gasum’s year - gasum - suomalainen energiayhtiö · organization and business units ... tion into...

A CLEANER TOMORROWGASUM’S YEAR

CONTENTSCEO’s review ................................................................................................................................4

Gasum in brief and key figures .....................................................................................6

Organization and business units .................................................................................8

Highlights in 2016..................................................................................................................10

Developing a smart gas system

LNG infrastructure ................................................................................................................. 14

LNG for maritime transport ........................................................................................... 16

LNG for industry ...................................................................................................................... 17

Solutions for land transport........................................................................................... 18

Competitive gas enabling innovation

Biogas for a cleaner tomorrow ..................................................................................24

Supply-secure and flexible natural gas ...............................................................26

Promoting sustainability and creating a new Gasum

Our corporate responsibility program ..................................................................28

Future becomes a reality through action ..........................................................30

Clean gas solutions supporting energy and climate policy ................ 32

New ways to improve occupational health and safety ........................... 34

Key role played by personnel competence ..................................................... 36

Gasum Management Team (GMT) and The Board of Directors ......40

Gasum is a Finnish expert in the gas sector that is building a gas ecosystem for natural gas, local biogas and liquefied natural gas (LNG) in the Nordic countries. The starting point for everything is a cleaner tomorrow in the achievement of which gas plays a key role. Natural gas alone can help achieve a 40% cut in greenhouse

gas emissions from energy production, industry and transport, and emissions can be reduced even further through the increased use of local biogas. We are promoting a sustainable energy future

through new innovations and circular energy solutions.

In 2016 we took major steps purposefully towards a cleaner tomorrow. In this Annual Report we outline how we did that.

NORDIC GAS ECOSYSTEM AND A CLEANER TOMORROW

Clear steps have been taken in the development of the Nordic gas

ecosystem based on local biogas,

liquefied natural gas and energy-efficient pipeline natural gas.

C E O ’S R E V I E W

4 A CLEANER TOMORROW

Natural gas still plays an important role in the transi-tion towards a carbon-neutral society. The position of gas is also recognized in Finland’s newly-adopted Na-tional Energy and Climate Strategy that provides steer-ing towards ambitious energy and climate targets.

In 2016 natural gas consumption in Finland totaled around 24 TWh. Gas has maintained a significant posi-tion in Finnish energy use: viewing the nation’s energy production as a whole, the annual consumption of na-tural gas corresponds roughly to the amount of energy generated by four nuclear power stations.

Energy-efficient gas will continue to be a key com-ponent in the Finnish energy palette. We are proud to be able to offer our customers the most competitive gas pricing in Europe.

In 2017 our strategy will be advanced with even greater determination. We concluded an acquisition of biogas plant companies in Sweden in December. We are expanding our operations into the Swedish bi-ogas market while at the same time being able to offer our customers even more comprehensive renewable gas solutions in the Nordic countries.

Our operations are also growing into in Finland: cus-tomers in new regions such as Northern Ostrobothnia will be able to utilize more clean biogas once the ex-pansion of the Oulu biogas plant is completed in 2017. The Northern-Finnish energy infrastructure will also be diversified by the Tornio LNG terminal due to be oper-ational at the beginning of 2018.

With the gas ecosystem expanding, the number of Gasum employees has increased at a fast pace. Our family at Gasum has gained lots of new competent members. I am proud of your commitment and your outstanding contribution to the creation of a sustain-able energy future.

I would like to express my warmest thanks to all of our customers and employees for our rewarding co-operation. I look forward to our steps together towards a cleaner tomorrow.

Johanna Lamminen CEO

STEP BY STEP TOWARDS A CLEANER TOMORROW

We took purposeful measures to advance our strategy in 2016. Clear steps have been taken in the development of the Nordic gas ecosystem based on local

bio gas, liquefied natural gas and energy-efficient pipe-line natural gas.

The biogas market has developed rapidly during the past year. Biogas has become a more common choice as a clean alternative for transport, heating and industry. Thanks to our biogas plant network that was expanded nationwide, we are now Nordic countries’ leading processer of biodegradable waste and sup-plier of biogas.

Several circular economy innovations developed by us through partnerships have emerged from biogas. Ke-sko retail outlets’ food waste not suitable for human con-sumption is recycled into renewable biogas that is then used to make new Kesko own-brand Pirkka products.

Our partnership with the startup company Soilfood provides great benefits for Finnish food farming: Soil-food processes nutrient residues from biogas produc-tion into environmentally friendly targeted fertilizers for farmers.

Liquefied natural gas (LNG) brought a valuable addi-tion to the Finnish energy market when Finland’s first LNG import terminal was opened in Pori in autumn 2016. Our Nordic position was strengthened further during the year when ownership of the Risavika LNG production plant in Norway was transferred to the Gasum subsidiary Skangas.

The use of LNG does not result in any sulfur dioxide emissions at all and meets all of the stricter emission limits set by the International Maritime Organization (IMO). The rise of clean shipping can also be seen in the Gulf of Finland: Tallink’s new LNG-fueled fast ferry, Megastar, started to operate on the Helsinki-Tallinn route in January 2017.

Helping replace petroleum-based fuels, LNG also offers a new alternative for emission reductions in in-dustry and heavy-duty road transport. The first filling stations for heavy-duty road vehicles are already used by our customers in Helsinki and Turku. In 2017 the network will increase by another two stations.

C E O ’S R E V I E W

GASUM’S YEAR 2016 5

20

16

12

8

4

02013 2014 2015 2016

OPERATING PROFIT (%)

2013 2014 2015 2016

20

15

10

5

0

-5

RETURN ON EQUITY (%)

2013 2014 2015 2016

REVENUE (€ MILLION)

1,500

1,200

900

600

300

0

Growth in biogas and liquefied natural gas (LNG) consumption continued in 2016. Natural gas plays an important role in the transition towards a carbon-neutral society. In line with

the Gasum strategy, we continued to work purposefully for sustainable development: major investments were made in biogas and LNG, the gas filling station network was

expanded, and Gasum joined the Society’s Commitment to Sustainable Development and the new Energy Efficiency Agreement for Industries. There was also a strong focus on digitalization to make our company even more efficient and environmentally friendly. The year 2016 was also important for our human resources strategy: there was a major increase

in the number of Gasum employees due to our biogas business growth.

GASUM IN

2016KE Y F I G U R E S


KE Y F I G U R E S

2016 2015REVENUE

€843million

€915million

OPERATING PROFIT

€125million

€126 million

BALANCE SHEET TOTAL

€1,462million

€1,426million

CA P I TA L E X P E N D I T U R E O N F I X E D A S S E T S

€51.3million

€45.6 million

EQUITY RATIO

40.8per cent

39.4per cent

RETURN ON EQUITY

17.7% 19.8%EMPLOYEES

375 310

KEY FIGURES

5.8 TWh

SALES OF LNG BUSINESS

(2015: 5.7)

23.8 TWh

SALES OF NATURAL GAS

BUSINESS (2015: 25.9)

233.9 GWhSALES OF

BIOGAS BUSINESS (2015: 179.3)

261,000 tonnesAMOUNT OF

BIODEGRADABLE WASTE PROCESSED

IN FINLAND

19 GAS FILLING

STATIONS

2 GAS FILLING

STATIONS FOR HEAV Y-DUT Y

VEHICLES


OUR SUPPLY CHAIN

PRODUCTION, SOURCING AND SALESDiversification and active development of gas infrastructure and competitive

supply of gas.

USAGEDiverse use of natural gas and biogas in energy production, industry, homes and

land as well as maritime transport.

TRANSMISSION AND DISTRIBUTIONTransmission and distribution of gas with ex-cellent supply security and safety levels and

taking the customer into consideration. Emission-reducing solutions.

O R GA N I Z ATI O N A N D B U S I N E S S U N IT S

Gasum is a forerunner in sustainable Nordic energy solutions and circular economy. Our updated strategy responds to the opportu-nities and changes in the operating environ-

ment shaping the entire energy sector and aims towards a cleaner tomorrow through the expansion of the gas market.

