Finland eyes renewable energy ventures with UAE

Finland is keen on deepening co-operation with the UAE in all fields, particularly renewable energy, said Mauri Pekkarinen, Minister of Economy of Finland.

In an interview with WAM, following the visit of Mohammed bin Dhaen Al Hameli, UAE Minister of Energy, to Finland earlier this month, Pekkarinen said the visit by the UAE minister was a return visit to his trip to the UAE last January.

"I consider the visit to be very important for both countries as we are trying to enlarge and develop our mutual relations in many fields. Energy policy is of utmost importance also for Finland, and we have a lot of know-how for example in the renewable energy and energy saving sector," he said.

Pekkarinen said: "I see an ample amount of chances for co-operation. Let me just list a few of the possibilities that I became aware of when visiting Abu Dhabi and Dubai last January. Modern waste handling, clean technology, renewable energy and other environmentally sustainable technologies are sectors with a clear potential. Elevators, harbour handling equipment and other technology in the field of logistics could also be of great interest to UAE.

"In Finland, we also have high expertise in the field of nuclear waste management. Finland's nuclear policy is based on handling nuclear waste as it is produced, rather than leaving the issue to future generations. Already in 2001 it was decided of construction of a disposal facility for spent nuclear fuel. We believe that sound and safe nuclear waste treatment is a must for the future success of nuclear power both in Finland and also globally.

“For our relations in the future, I very much hope that UAE companies could find Finnish partners for co-operation in developing new technology. This could take the form of joint R&D ventures, but it could also be realised by investing in Finnish high-tech companies."

Pekkarinen noted that many Finnish cleantech businesses were already active in the Gulf region, stressing that in order to strengthen the co-operation and facilitate long term success, more Research, Development and Innovation activities should be done between UAE and Finland.

"Finland is considering establishing a Finnish Innovation Centre in the region, and the UAE could be one of the best alternatives for this purpose," he said.

He went on to say: "Finland is heavily dependent on exports, and when the financial crisis hit and had an effect on investment plans of firms, Finland experienced very deep recession. In 2009 GDP decreased by eight per cent, exports by 32 per cent, and industrial output by 21 per cent.

To combat recession, the government very early focused on ensuring access to finance for the enterprises. The swift intervention in the vulnerable financial markets markedly contributed to the obviously successful stimulation policy.

The recession did not affect the Finnish labour market as severely as the worst expectations were anticipating. Yet the manufacturing industry lost about 40,000 jobs and the unemployment rate rose from 6.4 per cent in 2008 to 8.2 per cent in 2009. The employment has slightly improved during 2010 and it is expected to improve further."

Finnish GDP will grow 3-4 per cent in 2010 and also next year.

Asked about the Finnish hi-tech industries, the minister said: "It is true that Finland has a lot of technology industries which suffered hard from the economic recession. Especially in ship building and ship motors, pulp and papermaking technology, automation and harbour handling we have traditionally been strong. These world class companies are now recovering well. Another sector that also was hit by the recession was the forest industries producing pulp and paper. The Finnish forest industries had to close down a number of mills in Finland and elsewhere, but just lately they have managed to come out of the recession quite well. As to the establishment of Finnish industries in the Gulf region my guess is that high-tech industries and knowledge-based services have good chances to succeed in the Middle East."

On the potentials for co-operation in renewable energy, embarking on Finland's vast experience in the areas of renewable energy, he said: "As US President Barack Obama said last spring that the country who leads in green energy in the 21st century, will also lead the global economy in the 21st century. In order to be competitive in the future, UAE and Finland should have closer co-operation in the field of cleantech, particularly renewable energy and smart grids. I would also like to point out that cooperation in the framework of Irena, the International Renewable Energy Agency established in Abu Dhabi, gives good possibilities also for bilateral cooperation between Finland and UAE."

He added that Finland was considered one of the global leaders in bio-energy and bio-fuels, but also there are many world class component manufacturers from Finland for wind energy such as the Switch and Moventas. Masdar has already invested in Finnish wind turbine manufacturer, Winwind. Also solar energy has great potential for co-operation.

"Thanks to Nokia, Finland has also strong knowhow in information and communication technology and networks, which can be now applied to new energy systems. Smart network management makes renewable generation affordable and opens a field for new series of services in the energy field."

Commenting on the progress of trade negotiations between the GCC states and the European Union, Pekkarinen said: "The GCC countries are a very important trade partner for the EU as a whole and for Finland in particular. Finland and the EU are committed to find a solution to last remaining open questions in negotiations on establishing a free trade zone. This requires political will both from the GCC and the EU side."