3. Industrial Symbiosis Cases in the Baltic Sea Region

Sotenäs is a small municipality with less than ten thousand inhabitants located in the on Sweden's west coast in Västra Götaland region. As a traditional fishing municipality, its economy remains closely connected with maritime activities and fishing alongside tourism. However, today, some of the main firms are not small fisheries but large fish processing industries of national and international relevance, including Orkla Foods Sweden AB, Lerøy Smögen Seafood AB and Marenor AB.

Large industries usually come with large problems, and so was the case in Sotenäs. The combined impact of the three industries was significant with large amounts of wastewater ending at sea. This environmental threat became also and economic threat for Sotenäs. The increasingly tightened EU environmental regulations generated serious concerns about the future prospects of the companies in Sotenäs. The possibility of relocating activities to Norway was seriously considered by one of these companies. Since then, Sotenäs municipality has taken a giant leap forward towards sustainability and developing a more resilient and dynamic economy all at once (Interview 7).

What represented a threat to the environment and the local economy, was turned into an opportunity. The keyword that resonated amongst companies and the local authority was ‘symbiosis’. In 2011, representatives of Sotenäs municipality and the industry came together and travelled to Kalundborg, Denmark for a study trip at the to the world-famous case of IS. This initiative paid off, and as an immediate result, a local business owner made the decision to invest in a biogas plant, while the municipality decided to establish the Centre of Symbiosis which serves as a platform for businesses and stakeholders to meet and discuss innovative ideas (Interview 7).

The biogas plant, Renahav AB is now at the core of the symbiotic network in Sotenäs. Now, fish companies: Orkla, Lerøy, and Marenor transfer their waste to the biogas plant and in return receive renewable energy and heat used in their operations. In addition, a side product, the biogas digestate is used as bio-fertiliser, which is sent to the local Klevs Farm to grow organic rapeseed and other crops. Today, several other companies have joined the network, including the Swedish Algae Factory, which extracts "algica" from algae which is then used for solar cells, cosmetics, and other applications. Also, the microbrewery Smögen Ale AB is now connected and delivers its residue malt, or draff, to the biogas plant, and the land-based salmon farm Smögenlax AB is expected to scale up production soon in symbiosis with the biogas plant and the Swedish Algae Factory. Being located in-land eliminates the pollution otherwise generated at sea by salmon farms. Moreover, algae feeding of the nutrient-rich waste waters provides a win-win solution for water purification. Figure 4 illustrates Sötenäs bio-based industrial symbiosis.

Figure 4: Bio-based industrial symbiosis in Sotenäs. Source: Sotenäs Centre of Symbiosis.

In parallel, Sotenäs has applied the concept of symbiosis also outside of its main biobased industrial symbiosis network. Figure 5 shows a second network of activities connected around Sweden’s first Marine Recycling Centre at its core. The centre was established in 2018 by the initiative of the municipality with the aim to keep the seas free of plastics. Seeing its potential the centre received funding from the Swedish Agency for Marine and Water Management in 2020, the centre to establish a national collection system called to collect discarded fishing gear or ‘ghost nets’ dispersed in Swedish seas. Many of the items collected at the recycling centre are often in good conditions which are regularly picked by Smögens Nät, Sweden's only producer of fishing gears. The recycling centre also counts with a creative space that serves as a testbed for companies or individuals that wish to test and develop innovative products made from recycled materials.  

Figure 5: Recycling and circular economy in Sotenäs. Source: Sotenäs Symbiosis Centre.

Essential to the successful development of IS in Sotenäs is that it makes sense from an ecological point of view as much as for business and society. Sotenäs stakeholders posed themselves the challenge of applying the logic of ecological systems to their production system, which implies a circular utilisation of resources continuously reusing them and leaving no waste behind. According to a municipal official, the logic is to imitate nature rather than putting humans above it (Interview 8). This represented a major change in understanding of residues from industrial processes as valuable resources. According to one informant, the fish industries were unknowingly dumping billions of Swedish Crowns worth of resources into the sea (Interview 7). What was then wastewater, today generates substantial profits for the industries, while at the same time cutting pollution and strengthening the economic resilience of the municipality in the long run. Moreover, companies are less likely to move away to other regions in the future as the symbiotic ties created with each other depend on geographical closeness, or co-location.