Gasum’s mission is ”Cleaner energy” and our vision is ”Leading the Nordic gas ecosystem”. As stated in our value proposition, we are purposefully and responsibly moving towards new opportunities.

GAS IS PART OF SUSTAINABLE DEVELOPMENT

Gasum’s vision of a cleaner tomorrow will become a re-ality through new innovations and efficient gas solutions. Efficient gas solutions are a prerequisite for the achieve-ment of the emission targets set for Finland and for the realization of a clean energy future. In innovations Gasum is creating the new on top of the old as the natural gas and LNG infrastructures are suitable as they are also for biogas and liquefied biogas.

Key issues here are competitiveness, increasing aware-ness of the opportunities provided by gas, and active uti-lization of new opportunities. The four components of our strategy form the foundation for our operations and

BUSINESS FUNCTIONS GUIDED BY STRATEGY

CLEANER TOMORROW THROUGH EFFICIENT GAS SOLUTIONS

affect everything we do from customer work and invest-ments to advocacy and responsibility development.1. We promote sustainability2. We sell competitive gas3. We develop a smart gas system4. We build a new Gasum

BUSINESS BASED SOLIDLY ON FOUR CORNERSTONES

Gasum’s business units are Natural Gas, Biogas, LNG, and Technical Services.

We import natural gas to Finland for the needs of en-ergy production, industry, land and maritime transport, and homes. We produce and upgrade biogas made from biodegradable waste, and the Gasum subsidiary Skangas is the leading LNG expert in the Nordic countries. Oppor-tunities for gas use are expanded into new geographical areas by biogas and LNG, which can also be seen in the broadening of Finland’s energy portfolio: the country’s first LNG import terminal was completed in Pori in August 2016.

Our renewed strategy has clarified our vision and pro-vided guidance for action such as investment decisions paving the way for the Gasum of the future. The results are clear: in 2016 the sales of Finnish biogas increased by 54% in comparison with the year before. LNG deliveries also increased year-on-year.


STRATEGYJuha Häkämies

Strategy, digitalization, R&D, HSEQ

COMMUNICATIONSOlga Väisänen

Communications, Marketing,Public Affairs, Customer Service

LEGAL AFFAIRS, HRKristiina Vuori

Legal Affairs, HR

FINANCELasse Aarnio

Finance, IT

CHIEF EXECUTIVE OFFICER Johanna Lamminen

BIOGAS

Jukka Metsälä

TECHNICAL SERVICES

Jarko Alanko

NATURAL GASJouni

Haikarainen

LNG

Tor Morten Osmundsen

GASUM GROUP ORGANIZATION JAN 1, 2017

O R GA N I Z ATI O N A N D B U S I N E S S U N IT S

RESOURCE WISDOMIncreased efficiency in resource use is re-quired due to population growth and cli-

mate change, with a key role played by im-proved energy efficiency, storage of renewa-

ble energy, and the circular economy.

ACTIVE CUSTOMERSThe future will be characterized by con-

sumer awareness of their own consumption choices. Consumers will more and more ac-tively want to know the energy footprint of their purchase decisions and control their energy consumption, which will pave the

way for new energy technologies.

DIGITALIZATIONDigitalization will enable increases in op-erational efficiency for increased compet-itiveness and environmental friendliness as well as improved supply security and

predictability.

MEGATRENDS TRANSFORMING THE OPERATING ENVIRONMENT The Gasum strategy is based on the following global megatrends:


NO

RDIC ECOLABEL

HIGHLIGHTS IN 2016

MarchThe Gasum subsidiary Skangas

acquired the Norwegian Risavika LNG production plant from the

Lyse Group.

Gasum invested in biogas by acquiring Biovakka Oy, a Finnish

forerunner in the biogas sector and nutrient recycling.

AprilGasum and Soilfood started

cooperation in recycled nutrients.

Gasum announced plans to construct 35 new stations in the gas filling station network in the

coming years.

MayGasum joined Society’s Commitment

to Sustainable Development.

New biogas customers in the first half include the City of Helsinki energy company Helen, the furniture manufacturer Isku, Kaslink Foods, the steel industry company BE Group Oy Ab, the moving and logistics

company Niemi Services, Sauna Arla, Scandic hotels, the food company HoviRuoka, Bryggeri Helsinki brewery restaurant and REDI shopping center.

June–JulyThe historic first shipload of LNG arrived

at the Gasum subsidiary Skangas Pori LNG terminal in Finland.

Skangas made the first delivery of LNG to Finland’s first LNG-powered

icebreaker, Polaris.

JanuaryGasum biogas awarded

the Nordic Ecolabel for all of its uses.

FebruaryGasum invested in biogas by acquiring the Biotehdas chain of biogas plants.

The Finnish Ministry of Economic Affairs and Employment grants €5.38 million

in energy support to Gasum’s Riihimäki biogas plant, which is included in the

Government’s key projects.

Y E A R I N B R I E F


AugustFinland’s first heavy-duty road vehicle

gas filling station was opened at Helsinki’s Vuosaari harbor.

Gasum and Wärtsilä, a global leader in advanced technologies and complete lifecycle solutions

for the marine and energy markets, began cooperation in gas value chain development in

order to advance carbon neutrality.

SeptemberThe Gasum subsidiary Skangas opened

Finland’s first LNG terminal in Pori.

An investment decision was made to double the capacity of the Gasum Oulu

biogas plant.

NovemberThe first gas filling station in Finland

intended for cars, commercial vehicles as well as heavy-duty road vehicles was

opened in Turku.

The Visitor Centre of the food company Fazer in Vantaa, Finland, switched to biogas.

OctoberGasum is among the first

companies to join the new Energy Efficiency Agreement

for Industries.

The first ship, NEOT’s Ternsund, was bunkered at the Skangas Pori

LNG import terminal.

DecemberGasum purchased 100% of the shares of the biogas producer Swedish Biogas International.

The transaction was on January 2017 and it makes Gasum the biggest producer of biogas in

the Nordic countries.

Y E A R I N B R I E F


The production capacity of Risavika LNG

production plant is

300,000 tonnes/year

Risavika

Lysekil

Øra

Lidköping

DEVELOPING A SMART GAS SYSTEM

The Finnish energy market was diversified in 2016 thanks to the opening of the LNG terminal in Tahkoluoto, Pori. LNG enables deliveries to industrial

operators outside the gas pipeline network as well as for maritime and road transport. Improved access to energy-efficient and clean LNG is an important

step when we are moving towards a carbon-neutral society.

Gasum is also planning the construction of 35 new filling stations in Finland. The development of the gas infrastructure is vital for the expansion of

gas vehicle use: a comprehensive network will enable seamless and low-emissions driving on gas around Finland.

LNG terminal in operation LNG terminal under construction* LNG production plant Gasum, biogas Gasum, biowaste and biogas Biogas production plant **

* Manga LNG Oy joint project EPV Energia, Outokumpu, SSAB and Skangas

** Joint project

FINLAND'S MOST ENVIRONMENTALLY FRIENDLY LNG-POWERED ICEBREAKER

Skangas bunkered Polaris for the first time


new gas filling stations in the

near future.

GASUM WILL CONSTRUCT

35

FINLAND’S FIRST LNG IMPORT TERMINAL

was opened in Pori

2016IN AUGUST

Finland’s annual biogas production potential

up to

10–15 TWh/a.

300 GWh of biogas.

Gasum acquired five Swedish

biogas plants. Swedish Biogas

International producing annual

total

Pori

Tornio

PorvooTurku

VehmaaRiihimäki

Huittinen

Honkajoki

Kuopio

Oulu

VadsboKatrineholm

Västerås

Örebro

TampereImatra

THE FINNISH TRANSMISSION

PIPELINE NETWORK

Hyvinkää

Lohja

Espoo

Mäntsälä

Kotka

Kouvola

Helsinki

The use of natural gas in Finland

was

24 TWh/a

A major milestone was reached for Gasum’s strategy in September 2016 when Finland’s first LNG terminal was inaugurated in Pori. The Pori terminal opened the first sea route

to Finland for LNG, and the successful project was on the whole a major step towards a more diverse energy market in Finland.

