Tahkoluoto Offshore Cancels Demo Project, Moves Forward with Full-Scale Development in Finland

January 9, 2025, by Adnan Memija

Tahkoluoto Offshore Oy, the developer of the Tahkoluoto offshore wind farm extension project in Finland, has scrapped plans for a demonstration project that involved the installation of two 15 MW wind turbines.

The purpose of the demo phase was to pilot large-scale offshore wind turbines, foundation concepts, and construction methods for deep waters (15-45 metres), and was expected to comprise the construction of two 15 MW wind turbines.

The demo phase was discontinued due to time restrictions of the investment grant as well as uncertainty in property taxation of offshore wind production in Finland, said Tahkoluoto Offshore Oy.

The demonstration project received a grant of EUR 30 million from the country’s Ministry of Economic Affairs and Employment.

”The grant received from the Ministry of Economic Affairs and Employment in Finland set a deadline for the completion of the demo phase, and changes in delivery schedules would have negated the grant,” said Toni Sulameri, Managing Director of Tahkoluoto Offshore Oy.

“In the current market situation, cost pressure is high, and there is considerable uncertainty over property taxation of offshore wind in Finland. In this context, risks for the investment became too high.”

Despite the discontinuation, the company said it proceeds with the preparation of the Tahkoluoto offshore wind farm extension project.

The investment decision is scheduled for the end of 2026, with the construction phase taking place from 2027 until 2029. The extension project is planned to be built on the west coast of Finland, some 4-22 kilometres from the coastline. The goal of the project is to install 40 turbines, each with a capacity ranging from 15 MW to 20 MW.

”In terms of its scope, the demo phase was a next-generation wind energy project, and in many respects a pioneering project. It helped us to improve our skills, organisation and value chain significantly. We were able to develop all project components up to investment readiness before the last-minute schedule change.” said Petri Mikola, in charge of the demonstration phase of the Tahkoluoto offshore wind farm extension project.

“Despite the discontinuation of the project and the disappointment it caused, the work we have done instills confidence in the continuation of the Extension project itself.”

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Wind Farm Update

Constructed in 2017, the Tahkoluoto offshore wind farm is owned by Suomen Hyötytuuli Oy.

The project, which features eleven turbines, is Finland’s first offshore wind farm and the only one in the world operating in frozen sea.

In March 2024, the Finnish company announced it would conduct a full demerger, transferring its wind farms to a new firm of the same name, while Tahkoluoto Offshore Oy would take ownership of the extension project.

”Although the growth of the energy market has slowed down, we are looking forward to investments, for example, in the hydrogen industry. At the moment, Tahkoluoto Offshore wind farm Extension project is further along than any other offshore wind project in Finland and also the only one that can be completed already in this decade,” added Sulameri.