The Central Finland Region consists of its capital, Jyväskylä, and 22 municipalities and cities. The area, which has 80% forest cover, hosts traditional forestry and machine production industries as well as new technology and bioenergy companies. Bioeconomy is a lead word in the development of the region, and even though measuring the exact economic impacts of the bioeconomy has proven challenging, it is undisputedly one of the most important economic sectors of the region.
Knock on wood
Although facing challenges such as increasing unemployment and an ageing and decreasing population, the forest region of Central Finland is experiencing a deepening devotion to bioeconomy. This type of economy is based on biomass and is one of the strongest sectors of Central Finland’s economy. Biomass is harvested directly from forests, peatlands and fields, industrial by-products and residues, biodegradable fractions of waste, and to some extent also inland water. The use of biomass resources covers the production of pulp, paper, cellulose, cardboard, and wood products, as well as food and energy production. About 1,000 companies, ranging from massive industries to small-scale businesses, are operating within the sector. The bioeconomy provides roughly 15,000 jobs across the region and Central Finland has good preconditions for developing top-level regional bioeconomy expertise.
Supported by policy and projects
Despite the vast availability of renewable resources, green economic growth depends on humans’ choice of action. In this case, extensive cooperation between leading academic institutions, the public sector, and private actors is an important factor, generating a high level of know-how and innovative thinking. Bioeconomy has been defined as one of three flagships of the Central Finland’s Strategy for 2040, and rural and urban planning, taxation, and the granting of licenses and permits have taken bioeconomy aspects into consideration. The development has been stimulated by financial instruments and set high on the political agenda as a means to achieve environmental sustainability, economic growth and wellbeing. This guarantees bioeconomy a strong political impetus and consistent goal setting for the upcoming decades. Additionally, Central Finland was recently included in the EU-led BERST project, which aims to identify the bioeconomic potential of EU regions and to solve related issues.
Spotlight on: The new Äänekoski bioproduct mill
Several leading bioeconomy companies – both national and international – operate and undertake research and development in Central Finland. One of these is the Metsä Group, which is about to replace its current pulp mill with a next-generation bioproduct mill in Äänekoski (see figure, if permitted to be used). The new mill will generate 1,800 GWh/year of electricity and 680 GWh/year of heat and steam from wood, and is the biggest investment in the history of the forest industry in Finland; it is estimated to cost €1.1 billion. The mill should create over 2,500 jobs in the entire value chain, but would also more than triple the current wood demand of the production site and increase traffic flow[1]. Spillovers and new opportunities are expected for small-scale businesses in the region, with the hope they will create an encouraging atmosphere among Central Finland’s bioeconomy actors following the recession. The bioproduct mill will also assist in fulfilling the regional climate strategy plan, which contains targets for renewable decentralized energy production, and increase the share of renewable energy at the national level by approximately 2%.
Regional dimension
The spreading bioeconomic focus of Central Finland depicts a growing economic resilience, and is to a large extent based on cooperation and knowledge exchange locally, regionally, nationally, and internationally. Universities in the region play a key role as drivers of initiatives and projects, while regional strategies provide a common trajectory, opening up for industrial symbioses. Bioeconomy has been successfully integrated into the regional educational strategies, and local universities are educating experts for the future. Projects have emerged as a response to a regional bioeconomic vision, providing green jobs in an area otherwise threatened by a decline in human resources.
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