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25 November 2025 | News

Nivala Biogas Plant Project Breaks Ground

The foundation stone has been laid for what will become Finland’s largest biogas plant, marking the official start of construction. The site will also house the country’s largest industrial facility for capturing biogenic carbon dioxide.

Nivala Biogas Plant Project Breaks Ground

The Nivala biogas plant, owned and developed by Copenhagen Infrastructure Partners (CIP) through its CI Advanced Bioenergy Fund I (CI ABF I), reached its first major milestone when the foundation stone was laid on Tuesday, 25 November 2025. The ceremony was performed by Jussi Rämet, Regional Mayor of the Council of Oulu Region, Päivi Karikumpu, Mayor of the City of Nivala, Member of Parliament and member of the Economic Affairs Committee, Timo Mehtälä and Andreas F. Brandt, Partner at Copenhagen Infrastructure Partners, together with local stakeholders.

The plant will be completed in 2027. The project significantly strengthens regional energy self-sufficiency by increasing local renewable energy production and reducing Finland’s dependency on imported gas. In addition, the project supports sustainable agriculture by reducing nutrient runoff and methane emissions.

The plant will produce more than 200 gigawatt-hours of liquefied biomethane annually and process 600,000 tonnes of biomass. During the construction phase, the project will employ hundreds of person-years, and once operational, the plant will provide 15–20 permanent jobs.

Local Farmers as Part of the Circular Economy

When operations begin, the raw materials for the plant will be supplied by local farmers, whose contribution is essential to its operation. Feedstock agreements have been made with farms that will deliver slurry, manure and sustainably harvested biomass, such as grass or straw. Cooperation involves more than one hundred local farms.

– The Nivala project is a significant milestone for both CIP and Finland’s green transition. In close collaboration with local farmers and businesses, we are not only building the country’s largest biogas plant; we are reducing reliance on imported gas, supporting sustainable agriculture, and creating new jobs in the region. And Nivala is just the beginning. We are grateful for the warm welcome and see great potential for more projects like this in Finland in collaboration with local partners, Brandt says.

A farmer-led shared pipeline initiative will also be launched in connection with the project. It is the first of its kind in Finland. The system will enable the circular nutrients produced at the plant to be transported directly to a local pipeline near the fields, from which they will return to farmers as biofertiliser. This improves nutrient cycling and reduces transport needs and environmental impact.

Main Contractors Appointed

The German company Bioconstruct GmbH has been selected as the main contractor for the entire facility, responsible for technical delivery and process installation. The construction of foundations and buildings will be carried out by Rakennusliike Sorvoja Oy. Construction will take place in close cooperation with local companies, strengthening regional expertise and amplifying the project’s positive economic effects. In addition, biogenic CO₂ capture will enable the utilisation of carbon dioxide in the production of synthetic fuels, chemicals and other industrial processes.

NIHAK brings together project developers and local companies to ensure that regional resources and know-how are used optimally. NIHAK’s CEO, Toni Krankkala, states that in addition to direct employment effects, the project will help build companies’ capabilities to participate in other clean-transition projects and increase the region’s attractiveness as an investment destination.

– This investment offers real growth opportunities for local companies. The effects will not be limited to the construction of the plant — the indirect consequences for the future are significant. Investments of this kind attract further projects and capital, says Krankkala.

Regional Development Strengthens the Vitality of the Entire Area

The effects of the project extend well beyond Nivala itself. The investment creates new competence networks and infrastructure that support the long-term development of the entire region—from business and agriculture to the energy sector. At the same time, the project strengthens the region’s ability to promote and execute large industrial investments.

– This is not just a Nivala project, but a shared initiative for the entire sub-region. Each such investment benefits neighbouring municipalities, strengthens the vitality of the whole area, and enhances our joint ability to seize future opportunities, says Päivi Karikumpu, Mayor of Nivala.