Helsinki Shuts Down Its Last Coal Power Plant

The operations of the Salmisaari coal power plant have ended as of 1 April 2025. Abolishing the use of coal is a significant milestone for Helsinki on its journey towards carbon neutrality. The closure of the power plant will reduce Helsinki’s carbon dioxide emissions by 30 percent compared to the previous year, and it practically also marks the end of coal burning in Finland as a whole.

Helsinki’s climate goal is to achieve carbon neutrality by 2030, twenty years ahead of the EU’s target. Abolishing fossil fuels in energy production plays a significant role in achieving this goal. The first really major step into the green transition was taken two years ago, when the municipal energy utility Helen Ltd, a subsidiary of the City of Helsinki, shut down the Hanasaari B power plant. Now, Helsinki’s last remaining coal power plant, Salmisaari, is being relegated to the history books.

“The closing of the coal-fired energy plants is an important and historical change for Helsinki, Finland and, ultimately, the whole planet. Cities the world over have assumed a leading role in the fight against climate change. Helsinki wants to be a bold forerunner, on both a national and global level. The fact that we have been able to resolutely move forward with our plans to shut down coal-fired power plants in our city is a strong indicator of our determinedness in this area,” says Juhana Vartiainen, Mayor of Helsinki.

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The closing of the Salmisaari coal power plant will reduce the City of Helsinki’s emissions by 30 percent. The abolishment of coal has happened quickly in Helsinki, as in 2022, coal still accounted for 64 percent of Helen’s district heat production. Helsinki has now closed both the Hanasaari and Salmisaari coal power plants within two years, which will reduce the city’s CO₂ emissions by an impressive 43 percent. At the national level, the closing of the power plants in Helsinki will reduce the total carbon dioxide emissions of Finland by 5 percent.

Heat production to be divided among several sources

Energy production is no longer be based on fossil fuels in Helsinki. Helen’s investments in carbon-neutral production, such as Europe’s largest electric boiler plant and the world’s largest heat pump, have enabled Helen to move away from coal completely. Going forward, the Finnish capital will transition into electrified energy production based on heat pumps utilising waste and environmental heat, electric boilers, energy storage and sustainably produced bioenergy. Helen produces electricity mainly from wind, nuclear, hydro and solar power.

“With regard to the Helsinki’s direct climate emissions, we have made particularly good progress towards our goal of achieving carbon neutrality by 2030 in terms of heating and electricity consumption. Shutting down the operations of the Salmisaari coal power plant is a really important step and a much-needed major deed. However, our determined work towards emissions reductions will not stop here, as our objective is to be net zero by 2040, and from there on we will strive towards carbon negativity,” points out Deputy Mayor Anni Sinnemäki.

Hydrogen offers new business opportunities

As electricity production becomes more diversified, one of the most talked about clean energy solutions of the future is hydrogen. Helsinki is also investing heavily in this area. One interesting pilot project for green hydrogen production is Helen’s 3H2 – Helsinki Hydrogen Hub. The goal is to start hydrogen production in a new facility in 2026. Hydrogen also offers business opportunities for international companies.

Finland’s key strengths in the hydrogen field are based on the clean, robust and cost competitive electricity system, a high-tech society with a predictable low-risk investment environment, an ample supply of clean water and biogenic CO₂, and excellent opportunities for taking advantage of the side streams of hydrogen production.

Towards greener Helsinki. Photo: Kari Ylitalo, Helsinki Partners

(India CSR)