A joint venture combining Metso’s Heat & Power business and Wärtsilä’s Biopower business has been announced by the Finnish industrial players.
Aiming to become one of Europe’s leading providers of medium and small-scale CHP plants and focusing on renewable fuels, the joint venture will combine boiler company Metso’s fluidized bed combustion technologies with power plant supplier Wärtsilä’s biograte combustion system. The companies say the technologies are complementary and enable solution offerings for a wide range of fuels in power plants.
Metso will own 60% and Wärtsilä the remaining 40% of the joint venture. It is estimated that in 2008 the net sales of the joint venture would be approximately €130 million.
‘The general market outlook for the energy industry and especially for renewable energy production is promising. With Metso and Wärtsilä now joining forces, we will have enhanced capabilities to build and develop new technologies and solutions,’ says Lennart Ohlsson, president of Metso Power. Christoph Vitzthum, group vice president, Wärtsilä Power Plants, added: ‘Fuel flexibility will be an important competitive edge in the future, and the joint venture will be well positioned to meet this challenge.’