The Pori terminal is the third terminal in the Nordic countries for the Gasum subsidiary Skangas, and new ones are likely to be seen in the future. LNG use will in-crease strongly in Finland in the near future.

TERMINAL SUPPLYING NATURAL GAS FOR USE NATIONWIDE IN FINLAND

Located at the Tahkoluoto chemicals harbor, the import terminal enables the supply of LNG for maritime trans-port as well as industry outside the gas network. This means the terminal is beneficial for the entire country, including areas not covered by the current natural gas

FINLAND’S FIRST LNG TERMINAL KICKS OFF

A NEW ERA FOR THE ENERGY MARKET

LN G I N F R A S TR U C T U R E

transmission pipeline network. LNG is also transported from Pori to other ports.

The terminal was completed ahead of schedule, and LNG deliveries to customers began right away. Customers receive LNG either in the regasified form transmitted via the local connecting pipeline or delivered by road tanker or by sea using LNG carriers.

ROUND-THE-YEAR SUPPLY CAPACITY – ENVIRONMENTALLY FRIENDLY ALTERNATIVE FOR SHIPPING

The Pori terminal provides an uninterrupted service around the year. All terminal equipment is duplicated, so there will be no downtime due to maintenance. The harbor is easily accessible by ships as the entrance is not obstructed by islands and the fairway is deep (15.3 m). The average customer spends 15 hours at the harbor, during which LNG is pumped via a 300-m pipe at an hourly rate of up to 1,500 m3.


LN G I N F R A S TR U C T U R E

Gas-powered vessels are a logical way for shipping companies and transport operators to comply with the latest environmental legislation. According to the sulfur emissions limits to enter into force in five years’ time, sulfur oxide emissions from ship exhausts must be reduced to below 20% of the current level. LNG also meets the nitro-gen limits and, at least in part, the carbon dioxide emis-sion targets possibly adopted in the future. In addition to being environmentally friendly, gas also helps reduce operating costs in the shipping industry.

Therefore the use of LNG is expected to increase not only in maritime transport but also in industry and road transport.

FIRST BUNKERING COMPLETED IN OCTOBERThe Pori terminal is the only place in the Gulf of Bothnia where bunkering can take place directly from the termi-nal, so the launch of bunkering at Pori kicked off a new era for Finnish maritime transport sector.

LNG INFRASTRUCTURE EXPANDING: LNG TERMINAL IN TORNIO, FINLAND, TO BE COMPLETED IN 2018THE LNG TERMINAL IN TORNIO, Finland, is due for com-pletion in spring 2018, which is when the first LNG deliveries will take place. The terminal is constructed in cooperation between Gasum and its partner Manga LNG. Located in Tornio’s Röyttä harbor, the terminal will have reception, unloading and bunkering facilities for large LNG ships, regasification equipment for liquefied natural gas, and a 50,000 m3 storage tank. The Tornio terminal will support not only the Gasum strategy but also the EU’s Clean Power for Transport Package according to which LNG fueling facilities for vessels will be installed in all major EU ports and refueling stations for heavy-duty road vehicles will be established within distances not ex- ceeding 400 km.

The Tornio LNG terminal will provide the North with a new and clean energy alternative that helps protect the region’s unique natural environment. The Outokumpu Tornio steel mill and the SSAB Raahe steel mill have al-ready announced their switch to LNG, paving the way for the arrival of a cleaner form of energy.

MARITIME TRANSPORT is switching to

liquefied natural gas (LNG): almost all

new ships entering into service in the

Baltic Sea use LNG as their primary fuel.

The Finnish icebreaking service company

Arctia’s brand-new Polaris is the world’s

first LNG-fueled icebreaker. The rise of

Finnish LNG-fueled vessels in the Baltic

Sea is made possible by Gasum.

LNG SHIPS – THE NORM FOR THE FUTURE

Switching to LNG is a significant step for

ships as regards emission cuts because,

for example, the Viking Line passenger

ferry M/S Viking Grace uses an annual

volume of LNG corresponding to the fuel

consumption of around 20,000 cars. This

means shipping investments in LNG in-

crease environmental benefits as well as

LNG volumes, which then helps improve

access to LNG and strengthen its distribu-

tion network.

Launched in 2013, M/S Viking Grace was

the first large passenger ship of its kind to

be powered on LNG. More orders for LNG

ships to sail the Finnish waters have since

been placed, with the latest addition to

the Baltic’s fleet of LNG-fueled ferries be-

ing the Tallink fast ferry Megastar that

started to operate on the Helsinki–Tallinn

route in January 2017.

RATE OF CHANGE ACCELERATED BY LNG TERMINALS

There are already hundreds of LNG-pow-

ered passenger and cargo ships sailing

the world’s seas, and in countries such as

Norway the shipping use of LNG is already

commonplace. According to the Finnish

Shipowners’ Association, its members have

a total of two LNG ships in operation, in-

cluding Polaris. The third one is the Border

Guard’s patrol vessel Turva. Another nine

LNG vessels are currently under construc-

tion. Shipyards are already installing LNG

engines as the default option. In the future

maritime transport is anticipated to gradu-

ally phase in fully emission-free local bio gas.

GOODBYE TO BLACK SMOKE – POLARIS CHANGED THE GAME


LNG – A CLEANLY BETTER FUELLIQUEFIED NATURAL GAS (LNG) is natural gas that has been converted to liquid form. LNG can replace petroleum-based fuels in maritime trans-port, industry, heavy-duty road transport and energy production. Natural gas stays in the liq-uid phase if cooled to -162 °C. This is why it needs to be transported in a purpose-built insulated carrier. Once liquefied, natural gas only occupies 1/600 of the gaseous volume. This enables the transport of LNG by carrier or road tanker over long distances without any transmission pipe-lines or pumping stations. Before being used as a fuel, LNG is regasified.

The biggest advantage of LNG is its environ-mental friendliness. LNG is the cleanest fossil fuel. Its CO2 emissions are more than 20% lower and nitrogen emissions 85% lower than those from other fossil alternatives. LNG is also a fully sul-fur-free fuel. The production process is efficient from the customer perspective, and the mainte-nance and operating costs are low.

GASUM TECHNICAL SERVICES NOW OPERATING NATIONWIDE IN FINLANDWITH THE GAS ECOSYSTEM GROWING, the de-mand for gas technology professionals is also in-creasing. Gasum Technical Services was involved ever since the groundwork phase in the prepara-tions for the commissioning of the Pori terminal.

LNG, biogas and the road fuel filling station net-work are expanding the scope of our Techni-

cal Services from within the gas pipeline network into a nationwide operation.

In 2016 the network of partners was developed to ensure service pro-

vision to a growing number of customers.

LN G F O R M A R ITI M E TR A N S P O R T

Bunkering from road tankers is also becoming more common around Finland, making it easier for shipping companies to achieve their environmental objectives.

The first vessel – the product tanker Ternsund – was bun-kered in a quick and safe operation in October. Ternsund is the first of four new LNG-fueled vessels owned by the shipowner Terntank and operated by the Finnish company North Euro-pean Oil Trade (NEOT).

”We’re very satisfied that we now have the opportunity to bunker LNG in Finland right beside one of our terminals. We will run Ternsund both along the Finnish and Norwegian coast as well as in the Gothenburg area. It’s advantageous for us that Skangas can offer bunkering at several locations where we trade in Finland, Norway as well as Sweden,” says NEOT Char-tering Manager Satu Mattila.

”LNG has been a hot potato for the sector for a long time. There have been doubts about the Baltic Sea LNG infrastruc-ture, and there was a long period with a kind of deadlock sit-uation between demand and supply. Because we know our routes in advance, we were able to have confidence in the eventual development of the infrastructure – which is exactly what has happened now. The quality of LNG has also now been proven, and the environmental benefits can also be seen by us at ports as lower operating costs,” Mattila continues.

