Sustainable Energy Solutions Sweden Holding AB announced a principal agreement with Callio to initially develop an underground pumped hydro storage and battery energy storage system in Pyhäjärvi, Finland.
One of the Pyhäsalmi mine’s core strengths is its geographical location, which provides direct access to the established electrical grid, ensuring seamless integration and optimal functionality, according to a release.
SENS said it also sees opportunities to expand the project with a solar plant that would further increase capacity in the region.
This strategic partnership aims to develop an energy storage solution at the Pyhäsalmi mine, integrating a battery energy storage system (BESS) with an underground pumped storage hydroelectric (UPHS) facility and photovoltaic (PV) solar parks. The integration of BESS with UPHS and PV at the Callio Business park and Olcconen Green Industrial park aims to enhance energy management efficiency and profitability, offering substantial financial returns while supporting sustainable development.
Callio is a development company owned by the Pyhäjärvi Municipality.
With all permits secured, including agreements on grid connections, the BESS is in a ready-to-build phase, with battery systems expected to be operational within a year, ready to deliver 85 MW of capacity to the grid, the frequency market or the arbitrage market. The full project is slated to commence in 2025.
The UPHS system has an estimated storage capacity of 530 MWh and a maximum capacity of 75 MW. Its primary objective is to balance energy supply and demand using the existing mine infrastructure, thereby contributing to grid stability, and reducing carbon emissions.
The third aspect of the project is the establishment of PVs in the area, which would further enhance sustainable energy production and increase total capacity of the project.
The project involves a consortium consisting of SENS, which offers the BESS and UPHS solutions; Callio, Callio Business park and Olcconen green industrial park areas; and UB Corporate Finance Ltd. as financial partner for this development. Axpo is considered to be responsible for energy trading in relation to the assets. In addition, the Finnish government has allocated €26.3 million (US$28.5 million) linked to foreign direct investments for initiatives within renewable energy.
“Callio Pyhäjärvi and the town of Pyhäjärvi are excited about the collaboration with SENS. For the town, this project is a direct investment in the municipalities’ carbon neutrality efforts, which the town has been at the forefront of for years,” said Henrik Kiviniemi, town manager of Pyhäjärvi. “For Callio, the UPHS and BESS projects are important cornerstone initiatives for the repurposing of mining infrastructure and the green transition in the Olcconen industrial park. In Pyhäjärvi, we see the project entity as important both locally and nationally.”
SENS develops, designs, constructs and sells large-scale energy projects combining renewable energy sources with energy storage technologies such as UPHS and/or BESS. The company also conducts technical advisory consultancy services within energy storage and energy systems optimization.
