LNG system placed on board. The ship is prepared to use BioLNG. The shipowner emphasizes that the ferry was built by Rauma Marine Constructions in Finland and is over 80% manufactured in the country. M/F Aurora Botnia was awarded the Ropax Ferry of the Year title in 2021. The Association for Finnish Work awarded the “Key flag” symbol to Aurora Botnia as recognition of a product made in Finland.
Companies producing and paying taxes in Finland contributed to building local content, including the previously mentioned Wartsila and VEO, and Danfoss. The latter company recently launched a factory in Vaasa with an area of 4 football pitches. This is the result of extraordinary development dynamics. In 2023, the company continued its investments aimed at expanding its offer of competitive and innovative solutions.
Wartsila and Danfoss and WE Tech Solutions – innovations in ro-pax
In 2023, Danfoss increased its profit by 10% (EBITA) and cash flow by 49% – according to data published by the company’s management. Sales in 2023 increased by 7% in local currency and by 4% in euro and amounted to EUR 10.7 billion. Record operating cash flow after taxes and interest increased by 49% to EUR 692 million. Sales increased in North America and Europe. Sales fell in the Asia-Pacific region. Mainly due to the economic slowdown in China. While India continues to record significant growth in demand.
The hybrid ferry Aurora Botnia is the first ship in the world equipped with Danfoss iC7 liquid-cooled high-power converters. The ferry is equipped with a hybrid electric propulsion system installed by WE Tech Solutions. The system combines engines and 2.2 MWh batteries. It uses low-emission hybrid technology in combination with four large lithium-ion battery banks to support power generation.
The electric engines, propulsion system and shore-side grid connection functionality are controlled by iC7-Marine converters and power converters. They provide the best possible energy efficiency and lowest emissions. WE Tech’s hybrid DC electric propulsion solution for Aurora Botnia provides redundancy, flexibility and extremely efficient operation. WE Tech Solutions supplied the entire propulsion system from the flywheel of the dual-fuel engines to the Azipod® propulsion units. The switchgear, Energy Storage System (ESS), energy management system and propulsion control system are all Finnish-made. “This hybrid electric propulsion solution is the heart of the vessel, saving tons of fuel and reducing emissions both at sea and in port,” the manufacturer emphasizes.
Business, research and education in one cluster
These effects were achieved by integrating research and development activities with industrial activities. A good example here is TechnoBotnia Technology Park, whose roots date back to the 1740s. Today, it is a modern teaching and research center. The University of Applied Sciences VAMK operates here, and TechnoBotnia closely cooperates with the University of Vaasa and Novia University of Applied Sciences on the Palosaari Campus. TechnoBotnia has numerous laboratories that also offer their industrial services. Education is conducted in small groups of students, which ensures high quality education linked to the needs of the industry focused on implementing innovations.
An important initiative in Vaasa that should be mentioned is the Energy Academy. It is a permanent process of activating scientists and students implemented by EnergyVaasa and Merinova. It is a comprehensive system of cooperation between universities and leading companies in the Vaasa region. EnergyAcademy aims to increase the attractiveness of working in the industry for students and graduates. Due to the high level of innovation of companies operating in Vaasa, it is about integrating science, education and professional activity.
Energy Academy It combines all six universities operating in Vaasa: University of Vaasa, Vaasa University of Applied Sciences VAMK, Novia University of Applied Sciences, Hanken School of Economics, University of Helsinki and Åbo Akademi University. Leading companies and centers in the region are involved in these activities: ABB Oy, Danfoss, EnergyVaasa, Etha, Hitachi Energy, Merinova, City of Vaasa, Vaasan Sähkö, VASEK and Wärtsilä Finland.
This cooperation model is closely linked to the Nordic Battery Belt, which makes the Vaasa area an important link in the sustainable value chain in Finland, Sweden and Norway. It is emphasized that “Energy Academy places emphasis on supporting students by being available and present in their learning”.
It is about bringing students and companies closer together, from an early stage, increasing interdisciplinary cooperation, establishing links between education and working life, achieving mutual understanding between schools and companies on the needs and challenges in the industry, achieving local synergies in attracting and retaining talent. Such achievements are possible thanks to the atmosphere in the region and the city, which this year won the European Green Leaf for 2026.
The justification for the award emphasizes that “Vaasa is a strong example of how innovation, cooperation and a deep respect for nature can create a greener, more sustainable world”. It is emphasized that Vaasa, a city of 67 thousand inhabitants, is a great example of how innovation, cooperation and a deep respect for nature can create a greener, more sustainable world. inhabitants is the Nordic energy capital. And its heart is a cluster of companies with annual sales of EUR 6 billion and research expenditure of EUR 250 million per year.