”Our work with Skangas has been effortless and the learning curve has been steep. The sector’s undergoing a clear trans-formation as fossil fuels are being replaced by more sustaina-ble alternatives. In ten years’ time we’ll hopefully already have progressed really far in this development,” Mattila sums up.


A leading producer of wood-based chemicals in the world, the Norwegian Borregaard Group’s mission is to replace

oil-based products with those produced from wood. The company’s flagship is the Sarpsborg biorefinery, which makes prod-ucts including specialty cellulose, vanillin, lignin and bioethanol. Borregaard became

a Skangas LNG customer in 2013. The de-cision was based not only on emission tar-gets but also on cost considerations. At the same time the company is also focusing on waste-to-energy implementation.

“We have been exploring sustainable energy solutions for the past 15 years. Re-cent developments such as the Paris cli-mate targets have strengthened our re-

solve on this matter, and we regard natu-ral energy gases as important elements in our energy mix,” says Borregaard Energy Director Jostein Røynesdal.

Borregaard views shortage of infra-structure as the biggest challenge to the mainstreaming of LNG. Cooperation with Skangas has been smooth, and the com-pany finds LNG easy to use.

BORREGAARD AIMING HIGH

“We have been exploring sustainable energy solutions for the past 15 years. Recent

developments such as the Paris climate targets have strengthened our resolve on this matter, and we regard natural energy gases as important elements in our energy mix.”

LN G F O R I N D U S TRY


CONTAINER-SHIPS IN BRIEF:∙ Fleet of 16,000 marine containers

∙ Around 150 trucks and 11 ships

∙ 600 employees∙ Offices in 21 countries∙ Listed on the stock exchange in 2015

∙ Aims at 10% annual growth

S O LU TI O N S F O R L A N D TR A N S P O R T


Founded in 1966, Containerships is a Finnish family-owned logistics business that took its first truck fueled exclusively on LNG into test use in 2013. Due to limited access to

LNG, the truck soon had to be relocated to Rotter-dam, from where it returned to Finland in summer 2016. The return was made possible by the comple-tion of Gasum’s filling station in Vuosaari, Helsinki, with the decision also made easier thanks to good results obtained in a trial program in Britain. The truck is used to transport containers in Southern Finland. The range of the LNG-fueled heavy vehicle is 600 km at a time.

At the moment Containerships has 34 dual-fuel vehicles running on LNG in Britain, and the num-ber will increase by six by the end of the year.

”This is about our firm determination to move towards a carbon-neutral alternative. We’ve found LNG to be safe, and the fill-up intervals are also com-parable to those of the diesel fleet,” says Contain-erships Land Operations Manager Tomi Piskunen.

”We’re on the road towards responsible trans-port. We’ve been happy to notice that our clients are proud to mention our LNG truck in their own

CONTAINERSHIPS INVESTS IN THE FUTURE

materials as well. Our aim is to be able to trans-port products from every corner of Europe to Finland emission free. For land transport this is already a reality between Britain and Finland – pickups in Britain and land deliveries at the Finnish end all take place cleanly with LNG,” says Piskunen. With LNG-powered ships the entire transport chain will be fueled by LNG in 2018.

Gasum is developing the heavy-duty vehi-cle station network: the new Vantaa and Jyväskylä filling stations will be com-pleted this year, and two more have already been announced. This ex-tends the operating area of the Containerships gas truck, mak-ing the company able to serve the entire country soon.

It is hoped that ancillary services for driver wellbeing will be made available in conjunction with stations. Gasum seeks to in-troduce LNG refueling points at existing service stations as well.

”LNG is the strategy chosen by Containerships for the future,” Piskunen sums up.

CONTAINERSHIPS HOPES to see govern-ment support to LNG projects.

”When getting something done is down to your own effort, it means projects span-ning several years. The environment would be thankful if access to financial support was easier,” Piskunen points out.

HOPING TO SEE LEGISLATION AMENDEDLNG projects receive government sup-

port in the company’s other operating country, Britain, and over there LNG trucks are already a much more common sight on the roads.

Gasum and Containerships are making a joint effort to advance reductions in tax-

ation on driving power and the expansion of the filling station network to make envi-ronmentally friendly LNG more commonly used.

”These changes would have an immedi- ate impact of the status of the environment – today and tomorrow,” Piskunen says.

Containerships is glad about the development of the gas filling station network for heavy-duty vehicles because that will extend the operating range of the company’s LNG-fueled truck to nationwide coverage.

S O LU TI O N S F O R L A N D TR A N S P O R T


BIOGAS BECOMING MAINSTREAM –

NIEMI SERVICES NOW MAKING

CLEAN MOVESMore and more companies are choosing the greener alternative

for their logistics. One of the biggest is Niemi Palvelut.

S O LU TI O N S F O R TR A N S P O R T


Helsinki Metropolitan Area

Jepua

Jyväskylä

Leppävesi

HämeenlinnaForssa Riihimäki

Hyvinkää Mäntsälä

Porvoo

Tampere

Turku

Lempäälä

LahtiKouvola

HaminaKotka

Lohja

Pori

Vaasa

Oulu

Järvenpää

Joutsa

Imatra

Lappeenranta

37

2

22

ENG kartta

Vaasa

In May, Niemi Services, Finland’s leading service provider in moving and logistics, took an impor-tant step towards cleaner transport by getting moving vehicles fueled with 100% Finnish Gasum

biogas. This makes it the first player in Finland to of-fer clean and ecological biogas moves.

The Niemi fleet now includes 15 biogas vehicles, two of which are large 18-tonne Volvo trucks. The biogas-fueled moving vehicles are used alongside the traditional fleet in Helsinki and around the cap-ital region. The company also aims to increase the number of gas vehicles as the gas distribution net-work expands. The company’s aim is reaffirmed by inquiries made by customers about biogas vehicles.

“As the market leader we wish to act as a forerun-ner and lead the way for other enterprises in our sec-tor. We monitor the key environmental impacts of our work and develop our operations according to the principle of continuous improvement to mini-mize any environmental burden caused by us,” says Niemi Director Juha Niemi.

“We’re very happy about our biogas cooperation with Niemi Services. Today’s consumers are increas-ingly aware about sustainability. It’s great that Niemi Services wishes to be a forerunner in Finland and offer consumers cleaner transport and moves. At the same time the company contributes toward reductions in carbon dioxide and local emissions by securing cleaner air for people to breathe,” says Gasum CEO Johanna Lamminen.

SUPPORT NEEDED FOR GREEN TRANSPORT

The Executive Director of Niemi Services Ilpo Niemi flies the flag high for a more extensive filling station

BIOGAS IS a local biofuel always made from fully re-newable feedstocks.The Gasum Group’s 12 bio-gas plants are located in Huittinen, Honkajoki, Kuo-pio, Oulu, Riihimäki, Turku and Vehmaa, Finland, and Jordberga, Katrineholm, Lidköping, Örebro and Västerås, Sweden. In ad-dition, Gasum has a 50% shareholding in Vadsbo Biogas in Sweden. Gasum also produces biogas with partners in Espoo, Kouvola and Lahti, Finland.

network and improved conditions for gas vehi-cle use.

“The government should use tax measures to support more environmentally friendly trans-port and make the situation easier for biogas and electric cars – be it through car tax or the excise duty on fuels. In countries like Sweden the num-ber of biogas vehicles is many times higher than over here.”

BIOGAS THE ONLY OPTIONEnvironmental values and reducing transport emissions play a key role for the company. Ac-cording to Niemi, in this respect biogas was an obvious choice and actually the only option.

“Biogas is a 100% Finnish and renewable fuel with zero fine particulate emissions. There aren’t really any other corresponding fuel options avail-able for heavy-duty road vehicles – at least not ones that are 100% Finnish. Local sourcing is very important to us. After all, our company was awarded the Made in Finland Key Flag Symbol in 2015.”

