Valio bioenergy replaces fossil fuels in dairy production

The Finnish food company Valio Oy has long sought to reduce the climate impact of its production by replacing fossil fuels with renewable energy sources. In practice, this has meant both own biogas projects and cooperation with the energy company Nevel Oy, which has implemented bioenergy-based heating solutions for Valio’s dairies. The solutions are primarily based on reducing emissions, security of energy supply, cost control and strengthening domestic energy self-sufficiency.

Renewable heat from biomass at Valio dairies

One significant project implemented by Nevel is related to Valio’s freshly produce dairy in Jyväskylä. There, Nevel installed a 6 MW steam plant using wood chips. The dairy’s annual heat demand is approximately 30 GWh. Therefore, the key objective of the solution was to replace the use of heavy fuel oil with domestic renewable energy. According to Valio, production reliability was a decisive factor in the project, as the dairy processes approximately 160 million kilos of milk annually and even a small energy outage can interrupt production. At the same time, the transition to domestic bioenergy reduced the use of fossil fuels and supported the local regional economy.

Biogas expands Valio’s renewable energy strategy

Valio has cooperated with Nevel at the Haapavesi dairy, where energy supply has been implemented with domestic biomass fuels, such as forest chips and wood-based side streams. Moreover, in 2026, the production of process heat at the Haapavesi plant will continue with an electric boiler supplied by Adven Oy.

Several other Valio plants has bioenergy heat solutions too. In Lapinlahti plant bioenergy is complemented with heat recovery solution.

Valio is also significantly involved in the promotion of biogas. Valio established Suomen Lantakaasu Oy together with St1 in 2022. The company’s goal is to build 8-10 biogas plant complexes and produce approximately 1 TWh of renewable biogas per year by 2030 from dairy farm manure and agricultural side streams. This energy production corresponds to about 100 million litres of diesel and about a quarter of Finland’s national biogas target. The annual production of the first plant currently being built in Kiuruvesi is 125 GWh, which alone would replace an estimated 12 million litres of fossil diesel per year.

Several biomethane-powered trucks are used for milk collection. The first ones were introduced already in 2020, in 2024 there were six in use, and in 2026, Valio announced that it would further expand its use in both milk collection and product transport.

The significance of biogas projects extends beyond the energy sector. The processing of manure in biogas plants reduces methane emissions, produces renewable transport fuel and generates recycled fertilisers for farms as a by-product. At the same time, the projects will strengthen the profitability of agriculture and Finland’s energy self-sufficiency.

Bioenergy strengthens energy security and the local economy

Valio bioenergy solutions are a great example to celebrate Finland’s Bioenergy Day . Valio’s bioenergy solutions are united by the goal of reducing dependence on fossil fuels without compromising the reliability of production. In the dairy industry, energy is constantly needed to produce process steam, heating and cooling, which is why Valio has chosen solutions that combine high system reliability, cost-efficiency and significant emission reductions. Nevel’s bioenergy plants and Suomen Lantakaasu’s biogas projects are concrete examples of this.