Helsinki Bids Farewell to Coal: A Major Step to Carbon Neutrality
The Salmisaari coal power plant officially ceased operations on April 1, 2025, marking a significant milestone in Helsinki’s journey toward carbon neutrality. Shutting down the plant is expected to cut the city’s carbon dioxide emissions by 30% compared to the previous year. This closure also signifies the near-complete phase-out of coal use in Finland.
Helsinki is working toward its ambitious goal of becoming carbon neutral by 2030—twenty years ahead of the EU’s target. Eliminating fossil fuels from energy production is crucial to this transition. A major step was taken in 2023 when Helen Ltd, Helsinki’s municipal energy company, decommissioned the Hanasaari B power plant. Now, the last coal-fired facility, Salmisaari, has been shut down, solidifying Helsinki’s commitment to sustainable energy.
“This is a historic moment, not just for Helsinki but for Finland and the world,” says Juhana Vartiainen, Mayor of Helsinki. “Cities play a crucial role in the fight against climate change, and Helsinki is leading by example, demonstrating our commitment to a greener future.”
With Salmisaari’s closure, Helsinki has reduced its emissions by 30%. The transition has been rapid—just three years ago, coal accounted for 64% of Helen Ltd’s district heating production. The shutdown of both the Hanasaari and Salmisaari plants in just two years will bring down the city’s CO2 emissions by an impressive 43%. On a national scale, these closures will reduce Finland’s total carbon dioxide emissions by 5%.
A Future Built on Clean Energy
Helsinki no longer relies on fossil fuels for energy production. Helen Ltd has invested in carbon-neutral technologies, including Europe’s largest electric boiler and the world’s largest heat pump system, allowing a complete shift away from coal. The city’s future energy mix will focus on heat pumps that harness waste and environmental heat, electric boilers, energy storage solutions, and sustainably sourced bioenergy. Electricity will primarily come from wind, nuclear, hydro, and solar power.
“We’ve made excellent progress in reducing emissions from heating and electricity consumption,” says Deputy Mayor Anni Sinnemäki. “Closing the Salmisaari plant is a crucial step, but we won’t stop here. Our goal is to be net zero by 2040, and eventually, carbon negative.”
Hydrogen: The Next Big Opportunity
As Helsinki transitions to clean energy, hydrogen has emerged as a key focus area. The city is investing heavily in hydrogen technology, with Helen Ltd launching the 3H2 – Helsinki Hydrogen Hub, aiming to start hydrogen production in 2026. This project presents significant opportunities for international businesses looking to invest in Finland’s hydrogen sector.
Finland’s strengths in hydrogen development include a clean and cost-efficient electricity grid, advanced technology infrastructure, a stable investment climate, and abundant clean water and biogenic CO2. The country is also well-positioned to capitalize on hydrogen production by utilizing its industrial byproducts effectively.
