Tahkoluoto Offshore Oy will proceed with the development of the Tahkoluoto offshore wind farm extension project without the two-turbine demonstration phase. The demo phase was discontinued due to time restrictions of the investment grant, as well as uncertainty in property taxation of offshore wind production in Finland. This change will not affect the scope and timeframe of the extension project itself.
The purpose of the demo phase was to pilot large scale offshore wind turbines, foundation concepts, and construction methods for deep waters (15 – 45 m), and was expected to entail the construction of two approximately 15 MW turbines. The demonstration project received a grant of €30 million from the Ministry of Economic Affairs and Employment in Finland.
The project was ready for investment decision when it had to be discontinued due to changes in delivery schedules.
“The grant received from the Ministry of Economic Affairs and Employment in Finland set a deadline for the completion of the demo phase, and changes in delivery schedules would have negated the grant. In the current market situation, cost pressure is high, and there is considerable uncertainty over property taxation of offshore wind in Finland. In this context, risks for the investment became too high,” said Toni Sulameri, Managing Director of Tahkoluoto Offshore Oy.
Despite of the discontinuation of the demonstration phase, the company proceeds with the preparation of Tahkoluoto offshore wind farm extension project. The investment decision is currently scheduled for the end of 2026, with construction phase taking place from 2027 until 2029.
“In terms of its scope, the demo phase was a next generation wind energy project, and in many respects a pioneering project. It helped us to improve our skills, organisation and value chain significantly. We were able to develop all project components up to investment readiness before the last-minute schedule change. Despite the discontinuation of the project and the disappointment it caused, the work we have done instils confidence in the continuation of the Extension project itself,” added Petri Mikola, in charge of the demonstration phase of the Tahkoluoto offshore wind farm extension project.
“Although the growth of the energy market has slowed down, we are looking forward to investments, for example, in the hydrogen industry. At the moment, Tahkoluoto offshore wind farm extension project is further along than any other offshore wind project in Finland and also the only one that can be completed already in this decade,” Sulameri concluded.
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