Valmet Oyj (Nasdaq Helsinki: VALMT) has secured a major energy infrastructure order from Kraftringen Energi, the municipal energy utility in Sweden, to deliver a bubbling fluidized bed (BFB) biomass boiler and flue gas handling system for a new combined heat and power (CHP) plant in Örtofta, located in the Eslöv municipality of Skåne. The order was booked in Valmet’s second-quarter 2025 financials, although the contract value remains undisclosed.
The new CHP facility will be constructed adjacent to the existing plant in Örtofta and is intended to replace aging heat and electricity production assets. Once operational in 2028, the project is expected to nearly double the site’s production capacity, enabling Kraftringen Energi to deliver up to 25 megawatts (MW) of power to new electricity customers, alongside expanded district heating and process steam supply. Installation work is scheduled to begin in June 2026.
This investment marks the largest energy production project in Skåne in more than a decade, with substantial implications for regional energy security, grid stability, and sustainable heating.
What is the full technical scope of Valmet’s biomass boiler and flue gas treatment system for the CHP project?
Valmet’s delivery includes its proprietary bubbling fluidized bed boiler system, designed for multi-fuel flexibility and high combustion efficiency. The project scope covers the main boiler plant, auxiliary systems, and the boiler building, as well as Valmet’s integrated flue gas cleaning system.
The emissions control package will consist of a baghouse filter, selective catalytic reduction (SCR) technology for nitrogen oxide (NOx) removal, a combustion air moisturization unit, a high-efficiency flue gas condenser, and condensate treatment infrastructure. In addition, the flue gas handling system is designed to be carbon capture–ready, allowing for future integration of CO₂ separation technologies in line with evolving European climate regulations.
The BFB technology enables efficient combustion of challenging fuels including recycled biomass, sludge, and other renewable feedstocks. By recovering excess heat from the flue gas and feeding it back into the district heating network, the system maximizes energy efficiency while ensuring low emissions.
Why is this investment important for energy reliability and heat security in southern Sweden?
For Kraftringen Energi, the Örtofta CHP expansion plays a critical role in modernizing the regional energy system. The project enables the replacement of outdated thermal production assets with modern, efficient, and cleaner infrastructure. Kraftringen Energi—owned by the municipalities of Lund, Eslöv, Hörby, and Lomma—has committed to 100% renewable and recycled fuels in its energy mix since 2018.
According to Fredrik Fackler, Business Area Manager for Heating and Cooling at Kraftringen Energi, the new plant enhances operational reliability, production optimization, and energy preparedness across central and western Skåne. With its proximity to demand centers and capacity for localized power generation, the CHP facility is expected to support both residential and industrial heating needs more efficiently.
The project also addresses a broader Swedish energy policy objective: strengthening municipal resilience and reducing dependency on fossil imports, particularly during periods of grid stress or seasonal heating spikes.
How does the order reflect Valmet’s strategic positioning in clean energy systems and Nordic infrastructure?
Valmet Oyj, headquartered in Espoo, Finland, is a long-standing supplier of process technologies, automation, and energy solutions with a heritage spanning more than two centuries. The company has consistently invested in biomass combustion, flue gas cleaning, and decarbonization-ready infrastructure.
This CHP order reinforces Valmet’s leadership in sustainable heat and power systems across the Nordic and Baltic regions. Niina Ollikka, Vice President of Boilers and Gasifier Solutions at Valmet, said the project is “strategically important,” aligning with Valmet’s commitment to future-ready energy facilities that can support downstream integration of carbon capture and advanced emission compliance.
The project builds on previous reference deliveries for biomass and waste-to-energy CHP plants, including installations in Finland, Denmark, and Sweden. Notably, the company’s fluidized bed boilers have been adopted for both industrial steam use and large-scale municipal heating networks.
What investor sentiment trends are emerging around Valmet’s clean energy order book and regional strategy?
Valmet’s stock (VALMT: FH) has traded steadily around €26.00 in early July 2025, with investor sentiment moderately positive despite margin pressures in the capital equipment sector. Analysts suggest that recurring wins in biomass and heat transition infrastructure may provide steady backlog visibility through FY2026, especially as more European municipalities opt to replace fossil-based plants.
While the contract’s financial details are not public, institutional investors view this order as reinforcing Valmet’s stable energy pipeline, particularly amid a volatile global industrials sector. The potential for recurring service revenue, digital controls integration, and future carbon capture retrofits also adds multi-year value to these turnkey projects.
With Europe pushing toward decarbonized heat and distributed power, Valmet’s technology stack—especially in the BFB and flue gas handling space—is seen as a durable differentiator in both public and private procurement cycles.
How does the Örtofta CHP plant reflect broader trends in biomass, district heating, and carbon capture readiness?
Biomass-fired combined heat and power systems continue to gain traction as transitional assets within the European energy landscape. They offer base-load stability, local fuel circularity, and a bridge to carbon-negative energy when paired with BECCS (bioenergy with carbon capture and storage).
The inclusion of flue gas condensation and SCR in Valmet’s delivery ensures high energy recovery and reduced environmental impact. Moreover, the carbon capture–compatible system design anticipates future climate legislation and positions the site as a prime candidate for emissions mitigation retrofits.
For Sweden—already a global leader in district heating and carbon taxation—the Örtofta plant represents a forward-looking approach to municipal infrastructure. Its modularity and clean emissions profile also align with future European Commission directives on industrial decarbonization.
What are the long-term implications for Valmet’s order pipeline and the Nordic energy transformation?
The successful delivery and commissioning of the Örtofta facility could act as a springboard for additional biomass and hybrid CHP deployments across northern Europe. With municipalities under pressure to decarbonize legacy infrastructure, demand for scalable, fuel-flexible boilers and emissions control systems is expected to grow.
Installation of the boiler and flue gas handling system will begin in mid-2026, and commercial operations are slated for 2028. Industry observers expect Valmet to use this project as a showcase for future contracts in heat transition and net-zero aligned energy systems.
In addition to product delivery, Valmet may benefit from long-term service contracts, automation upgrades, and future carbon capture module integration, all of which align with its revenue diversification strategy post the Neles merger.
Valmet’s biomass boiler and flue gas system order from Kraftringen Energi positions the Finnish industrial technology supplier as a critical enabler of municipal heat decarbonization in Sweden. The Örtofta CHP facility blends near-term reliability with long-term climate adaptability, combining proven combustion technologies with carbon capture readiness and high-efficiency recovery. For both Valmet and Kraftringen Energi, the project signals strategic alignment with regional sustainability goals—and sets a replicable model for future Nordic heat infrastructure investments.
Discover more from Business-News-Today.com
Subscribe to get the latest posts sent to your email.