In addition to the financial, ecological, and practical arrangements, perhaps the most important success factor is the social and personal ties built amongst stakeholders and with the broader community. As an informant explains, the basis for symbiosis is networking rather than infrastructure (Interview 7). Regular communication generates awareness of the opportunities and trust amongst people. This then translates into specific initiatives. However, the opportunities are not always obvious or existing at the beginning but appear over time. The continuous networking among stakeholders has sharpen their eye to identify possibilities for collaboration and spot the opportunities that emerge, either in the form of resource exchange or in other forms (Interview 8). Moreover, the process of seeking innovation can also be enhanced and systematised, and hence the creation of testbeds and resources available for experimentation have been crucial. Indeed, what is interesting from IS in Sotenäs is that it has moved from the more basic steps i.e., biogas to more complex relations and higher added value ventures.

Finally, the strong commitment and dedication of municipal officials laid the grounds for a productive and transparent collaboration with entrepreneurs and the community. Creating a narrative, using storytelling and applying a concept ‘symbiosis’ that all can relate to, has also been an important part of the success.

 

Figure 6: Kemi-Tornio IS, source: Rautio 2024.

The Kemi-Tornio twin cities in northern Finland along with the municipalities of Keminmaa, Simo, and Tervola, home to a small population of around 53,700 residents (2023), is a significant centre for industrial activity (Statistics Finland, 2024). The Kemi-Tornio broader area contributes with 80% of Lapland’s region industrial output (Nordregio, 2016). The local industrial landscape is diverse, including sectors such as metal, mining, energy, pulp mills, cardboard manufacturing, and the production of lime and limestone derivatives. Moreover, the Kemi-Tornio area is notable for its concentration of industry, with all major companies situated within a 25-kilometer radius, facilitating direct residual exchanges (see Figure 6) (East & North Finland, n.d.).

IS practices have been evolving in Kemi-Tornio for decades, initially driven by the private sector. However, since the early 2000s, there has been a concerted effort to formalise and expand these practices through increasing governmental support and involvement of research and educational organisations and intermediaries, such as Digipolis technology park.

There are several types of resource exchange in Kemi-Tornio (See Figure 7). For instance, ash from Stora Enso’s Veitsiluoto Mill has been used to fill the open pits of the Outokumpu chrome mine after metal extraction ceased. Additionally, bark, a side stream generated from Metsä Fibre’s Kemi Mill, is used as a fossil-free fuel for district heating production, supplying sustainable heat to local cities. Ashes from the bark-burning boiler are primarily used as forest fertiliser, enriching soil and promoting sustainable forestry. Additionally, they can be utilised in earth construction, replacing soil in structures such as fill, protective layers, and roads (Interview 6). Furthermore, excess carbon monoxide from the Outokumpu ferrochrome factory is repurposed as fuel at the SMA Mineral factory, substituting for 17,000 cubic meters of oil each year (Nordregio, 2016).

Figure 7: Industrial Symbiosis in Kemi-Tornio at a glance. Source: Rautio 2024.

A significant milestone in the Kemi-Tornio area was realisation of a detailed mapping of industrial by-product flows, carried out by Digipolis between 2013 and 2014 (See Figure 8). This project led to the creation of a comprehensive databank of industrial by-products, identifying approximately 1.4 million tons of annual residues available for potential reuse in IS—equivalent to about 100 loaded trucks each day. The value of the IS in Kemi-Tornio was estimated at 700 million euros (Lander Svendsen et al., 2021). Additionally, the mapping initiative facilitated the formation of a network of regional stakeholders, enhancing collaboration and communication among them, and helped in matchmaking businesses and uncovering new business opportunities. The databank is still actively maintained and has since been expanded to include data on the region's carbon dioxide emissions, which could potentially be utilised in the future to meet the needs of the hydrogen economy.

Figure 8: The side streams of the industry in the Kemi-Tornio region. Source: Rautio 2024.

As a follow up on a mapping activity, the University of Oulu, in partnership with several organisations, has recently launched a project to map the use of industrial residual streams for water treatment across northern Finland and Sweden. This initiative seeks to discover sustainable practices for repurposing industrial by-products to improve regional water treatment processes. By utilising these by-products as adsorbents, catalysts, or precipitation agents in water purification, the project aims to foster a circular economy.

