Tahkoluoto Offshore Wind Extension project proceeds without demonstration phase
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 projectitself.
The purpose of the demo phase was to pilot large-scale offshore wind turbines, foundation concepts and construction methods for deep waters (15–45 metres), and was expected to entail the construction of two approx. 15 MW turbines. The demonstration project received a grant of 30 million euros 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,” says 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 Fam 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,” says 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 emphasises.
Tahkoluoto offshore wind farm and the Extension project
Constructed in 2017 and comprising of 11 wind turbines, the Tahkoluoto offshore wind farm is Finland’s first offshore wind farm and the only one in the world operating in frozen sea conditions. The wind farm is owned by Suomen Hyötytuuli Oy.
Tahkoluoto Offshore Oy owns the Tahkoluoto offshore wind farm Extension project, which consists of 40 turbines of 15–20 MW. The Extension project will be built on the west coast of Finland, some 4–22 kilometres from the coastline and at a depth of 15–45 metres. The project is expected to be built in 2027–2029.
Tahkoluoto Offshore Oy is responsible for the Tahkoluoto offshore wind farm Extension project. The company was founded in 2024 when Suomen Hyötytuuli carried out a demerger and was split into three companies. Suomen Hyötytuuli’s wind farms and onshore wind energy projects were transferred to a new company by the same name. Tahkoluoto offshore wind farm Extension project was transferred to Tahkoluoto Offshore Oy. Suomen Hyötytuuli’s personnel was transferred to Arenso Oy which manages and operates the wind energy production and development for Tahkoluoto Offshore and Suomen Hyötytuuli.