Target Company Information

Nevel is a utility infrastructure provider in Finland that specializes in offering advanced and future-proof solutions for both industrial and real estate sectors. The company is committed to climate-positive growth and aims to develop local circular economies while transitioning to CO₂-neutral energy production. Nevel caters to nearly 100 industrial clients and over 5,000 real estate customers, providing decentralized energy solutions. It operates more than 130 energy production sites and 40 district heating networks, generating an annual energy output of 1.9 TWh, sufficient to heat approximately 100,000 households.

Industry Overview

The energy sector in Finland is undergoing a significant transformation aimed at improving sustainability and reducing carbon emissions. Finland is recognized for its robust commitment to ecological responsibility and is a leader in the deployment of renewable energy technologies. The Finnish government has set ambitious goals for carbon neutrality by 2035 and is promoting innovative solutions to meet the growing demand for energy efficiency.

As Finland transitions to a more sustainable energy framework, district heating systems are increasingly central to the national grid, as they offer a more efficient distribution method for heat. These systems integrate renewable energy sources, such as biomass and geothermal energy, to optimize production and minimize environmental impact. The increasing focus on circular economy principles supports the adoption of innovative energy solutions that reduce waste and promote efficient resource usage.

The competitive landscape in Finland's energy market is notable, with various players leveraging digitalization and advanced technologies to enhance efficiency. These changes are driving higher reliability and flexibility in energy production, especially in response to external market fluctuations. Companies like Nevel are at the forefront, adopting state-of-the-art energy management systems to optimize operations and remain competitive.

Additionally, market participation by energy producers in reserve markets is becoming more vital, as they seek to leverage innovative solutions that allow for a more dynamic response to energy demands. Firms are increasingly looking for integrated systems that support both energy generation and consumption management, ensuring a reliable and flexible energy supply.

The Rationale Behind the Deal

Valmet has partnered with Nevel to enhance the energy production flexibility of the Forssa district heating plant by integrating a Valmet DNA Energy Management system. This integration not only optimizes energy planning but also enables Nevel to engage effectively in reserve markets, thus allowing for a more profitable operation. The seamless implementation with Nevel's existing Valmet Distributed Control System (DCS) ensures operational continuity while enhancing overall control and efficiency.

The decision to choose Valmet stems from the company’s proven expertise and experience with similar energy management deployments, making them a trustworthy partner in Nevel’s journey toward improved operational efficiency. The ability to scale this solution across multiple facilities further underscores the strategic foresight embedded in this agreement.

Information About the Investor

Valmet is a global leader in developing technologies, services, and automation solutions in various industries, including energy, pulp and paper, and board and tissue manufacturing. With a commitment to innovation and sustainability, Valmet offers tailored solutions that meet the evolving needs of its customers.

The company's extensive portfolio emphasizes energy efficiency, and its experience with digital solutions allows its clients to optimize production processes effectively. Valmet aims to enhance operational performance for its customers while contributing positively to the environment through sustainable practices.

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This collaboration between Valmet and Nevel represents a strategic investment, particularly in light of the evolving energy landscape in Finland. The implementation of an advanced energy management system is vital for enhancing operational capabilities in the face of rising demand for efficiency and sustainability. This investment aligns with current industry trends prioritizing digitalization and flexibility in energy management.

From a financial standpoint, the strategic integration of the Valmet DNA system may initially come with implementation costs, but these should be offset by long-term savings and efficiency gains. By enhancing energy flexibility and performance, Nevel is positioning itself competitively in the market, which bodes well for future profitability.

Moreover, as the transition toward renewable energy accelerates, Nevel’s commitment to CO₂-neutral production will likely yield positive returns on investment. The company's proactive approach to energy management not only increases operational agility but also sets a precedent for other firms facing similar challenges in the energy sector.

Considering these factors, the investment appears to be sound, projecting potential for growth within an increasingly relevant sector while contributing to sustainability goals, which can further bolster Nevel's public perception and investor confidence.

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