Kemijoki Oy terminates Sierilä hydropower plant project due to escalating risks and rising costs
10 January 2024
Kemijoki Oy has opted to abandon the Sierilä hydropower plant project, citing insurmountable project risks as the primary reason for discontinuing the venture. The extension of the water management permit granted to the Sierilä power plant to start work expires in May 2024.
Over the nearly two-decade permitting process, the costs associated with the Sierilä project have skyrocketed, driven by a myriad of complaints. The financial viability of the project has consequently weakened, with substantial increases noted in both construction and financing costs.
The Sierilä project initially gained social approval and legal force in 2017 through the issuance of a water management permit. However, subsequent appeal processes related to other necessary permits prolonged the project's timeline, contributing to its ultimate demise.
Expressing gratitude to the dedicated personnel and partners who championed the Sierilä project over several decades, Tuomas Timonen, CEO of Kemijoki Oy, acknowledged the company's exhaustive efforts. "We have done everything we can to build additional hydropower in Sierilä. I would like to thank the personnel and partners of Kemijoki Oy who have promoted the Sierilä project over several decades. With hydroelectricity, we make Finnish everyday life smoother every single day. Our work to improve Finland's security of supply and speed up the safe energy transition continues, for example, by promoting our pumped-pump power plant projects," Timonen said .