In 2021, Stora Enso’s pulp and paper mill ceased operations, marking the end of nearly a century of activity. Metsä Group, however, has become the leading industrial operator in the region, strengthening its position by building a new bioproduct mill, which was completed in 2023. This significant investment supports sustainable development in the area. Following Stora Enso’s closure, Digipolis has been actively seeking new industrial operators for the Kemi-Tornio region. Currently, Infinited Fiber Company is preparing to establish an innovative textile recycling plant, while Kuusakoski Oy is constructing a new metal recycling facility. In addition, several other green transition projects are under development, contributing to sustainable industrial growth and regional vitality. Hydrogen economy development is also gaining momentum in the region, with significant activities underway. Circular economy principles play a vital role in the hydrogen economy as efforts are focused on carbon dioxide capture and utilisation in Power-to-X (P2X) technologies for producing synthetic fuels and chemicals. Furthermore, the potential for utilising waste heat from hydrogen economy processes is being explored, aiming to improve energy efficiency and reduce emissions in the region (Interview 6).

 

Figure 9: The ownership structure of Digipolis. Source: Lander Svendsen et al. (2021)

Key factors that enable the development of IS in the region include a robust industrial environment characterised by a high output of by-products, primarily due to the prevalence of primary production industries. Additionally, local educational institutions like the Lapland University of Applied Sciences significantly contribute competencies and research facilities, with the majority of R&D activities concentrated within the Kemi-Tornio industrial ecosystem (Lander Svendsen et al., 2021).

Moreover, a proactive mindset and strong support from national and regional authorities have been crucial in fostering green growth and circularity. Strategic programs such as the European Regional Development Fund (ERDF) programmes for Lapland (2007-2013 and 2014-2020), Lapland’s Arctic Specialisation Programme (2014), and the 'Green Kemi' municipal strategy, which focuses on promoting the circular economy, have all played vital roles in promoting the sustainable use of natural resources. Furthermore, Sitra, the Finnish innovation fund, in collaboration with Digipolis, has significantly driven green growth in the region (Lander Svendsen et al., 2021; Nordregio, 2016).

Although many business-to-business IS activities in Kemi-Tornio occur without public funding, such support remains indispensable. Numerous IS initiatives rely on feasibility studies, pilot activities, and similar projects that would not be possible without public co-funding. Digipolis has played a catalytic role in facilitating these efforts.

Additionally, Digipolis has been instrumental in fostering dialogue and trust-building among stakeholders, mapping resource streams, and navigating legislative challenges by identifying legal barriers to IS development. Established in 1993, Digipolis is a publicly owned development company, technology park, and cluster organisation. The endorsement by the Mayor of Kemi underscores top management’s commitment and has significantly contributed to building trust with the public sector and industries. Furthermore, Digipolis’ diverse membership, encompassing the private sector, public authorities, and academia, reinforces confidence among companies that Digipolis is committed to aligning with their objectives, rather than merely enforcing regulations (Lander Svendsen et al., 2021).

Key challenges for IS in the region include regulatory and legislative barriers, which require significant efforts and resources to overcome.

Farmutil HS Inc. was established in 1982 in Smilowo, Wielkopolska Voivodeship. The company evolved from a small rendering plant into a principal entity within the Farmutil HS group, focusing on to the collection, transportation and processing of animal by-products (Kowalski & Makara, 2021b). In 2007, it underwent a transition into a joint-stock company, which facilitated significant expansion across Poland. Farmutil HS operates a number of rendering plants, including Pilutil and Ekoutil, which enable the company to process categories 1, 2, and 3, as per European Union regulations (Farmutil HS, 2024).

In 2012, the company responded to market demand by launching a biomass production plant, producing hay and straw pellets. This diversification of the product portfolio included also Farmutil HS providing specialised transportation and wastewater management services in the Kaczory borough (Farmutil HS, 2024). A key element of Farmutil HS's operations is its ecological industrial park in Smilowo, which showcases effective collaboration among affiliated companies. This collaboration facilitates efficient exchanges of waste, water, energy, and materials, thereby enhancing both environmental and economic performance (Kowalski et al., 2023).

The company adheres to the principles of a closed-loop economy and is a market leader in Poland's reprocessing industry. It operates modern processing plants, which are among the largest and most advanced in Europe. Today company’s primary activities include the production of meat-bone meal (MBM), animal fats, and biomass in the form of agro pellets sourced from natural agricultural residues. Farmutil employs over 1,000 individuals and collaborates with various partners across the agro-food supply chain, enhancing its position in the industry (Farmutil HS, 2024; Kowalski et al., 2023).

The Smilowo Eco-Industrial Park (EIP) is an innovative collaborative network comprising 13 companies operating 36 production and service installations within a 50 km radius (Kowalski et al., 2023). The geographical proximity of the companies facilitates synergistic interactions, whereby the by-products of one enterprise are repurposed as raw materials for another. For example, Farmutil HS processes meat waste into meat-bone meal (MBM), which is then used in the production of pet food and fish feed (Kowalski et al., 2023) – as illustrated in Figure 10. These practices exemplify not only the principles of industrial symbiosis, reducing waste and enhancing resource efficiency, but also the capacity to introduce valorisation within the biomass industrial symbiosis context. Meanwhile, integrating energy and material flows within the eco-park not only improves environmental outcomes but also enhances the economic viability of participating companies.

