Business Finland has granted an investment aid of EUR 48.7 million for the construction of the world’s first carbon-neutral production plant in Tahkoluoto, Pori. The vanadium plant to be built by Novana Oy will operate by recycling industrial side streams, from which vanadium is separated using patented leaching technology and the by-products generated are utilised in the manufacture of building materials such as concrete.
The vanadium plant planned for Pori is unique even on a global scale. The plant has been planned for a long time, and the necessary environmental permits have already been granted to it. The project development is very advanced, and the plant’s production has also been sold for years to come. Business Finland’s investment aid helps to ensure the success of the project.
“The investment aid now granted is a significant step towards the realisation of the project, as the market situation for new industrial investments, and especially for new circular economy technologies, is challenging. The grant now received enables the finalisation of the financing process and sends a strong message to investors that the Finnish government believes in the project. The vanadium plant is exactly what the EU needs: a circular economy, self-sufficiency and new industrial cooperation,” says Johanna Lamminen, CEO of Novana Oy.
Vanadium is a metal defined as a critical raw material by the EU, which is used, among other things, in the manufacture of special steels and, increasingly, in the battery and energy industries. Europe consumes about 8% of the world’s vanadium, but has no primary production itself. The EU, which seeks self-sufficiency in critical raw materials, is currently dependent on Chinese and Russian production.
The Pori plant is estimated to produce about 9,000 tonnes of vanadium pentoxide per year, which corresponds to about 5–6 per cent of the total global production and up to 60 per cent of the vanadium needed in Europe. The technology used in vanadium recovery was developed by the Australian company Neometals Ltd.
“The vanadium plant is an excellent example of how Finland can strengthen its position as a pioneer in sustainable industry. Business Finland’s investment aid supports not only new technology and the circular economy, but also Europe’s self-sufficiency in critical raw materials. The project promotes the green transition and creates significant opportunities for Finnish industry and expertise, says Program Director Sini Uuttu at Business Finland.
The Port of Pori and the workforce play a crucial role in the investment decision
Pori was chosen as the location for Novana’s vanadium plant due to its good logistics and skilled workforce, among other things. Business Finland played an active role in applying for a position at the department. During the construction phase, the project will employ up to 600 people in construction, and once completed, the mill will employ 150 people permanently.
“The vanadium plant will play a major role not only in strengthening the regional economy of Pori but also in supporting Finland’s export industry. It reinforces Finland’s position as a leader in circular economy and in critical mineral production, with Pori at the forefront. The project will create direct employment opportunities and increase activity at the Tahkoluoto Port. In addition, vanadium processing at the facility will enable new educational and research collaborations with universities and vocational institutions, while opening new avenues for the construction sector within the circular economy,” says Lauri Inna, Mayor of Pori.
The total investment in the vanadium plant in Pori is EUR 400 million. The construction of the plant will begin once the funding has been secured and is estimated to take 2.5–3 years.
Additional information:
Novana Ltd
Johanna Lamminen, CEO
Telephone: +358 40 848 4448
Email: johanna.lamminen@elisanet.fi