BIOGAS IS MADE FROM BIODEGRADABLE WASTE

Gasum filling station Other operator’s filling station

Gasum’s filling station under planning

GAS VEHICLE FILLING STATIONS IN FINLAND (28)

S O LU TI O N S F O R TR A N S P O R T


PLENTY OF STRATEGIC POTENTIAL IN CIRCULAR ECONOMY

In the circular economy materials wastage and waste generation is minimized and wastes and side streams are circulated comprehensively back into raw materials through nutrient recycling. Gasum’s biogas production is a model example of well-functioning circular economy. This entails broad systemic change where wastes that used to be seen as cost items are turned into energy

and useful products while at the same time being environmentally sound.

Through partnerships and acquisitions we have created a framework for our Biogas business that covers gas solutions for transport and industry, processing of biodegradable waste, and

utilization of nutrient residues with the help of our partner as fertilizers. This means the circular economy has become an integral part of our story in all customer segments, and there is

plenty of potential for growth. Demand for circular economy solutions has increased, and added value for our customers is always generated by our agile experiments.

LNG

is the first European built LNG bunkering ship of Skangas

LNG IMPORT TERMINAL

Serving heavy-duty vehicles and industry and

maritime transport

LNG FILLING STATIONS FOR HEAVY-DUTY

VEHICLES Providing improved

access to lower-emissions energy

in heavy-duty road transport


CORALIUS

BIO

GA

S, N

ATU

RA

L GA

S

LNG

BIO

GA

S,

Digestates generated in biogas production

are processed into FERTILIZERS FOR

LOCAL FARMS AND INDUSTRY

INDUSTRIAL USE AND COMBINED HEAT AND POWER

(CHP) production with cleaner energy,

biogas and natural gasGAS FILLING STATIONS

fill-up biogas or natural gas

RETAIL OUTLET produces products

with biogas and natural gas

The biogas plants process

BIODEGRADABLE WASTE, MANURE

AND CROPS

NATURAL GAS


Biowaste products collected through-

out the country end up at a Gasum

biogas plant.

B I O GA S F O R A C LE A N E R TO M O R R OW

LOCAL ENERGY FROM WASTE

Gasum is the biggest processer of biodegradable fractions in the Nordic countries. Every year hundreds of thousands

of tonnes of biodegradable materials are treated by biogas plants in Finland, pro-cessing these into biogas and recycled nutrients. The aim is to expand the biogas market to the terawatt-hours range at the annual level in Finland by 2025.

RISE TO NUMBER ONE IN THE NORDICS

Gasum purchased 100% of the shares of the Swedish biogas producer Swedish Bio gas International, which made Gasum the biggest biogas producer in the Nordic countries in January 2017 acquiring the ownership of five biogas plants, located in Jordberga, Katrineholm, Lidköping, Öre-bro and Västerås. In addition, Gasum has a 50% shareholding in Vadsbo Biogas in Sweden. The current annual production of the Swedish plants is around 300 GWh, and this biogas is mainly used as a road

and logistics solutions are important components in the journey towards a carbon-neutral society. There is consid-erable potential in Finland alone. The feedstock base used in biogas produc-tion is sustainable and broad, ranging from industrial and municipal sewage sludge to solid biodegradable waste such as cattle manure, and solid bio-waste from homes and industry that would otherwise end up in incineration, landfill sites or composting. At the mo-ment of lot of sludge is taken to incin-eration, and the majority of single- and two-family houses are not obliged to collect biowaste separately. This means, for example, that up to one-third of mixed waste consists of biodegradable waste that could be used as feedstock at biogas plants. According to analyses, adding field biomass, cattle manure and wood-based biomass to this takes Finland’s annual biogas production po-tential to up to 10–15 TWh/a.

fuel. With the investment Gasum is im-proving access to biogas, particularly in areas outside the gas pipeline network, increasing waste treatment capacity and enabling the development of regional gas solutions and even more comprehensive service provision for its customers.

Gasum now has a total of 12 biogas plants and 3 partner plants. The Finnish biogas plants (7) are located in Honka-joki, Huittinen, Kuopio, Oulu, Riihimäki, Turku and Vehmaa. The partner plants are located in Espoo, Kouvola and Lahti. The biogas plants process sewage sludge from wastewater treatment plants, side streams from food industry, biowaste from homes, and inedible food waste from all Finnish food chains.

BIOGAS HAS ENORMOUS POTENTIAL FOR GROWTH

Biogas is an important part of the Gasum strategy, with investments in the Biogas business so far totaling €100 million. In addition to energy, waste management

DAIRY FACTORY

WASTE TRANSPORT

WASTE TRANSPORTBIOGAS PLANT

COMBINED HEAT AND POWER (CHP)

PRODUCTION

MILK DELIVERY

FOOD INDUSTRY, RETAIL OUTLET


Photo: Valio

Almost half of Valio’s cheese products are made at the com-pany’s Lapinlahti plant in Fin-land. The whey remaining as a

byproduct of cheese manufacture used to end up as pig feed and is also commonly regarded as waste elsewhere in the world, but the Finnish dairy company Valio pro-cesses it further into valuable ingredients for infant formula that it exports to more than 30 countries.

Whey not suitable for further pro-cessing is taken as side streams to Gasum’s Kuopio biogas plant. The part-nership between Gasum and Valio be-gan in early 2016. Valio wanted to im-

prove its productivity and supply secu-rity through cooperation because the processing of components not suitable for food manufacture made the facto-ry’s processes unnecessarily cumber-some. The company has now been able to free up resources for the actual pro-duction process.

”Valio’s side fractions are turned into energy and fertilizers used in lo-cal fields in the same region where our milk comes from. This, if anything, is a prime example of the circular econ-omy,” says Lapinlahti Plant Director Kari Lappi.

VALIO BYPRODUCTS MADE INTO BABY FOOD AND BIOGAS

B I O GA S F O R A C LE A N E R TO M O R R OW


Things are happening around nat-ural gas. The opening of the Pori LNG terminal provided broader access to natural gas in Finland,

including in areas outside the pipeline network, and the first LNG filling stations for heavy-duty road vehicles were opened in Helsinki and Turku.

Gasum’s traditional natural gas busi-ness helps build a bridge to a cleaner to-morrow. Natural gas is a low-carbon alter-native compared with coal and oil. Our customers also appreciate the supply se-curity and flexibility of gas. Despite this, the position of gas has been weakened in Fin-land’s energy and climate policy through measures such as increasing its taxation in heat production.

The price of natural gas was highly com-petitive in European comparison during the year under review in Finland, and Gasum is making every effort to maintain this competitive advantage. We are work-ing very hard to prevent any further obsta-cles to gas use. Natural gas has an impor-tant role as an industrial raw material, and the well-functioning transmission network also enables the increasing transmission of biogas for industrial customers.

STEEL MILL RUNNING ON NATURAL GASOperating in Imatra, Finland, Ovako Ima-tra Oy Ab is one of Gasum’s oldest part-ners – cooperating with us for the past four decades since the mid-1970s. Ovako is a leading European producer of engineering steel for customers in the bearing, trans-port and manufacturing industries. The Ovako Group is also the largest consumer of recycled scrap in the Nordic countries.

The primary reason for the switch from oil to natural gas all those years ago was the location of Ovako Imatra. The plant is close to the natural gas pipeline crossing the Finnish-Russian border, which has made natural gas a logistically easily accessible solution to the plant’s varying needs. The transition required combustion technology alterations, and oil burners were replaced by gas burners. Today most of the plant’s current equipment is built to natural gas specifications, and natural gas is the big-gest source of energy for the Imatra plant.

Ovako Imatra uses natural gas for many different purposes: for billet heating, in melting furnaces, heat treatment furnaces, steam boilers, flame-cutting and property heating.

Ovako Imatra is particularly happy about Gasum’s supply security and expertise in technical natural gas work. The use of nat-ural gas is also easier than that of other fu-els such as oil as the technology is simpler.

