OREANDA-NEWS. August 14, 2012. Continuing his three-day working visit to Finland Head of Karelia Alexander Khudilainen visited the thermal power station of Pursiala in Mikkeli owned by KuEtela-Savon Energia Oy (ESE).

The Pursiala power plant built more than 100 years ago uses wood and peat. Ese also has its share in a number of other companies that own wind, nuclear and hydro power plants. Pursiala satisfies the needs of the town of Mikkeli in heating by 90%, and it provides electric power to the entire adjoining area, and delivers electric power beyond.

In the beginning of the 1990s wood fuel was almost out of use at Pursiala. However, because of rigid requirements of the European Union to decrease harmful emissions in the atmosphere the company management was one of the first in Finland to make a decision to start using mixed fuel. The governmental support which makes use of wood chips profitable has played a prominent part in this process. Thus, the price ratio of the energy generated with black oil, and the energy generated with wood chips (in view of the state support of bio-energetics), is approximately equal to the black oil and gas price ratio. As a whole, by 2020 Finland plans to receive 32% of energy generated in its territory from renewable energy sources: wood fuel, wind, water, and sun.

This issue was of great interest to Head of Karelia as one of the priority strategic tasks he has set for the Government of the republic is overcoming the energy deficiency which impedes effective development of industry and infrastructure. In particular, matters concerned possible cost of construction and problems in operation of small boiler-houses burning renewable energy sources that could be esential to those settlements of Karelia where natural gas is not planned to be supplied.

Possible spheres of cooperation between ESE and Karelia were discussed at the meeting. The possibility to receive Karelia's wood and peat is the most interesting to the company. About 5 years ago ESE harvested and produces wood chips in Lahdenpohja region of the republic, however the volumes appeared to be insufficient, and the price was too high. Currently the company owns a logging and a logistic enterprises in the Leningrad region, although the companyu is interested to expand its deliveries from Russia also from territories located closer to the border.

Head of Karelia has mentioned that in the North of our republic there's plenty of wood, peat reserves are explored, and there's an opportunity to deliver the fuel to Finland by road or by rail. The management of Karelia is interested to expand cooperation with Finnish enterprises and is ready to continue negotiations and exchange specific proposals with the Finnish party.

On August 14, within the scope of the working trip of Head of Karelia Alexander Khudilainen to Finland the town of Mikkeli was a venue for the meeting of Head of our republic with representatives of business circles of South-Savo County. The management of the Chamber of Commerce of the County, large industrial entreprises, financial organizations, authorities, state and municipal institutions responsible for economic development took part in the meeting.

"We'll try to restore the investors' confidence in Karelia," – Head of the republic emphasized, having mentioned that active measures are taken in the republic to enhance its investment potential: from large-scale provision of gas supply and road construction (including, toward the state border) to new mechanisms of encouragement of investors both at the level of the region, and at the level of municipalities (including extension of the terms of preferential tax treatment, preparation of investment sites, reduction of the administrative burden).

According to the development strategy of Eastern Finland the Finnish party, besides forestry and mining, is specially interested in development of joint projects in such shares as bioenergetics, environmental conservation, information technologies, as development in these spheres is supported by the government.

In turn, Valentin Chmil, Deputy Head of the Republic of Karelia and Minister of Economic Development, mentioned that agriculture, use of bioresoirces of Lake Onego and the White Sea and food industry (e.g. processign of fish, mushrooms and berries), and construction of low-rise homes may be of special interest to investors in Karelia.

Entrepreneurs that know Alexander Khudilainen from successful investment cooperation in the Gatchina district in the Leningrad Region took part in the meeting on the part of Finland.