Annually, the Smilowo EIP processes approximately 300,000 tons of meat waste, converting this material into 110,000 tons of MBM while also generating 20,000 tons of biofuel. This approach mitigates waste and simultaneously generates additional revenue streams for the involved companies. Furthermore, the eco-park operates a modernised central power station, which generates 460,000 GJ of bioenergy each year, thereby substantially reducing reliance on fossil fuels. The integrated operations of the park have resulted in a significant reduction of approximately 92,000 tons of CO2 emissions annually, contributing positively to air quality and broader climate change mitigation efforts. Furthermore, high-quality drinking water is sourced from wells near the Narew River, ensuring efficient resource utilisation across various processes, including apple juice production and poultry breeding (Kowalski et al., 2023). The Smilowo EIP offers a successful case study, with the implementation of the OXIDOR system for odour control resulting in a significant reduction in local complaints about odour emissions (Kowalski & Makara, 2021a). This highlights the importance of community relations.

Figure 10: Reserouce flows in Smilowo Eco-Industrial Park, Source: (Kowalski et al., 2023)

In 2019, an idea for an industrial symbiosis agro-park in Ida-Viru County, northeast Estonia (see Figure 11), was born. Spanning 1,500 hectares, the park is strategically located close to Auvere, the Enefit oil-shale extraction site and power plant. The area, primarily a reclaimed oil-shale surface mine now predominantly covered with young pine trees, was chosen for development.

By 2021, a detailed ‘master plan’ for the Estonian Industrial Symbiosis Agropark (EISAP) was developed by the Dutch consultancy Except Integrated Sustainability, in partnership with Ida-Viru Investment Agency (IVIA). This plan proposes a blend of industrial and agricultural development with innovative features such as CO2 capture facilities. The vision includes extensive greenhouse operations covering half of the site, alongside nursery and aquaculture. The proximity to a power plant enables to benefit from direct connections to the power grid, leveraging streams of varying heat, pressure levels, and other inputs (See Figure 12) (IVIA 2022).

The European Commission’s Just Transition Fund has allocated EUR 354 million to Ida-Viru County until 2026 to support climate neutrality and value chain development. As of 2020, the region’s shale oil sector employed approximately 5,800 individuals, with around 16,000 residents living in households economically dependent on this sector (CIF 2022). The allocated funds are specifically targeted at bolstering SMEs and large businesses, and research and development (EIS 2024). Estonian companies have shown considerable interest in the fund, and the region has already begun to benefit from the allocation of these grants. Despite significant investments available from the Just Transition Fund in the region, the IVIA has decided to halt the development of the EISAP after nearly five years of efforts due to multiple challenges.

Figure 11:  The planned location of EISAP in the north-east of Estonia. Source: IVIA 2021

The park’s close proximity to the Russian border, amid increased geopolitical tensions and security risks, has diminished the area’s attractiveness to investors. Furthermore, rising energy prices and the loss of the St. Petersburg market—a key export target for the park’s greenhouse produce—have significantly impacted the project’s economic viability. Conflicting political goals and land use interests have also jeopardised the project, with Estonia’s plan to phase out oil shale by 2040 (European Commission, 2022) creating further uncertainty in energy use. Investors’ growing demands for 100% renewable energy are not met by the proposed 70% biomass and 30% oil shale mix, and national defence needs restrict renewable energy expansion, such as wind and solar, in this area. Recent regulatory and tax changes have further strained finances, with potential land tax increases and stringent land use requirements driving up costs.

Figure 12:  Illustration of EISAP bringing together industries such as agro-food and greenhouses, using CO2 and waste heat from the adjacent power plant. Source: IVIA 2021.

Despite these setbacks, the Ida-Viru Investment Agency continues to focus on developing value chains and attracting investment to smaller industrial parks in the region, although IS is not a primary focus at this time. The realisation of EISAP was intended to support Estonia’s goal of achieving climate neutrality by 2050 (ERR 2019), while also fostering high-tech job creation and economic growth. Given that the Ida-Viru region faces challenges such as outmigration, below-average incomes, above-average unemployment rates, and the largest gender wage gap in Estonia (CIF 2022), the establishment of EISAP could play a crucial role in addressing these issues.