At Ovako by-products and waste are uti-lized in various processes as recycled ma-terials. The strongly forward-looking plant also regards the use of biogas alongside natural gas as an interesting option for cer-tain product lines.

NATURAL GAS BUILDING A

BRIDGE

The price of natural gas was highly competitive

in European comparison during the year under review in Finland, and

Gasum is making every effort to maintain this

competitive advantage.

S U P P LY-S E C U R E A N D F LE XI B LE N AT U R A L GA S

Photo: O

vako Ste

el/Pete

r Philli

ps


Photo: Stora Enso

The provider of renewable pack-aging, biomaterials, wood and paper solutions Stora Enso is a long-time natural gas customer.

The company started to use natural gas in 1973 at the Honkalahti Sawmill in Jout-seno, Finland. This is the first known oc-casion of natural gas combustion in Fin-land.

Stora Enso uses natural gas primarily at its Eastern Finnish production facilities as a process and power plant fuel.

The company’s criteria for its suppliers include operational reliability and sup-

ply security, transparent and reasonable pricing, and good quality. Stora Enso’s re-sponsibility requirements are among the key performance indicators concerning suppliers that are monitored actively.

”Our cooperation with Gasum has worked well, and what we also appre-ciate in Gasum is the customer-driven approach, in which the company has shown continuous development. We look forward to the future development of the Finnish gas market,” says Elina Seppälä, Director, Energy Sourcing, from Stora Enso.

STORA ENSO HAS LONG EXPERIENCE IN NATURAL GAS USE IN FINLAND

S U P P LY-S E C U R E A N D F LE XI B LE N AT U R A L GA S


OUR CORPORATE RESPONSIBILITY

PROGRAM Our Corporate Responsibility Program promotes sustainability in line with

the Gasum strategy. For us responsibility means taking economic, social and environmental responsibility into account. In our Corporate Responsibility

Program we have summarized our key corporate responsibility issues into four themes and related corporate responsibility objectives set in 2016.



BETTER SOCIETY WITH OUR STAKEHOLDERS

• Openness, transparency and active dialog• Investments and taxes

• Personnel wellbeing and competences

OBJECTIVES• Investing in the Nordic countries and contributing

towards strengthening the national trade balance• Developing our competences in order to implement

our strategy in a changing operating environment

FORERUNNER IN SAFETY AND SUPPLY SECURITY

• Promoting safe use of gas• Corporate and personnel security

• Supply reliability

OBJECTIVES• Achieving zero injuries and accidents at work

• Achieving zero unforeseen delivery disruptions in gas supply

UNDERSTANDING LIFE-CYCLE IMPACTS

• Supply chain efficiency and impacts• Product use impacts

• Supplier responsibility

OBJECTIVES• Promoting the transition to a low-carbon society

• Achieving through energy saving actions a reduction of 7.5% from the 2015 level in energy

consumption by 2025• Ensuring the realization of responsibility in the

supply chain together with our suppliers

CARBON-NEUTRAL FUTURE AND INNOVATIONS

• Emission-reducing solutions• Expansion of the gas market

• Development of new business models and partnerships

• Competitiveness of gas

OBJECTIVES• Targeting R&D to increase biobased production

and improve energy efficiency• Expanding the biogas market to the terawatt-hours range at the annual level

in Finland by 2025• Creating new business partnerships and

utilizing new technologies

CO R P O R ATE R E S P O N S I B I LIT Y

FUTURE BECOMES A REALITY THROUGH ACTION

As a forerunner in the energy sector, Gasum is in-vesting in development, research and innova-tions. In the Gasum vision, coal will have been phased out, biogas will have gained a signifi-

cant role in Nordic energy production, a switch to clean energy will have taken place in maritime and road trans-port in the Baltic Sea region, and the energy-efficient storage of renewable energy will have become possible. The hydrogen economy will also have gained ground.

DIGITALITY AT THE FOREFRONT“Digitalization enables us to increase the efficiency of our own operations to an even more environmentally friendly level through actions such as optimizing logis-tics, facilitating data collection and measurement, and

developing modeling. This improves supply security and predictability and generates cost savings for our customers. We’re also building solutions utilizing digi-talization for our customers,” says Juha Häkämies, Vice President, Strategy.

Digitality also opens doors to the improved moni-toring of the generation of waste fractions, making it easier to direct them to the right place for processing. Targeting the production of renewable gas at the right consumption sites is also important.

IMPORTANT ROLE PLAYED BY DEVELOPMENT WORK

Gasum is supporting gas-related research and devel-opment work through several international and Finn-

Gasum is building a cleaner tomorrow through agile and purposeful measures independently as well as in Finnish and international networks.

SOILFOOD AND GASUM launched their cooperation in the production of recycled fertilizers in conjunction with the Oulu and Riihimäki biogas plants. Soilfood pro-cesses digestates from biogas production into recycled fertilizers for agriculture. Recycled fertilization is offered to farmers as a full service tailored to their soil and plant needs and even includes field ap-plication. Nutrient-rich sludge is used to replace chemical fertilizer products.

RECYCLED FERTILIZER COOPERATION BETWEEN SOILFOOD AND GASUM

“Soilfood’s fertilizers and soil condi-tioners can at the same time improve soil fertility and agricultural profitabil-ity as well as reduce emissions and fix carbon in the soil”, says Saara Kankaan-rinta, co-founder of Soilfood Oy.

“Looking after the soil is the best in-vestment a farmer can make. We can also guarantee our products a lower price per hectare than with chemical fertilizers,” says Eljas Jokinen, CEO of Soilfood Oy.

These recycled fertilizers are manufac-tured in compliance with the Act on Fer-tiliser Products, and their hygiene quality, cleanness and product safety are moni-tored through the own-checks system.

For Gasum this cooperation with Soil-food is part of the broader partnership that began in spring 2016 and a continu-ation to the circular economy thinking in line with our strategy.



ish cutting-edge research projects. Development work also takes place in partner networks with cus-

tomers and feedstock suppliers. In 2016 research grants totaling €108,000 were is-

sued from the Gasum Gas Fund. Renewal arising through technology development

slots smoothly into Gasum’s business and internal pro-cesses. R&D seeks to serve business functions by direct-ing supply in the renewable energy market. Investments in R&D can also be seen in recruitments to increase com-petencies in fields such as renewable gas production.

GASUM CONTINUES TO LEAD THE WAY IN ENERGY EFFICIENCY

Gasum is improving the energy efficiency of operations, products and services through a certified ISO 50001 en-ergy management system (EnMS). Energy efficiency and operational reliability were improved during the year through operational optimization and replacement of pressure reduction station boilers and blowdown valves. A Bachelor’s thesis was also produced in 2016 on EnMS development, focusing on the development of reporting templates for energy efficiency monitoring and docu-mentation. Energy efficiency indicators, development ideas as well as new objectives and potential energy sav-ings were discovered through interviews with Gasum’s Energy Contact Persons.

In September, Gasum was among the first compa-nies to join the new Energy Efficiency Agreement for Industries for the 2017–2025 period. The voluntary En-ergy Efficiency Agreements are a tool chosen together by the Government and industries to fulfil the inter-national obligations set for Finland without enacting new legislation. The responsible and efficient use of en-ergy reduces carbon dioxide emissions causing climate

Energy efficiency and operational reliability were improved during

the year through operational optimization and replacement of pressure reduction station boilers

and blowdown valves.

change. Gasum has made a commitment to the shared 7.5% energy savings target under the Action Plan for the Energy-Intensive Industry. Gasum’s energy management is guided by the targets set under the Energy Efficiency Agreement.

NEW WAYS TO MAP OUT METHANE EMISSIONS

We seek to minimize our greenhouse gas emissions and pay particular attention to the share of methane emis-sions. One of our important development areas has been to find even more efficient and reliable ways to map out methane emissions.

In this we have cooperated with the emissions meas-urement technology development company Aeromon, and the results from the first test measurements con-ducted in 2016 are promising. We will continue the ap-plication of the method with plant-level testing to eval-uate its suitability for use on larger structural entities.


The year 2016 will remain in history as a year of major energy and climate policy decisions. The global Paris Agreement on climate change entered into force in late 2016, and important

energy policies were outlined nationally as well as at the European Union level.

In the first half the European Commission focused on top-level goals. In its summer package, the Com-mission outlined the rates of cuts on emissions from non-emissions trading scheme sources each Member State should achieve in 2021–2030. The target set for Finland is a 39% reduction from 2005 emission levels.

Published towards the end of the year, the Commis-sion’s winter package proposed a set of measures for the energy sector to keep the EU competitive. One of the concrete proposals for a revised Directive reinforces the current EU sustainability criteria on bioenergy and extends their scope to also cover biogas.

In Finnish policy-making the energy debate was dominated by the preparation of the new National En-ergy and Climate Strategy. Published in November, the strategy acknowledges the important role played by

CLEAN GAS SOLUTIONS SUPPORTING NEW ENERGY AND CLIMATE POLICYSteps are being taken in energy and climate policy at every decision-making level towards a low-carbon society. Versatile gas plays an important role in the achievement of ambitious emission targets.



gas during the period of transition towards a carbon-free energy system. The target set for renewable energy is in part based on the increased production and use of re-newable gas, which increases the significance of gas in the Finnish energy system.

The strategy also creates a strong foundation for the rapidly developing biogas market. In the future, biogas will have an even more central role as a transport fuel in particular: the aim is for Finland to have at least 50,000 gas-fueled vehicles in 2030.

Transport is the biggest polluter among the non-emis-sions trading scheme sectors, and measures to address this are at the core of national as well as EU-level poli-cy-making. Increasing the transport use of gas on land and at sea is one of the key ways of reducing transport emissions.

A lot has already taken place: The number of LNG-pow-ered vessels is increasing rapidly in maritime transport. The Finnish target of 50,000 gas vehicles is a good start for cleaner road transport. Clear steps forward also include the LNG filling stations aimed at heavy-duty road vehicles, of which there will be four in Finland by the end of 2017.

Gas plays an obvious role as a fuel replacing high-emission energy sources. For example, in com-bined heat and power (CHP) production, natural gas is the quickest and most cost-effective way to replace coal. Despite the carbon dioxide emissions from nat-ural gas being 40% lower than those from coal, Fin-land’s current steering methods have not managed to provide incentives to replace coal.

The Finnish gas infrastructure has been expanded significantly by the Pori LNG import terminal. LNG provides a new way of replacing oil-based fuels in such industrial uses where this used to be logisti-cally impossible. This development will continue in 2018 when the LNG terminal due to open in Tornio, Finland, will diversify the Northern Finnish energy palette.

As well as facilitating a low-carbon transition pe-riod, the Nordic gas ecosystem is already reaching for a carbon-free society. The current gas network can be utilized for biogas, liquefied biogas and in the future also syngas. As a bridge-builder, gas plays a decisive role in energy and climate policy.

The aim is for

Finland to have at least 50,000

gas-fueled vehicles in

2030.



NEW WAYS TO IMPROVE OCCUPATIONAL HEALTH AND SAFETY

In line with the Gasum strategy, we are strengthening our Safety First culture. Our objective is that no damage or ac-cidents take place in our activities or

the end use of natural energy gases. Our corporate safety and security culture is responsible, proactive and learning: each Gasum employee is encouraged to antic-ipate and consider safety and security is-sues in their own work.

SAFETY AND SECURITY AS PART OF PROFESSIONAL COMPETENCE

Gasum is continuously developing tools and methods to improve safety and secu-rity. Our maintenance continued the use of the instant risk prevention tool intro-duced last year. The tool encourages to

take a brief moment to think before be-ginning each task. Gasum also uses the Safety TAVA system for work safety man-agement and reporting to collect safety observations.

Other actions include the safety and security online course and staff lunches on the theme. Intended for our employ-ees and partners, the online course covers basic safety and security issues as well as safe working methods. Gasum is also pi-loting mobile tools for safety inspections and audits.

GASUM SAFETY CULTURE ROADMAP COMING UP

A total of 17 accidents, of which 7 resulted in more than a day off work, took place in 2016.

Safety is not only at the core of Gasum’s strategy but also vital for its success. Occupational health and safety is being developed actively. In safety and security, key roles are played by awareness and attitude. The security of gas supply is at an excellent level in Finland.

”The contribution of every single one of us at Gasum is important. Gasum expects everyone to have a safety-first attitude, take responsibility and care for co-work-ers and the working environment,” says Gasum Group HSE Manager Aki Huomo.

Occupational health and safety issues are monitored as regards number of ac-cidents, lost time injury rate, safety obser-vations reported as well as actions taken in response to them.

”Even a single accident is one too many. We’ve organized safety info events and launched regular safety meetups held by supervisors as well as a Gasum-wide safety culture roadmap.”

A new measure launched in 2016 was online staff training in cybersecu-



GASUM IS A KEY ELEMENT of the energy supply infrastructure of the Finnish society. This position assigns us with responsibility for safety and security in the entire sector, all the way to the end users of gas. We ex-ercise this responsibility in contexts including stakeholder advocacy, statements to authorities and many types of collaboration taking place in organizations.

rity based on one hand on Gasum’s role as a critical player in society and on the other on the ongoing debate on the topic. The development of the entity of cybersecurity measures will also con-tinue this year.

GAS SUPPLY SECURITY AT EXCELLENT LEVEL

Spanning more than 40 years, our coop-eration with the gas supplier enables ex-cellent supply security of natural gas. The supply security of natural gas has been at an extremely high level throughout these decades.

In addition to our trusted supplier, key roles are also played by our sys-tematic and preventative maintenance work, continuous gas network monitor-ing, real-time alerts and duplication of equipment. Digitalization is expected to bring about new opportunities in tasks such as network monitoring, data col-lection and analysis as well as mainte-nance work.

Incidents and threats are analyzed, and corrective measures are taken in response. Supply disruptions are ex-tremely rare. In 2016 the amount of gas not delivered was only 0.606 Gwh (cor-responding to 0.0025% of the total vol-ume of gas transmitted).

OPPORTUNITIES PROVIDED BY DIGITALIZATION

”New digital solutions help us find po-tential areas in need of development more easily than before. Digitalization may also bring about innovations as regards the tools we work with – per-haps one day we might be able to use smartglasses with safety instructions displayed in front of our eyes,” Huomo sums up.

Supply security is also improved fur-ther by the expansion of the gas mar-ket and the utilization of the Nordic gas ecosystem in line with the Gasum strat-egy.

THE CONCRETE DOME IN PORI would fit a cup of coffee for every day of the year for 103,000 people. Fin-land’s first-ever LNG terminal is his-toric in its own right, but the outstand-ing level of safety maintained during the construction process is at least as historic as an achievement.

An exceptional focus was placed on staff training, and the site was su-pervised by a special on-site safety officer. Safety was also ensured by strong partners, management com-mitment and special encouragement to report safety observations. This helped achieve zero accidents result-ing in time off work.

OUTSTANDING LEVEL OF SAFETY IN PORI LNG TERMINAL CONSTRUCTION WORK

GASUM BEARS RESPONSIBILITY FOR SAFETY AND SECURITY IN THE ENTIRE SECTOR



As an expert in the energy sec-tor, at Gasum we offer unique opportunities for top talents and also train our employees

for roles for which you cannot prepare at school. For us competence development is a sustained process based on our stra-tegic objectives. The key issue here is to identify those competence areas that are required from us in the future: manage-ment and leadership, business econom-ics, technology relating to new business functions, and agility and the capacity for a speedy response.

With our new business functions we are creating a new kind of workplace community and work culture. We are united by our values and an understanding of the direction we are heading as a company.

CREATING A NEW GASUM



TRAINING PROVIDED BY GASUM ACADEMYAll of our training was brought under the same roof, Gasum Academy, during the year. As part of the Gasum Academy train-ing provision, we launched a major train-ing and development program focusing on management and leadership. Develop-ment in personnel competencies is meas-ured using indicators such as the number of training days. Competence develop-ment also takes place through regular as-sessments and employee-management discussions. It is vital for a player with a crit-ical role in society to continuously maintain a specific number of employees capable of response in situations of responsibility.

WORK CULTURES BEING FUSEDIn the new international Gasum, years of experience and new work cultures and language brought in by new people are now being fused. Our workplace commu-nity is heterogeneous – with young peo-ple as well as experienced staff members who have made a long career in the Nor-dic countries. All of us share a high level of commitment and an experience of our work being meaningful – of being able to generate good things through our work. Our workplace community is friendly, open and happy to welcome new opin-ions. We stand behind our cause and our story. We take responsibility for each oth-

The year 2016 brought us

new co-workers and new top talents.

er’s wellbeing, and our workplace com-munity is founded on the principle of non-discrimination and equality.

Wellbeing in our workplace com-munity is supported by tools such as our shared morning sessions, newslet-ters, participatory intranet, the CEO’s and senior executives’ roadshow, and the entire personnel’s annual training day.

In 2016 our growing company re-cruited a significant number of new employees, and new people also joined us due to business acquisitions. Our new co-workers have given us a chance to learn our new business.



The opportunity to work in a new operating

environment with new people and processes. I enjoy making things happen

and the feeling of success as a team.

These create a positive cycle. Gasum has competent people who are committed to

their work and really want to do their best.

TEEMU LOIKKANEN, DEVELOPMENT MANAGER,TECHNICAL SERVICES, FINLAND

I enjoy the team spirit, with

new people being given a warm and helpful welcome.

JOONAS JUURA, PLANT GROUP MANAGER,

BIOGAS, FINLAND

Skangas is a safe employer

and we have shared objectives.

It’s inspiring to work in a company that operates

internationally.

SOLA TERESE, ADMINISTRATION COORDINATOR, LNG,

NORWAY

BRAVE OUTLOOK ENJOYED BY NEW GASUM EMPLOYEES



GASUM EMPLOYEE OF THE YEAR”I FIRST STARTED AT GASUM as a ma-ternity leave cover in 1998. I’ve had a chance to see our operations from many different perspectives in several depart-ments. I value Gasum’s investments in human resource development, and I’ve also had the opportunity to develop my

own competencies in diverse tasks. The most rewarding thing about

my job in human resource de-velopment was working with

a variety of people. You never get bored as you have to keep up

with the changing world and also develop accordingly. Every change is

an opportunity. I got new challenges and can keep up my own competen-cies in HSE and strategy department. Gasum’s excellent group of people, hu-mor and great team spirit have been the spices of my work.

MIA KOSKINEN, COORDINATOR, HSE, STRATEGY, FINLAND

I’ve felt welcome from the very beginning.

The workplace community at Gasum is encouraging and people

are always ready to help.

I’ve noticed that Gasum employees are genuinely

interested in their tasks and committed to their work.

AMANDA VAINIO, ANALYST,

NATURAL GAS, FINLAND

Gasum is determined to develop

in a changing operating environment and not stuck in old ways.

We’re involved in the efforts to solve societal challenges.

ROOSA JAAKKOLA, SUSTAINABILITY EXPERT, STRATEGY, FINLAND

Our work culture is ambitious,

adaptable, and professional.

HALVAR ROMMETVEDT,KEY ACCOUNT MANAGER,

LNG, NORWAY

What’s great about Gasum is

the determined and brave attitude in moving

forward and growing from Southern Finland to the

Nordic countriesESA PARKKO, PRODUCTION

PLANNING ENGINEER, BIOGAS

FINLAND

Doing things together is how

we operate. It’s nice to go to work in a team

that you feel you belong to.

TUOMAS KUISMA, INVOICING, FINANCE,

FINLAND



GASUM MANAGEMENT TEAM (GMT)JANUARY 1, 2017

M A N AG E M E NT

JOHANNA LAMMINEN

• Born 1966• Chief Executive Officer• D.Sc (Tech.), MBA• Employed by Gasum

since 2013• Chairman of the

Skangas Board of Directors

• Member of the Board and member of Audit Committee of Evli Bank Oyj since 2015

• Member of the Board and member of Audit and Risk Committee of Tieto Oyj since 2016

• Member of the Board of the Chemical Industry Federation of Finland since 2014

• Member of the Board of the Finnish Foundation for Technology Promotion since 2014

JOUNI HAIKARAINEN

• Born 1965• Senior Vice President,

Natural Gas• M.Sc (Tech.)• Employed by Gasum

since 2015

JUKKA METSÄLÄ

• Born 1979• Vice President,

Biogas• M.Sc (Tech.), MBA• Employed by Gasum

since 2014

JARKO ALANKO


Technical Services• M.Sc (Tech.)• Employed by Gasum

since 1995

TOR MORTEN OSMUNDSEN

• Born 1959• Vice President, LNG

Chief Executive Officer of Skangas

• Master of Manage-ment and Business

• Employed by Skangas since 2013


M A N AG E M E NT

JUHA HÄKÄMIES


Strategy• Lic.Sc (Tech.)• Employed by Gasum

since 2016

OLGA VÄISÄNEN


Communications• M.Sc (Econ.)• Employed by Gasum

since 2011

KRISTIINA VUORI


Legal Affairs & HR• LL.M. (Helsinki), LL.M

(London), Trained at the Bench

• Employed by Gasum since 2005

LASSE AARNIO

• Born 1962• CFO• M.Sc (Econ.)• Employed by Gasum

since 2015


BOARD OF DIRECTORS

M A N AG E M E NT

JUHA RANTANEN

• Born 1952• M.Sc (Econ.), MBA

• Chair of the Gasum Board of Directors since March 1, 2016

JARMO VÄISÄNEN

• Born 1951• Lic.Sc (Pol.)

• Member of the Gasum Board of Directors since 1st of March 2016

TIMO KOPONEN

• Born 1969• M.Sc (Econ.)


PÄIVI PESOLA

• Born 1956• M.Sc (Business Econ.)


CHARLOTTE LOID

• Born 1957• M.Sc (Chem. Eng)



GASUM’S YEAR 2016

PUBLISHER Gasum Ltd

P.O. Box 21, Miestentie 1, 02151 Espoo, Finland

EDITOR-IN-CHIEF [email protected]

EDITING AND LAYOUT Miltton Oy

Photography Tomi Parkkonen, Gasum Ltd, Shutterstock

ILLUSTRATIONS Neea Laakso, Veera Pienimaa

PRINT RUN 400

PRINTING HOUSE Lönnberg

PAPER Cover Cocoon Offset 300 g/m2

Inside pages Cocoon Offset 120 g/m2

AVAILABLE ONLINE AT www.gasum.com

ADDRESS SOURCE

Gasum’s customer and stakeholder data file

GASUM’S FINANCIAL STATEMENTS

GASUM’S CORPORATE RESPONSIBILITY

A CLEANER TOMORROWGASUM’S YEAR

The energy company Gasum is a Finnish gas sector (natural gas and biogas) expert that is building a bridge to a carbon-neutral society on land and at sea. Gasum contributes to the creation of a sustainable energy economy by increasing the supply of biogas, developing the Nordic gas ecosystem and ensuring the price competitiveness of gas. Gasum imports natural gas to Finland, products and upgrades biogas in Finland and Sweden and transmits and delivers these for energy production, industry, homes, and land and maritime transport. Gasum is Nordic’s leading supplier of biogas. The Gasum subsidiary Skangas is the leading Nordic expert in liquefied natural gas (LNG) that will continue to strengthen the position and infrastructure of LNG and the utilization of new gas solutions in Finland, Sweden and Norway. The Gasum Group has around 400 employees in Finland, Norway and Sweden.

WWW.GASUM.COM

gasum’s year - gasum - suomalainen energiayhtiö · organization and business units ... tion into...

Documents