How Finland is helping Michigan reach its green goals

While Finland and Michigan may be separated by thousands of kilometres, and at first glance appear to have little in common, the news that the Nordic country is helping the US state in its transition to a sustainable and green economy would have come as no surprise to those who, with the right eyes, saw the many similarities between them.

Both have cold winter climates, vast forested areas, and enormous lakes, and both are major players in the maritime sector, with large stakes in the automotive industry. Finland is already a major authority on green tech in these sectors to a point that belies the size of its 5.5 million population. Michigan, a state synonymous with the automotive sector, recognised a kindred spirit, and since the signing of a Memorandum of Understanding concerning cooperation in clean technologies in March 2020, the partnership has continued to grow.

In the two years since then, new collaborations between Finland and Michigan-based research institutes and industries have sprung up, with the aim of advancing economic and trade relations and innovation. Their partnership has two special focuses. The first of these is the bioeconomy, smart forestry, and wood construction, and the second is marine, ports, logistics, mobility, and autonomous shipping.  

Read more: Wärtsilä opens new tech hub to accelerate marine & energy decarbonisation

Today, there are over 100 participants in Finnish-Michigan projects connected with the US state’s transition to a green, sustainable economy.

To find out more about the projects his country was working on in Michigan, Industry Europe spoke to Okko-Pekka Salmimies, Ambassador and Consul General of Finland in Los Angeles, as he and the other members of the Team Finland Business Delegation were visiting the state in May.

“The question of ‘why Michigan?’ is obvious when you look at the Finnish economy and our trade investments,” says Ambassador Salmimies.

“The two sectors that we are targeting here are extremely important. We have something to offer to our Michigan partners and they have something to offer to us. It's as simple as that. Both are research and science-intensive, and Finland has invested a lot in them.”

Bioeconomy expertise

At least 73% of Finland - 20.3 million hectares - is covered with forest, making it Europe’s most heavily forested country. For its part, 53% - 7.8 million hectares - of Michigan is forested. But beyond this commonality, both countries are ambitious about developing the sector.

In 2019, the bioeconomy generated value of around $27 billion and products from the industry account for one-third of Finnish exports. So, it goes without saying that it is an important source of revenue for the country, which has invested heavily in research, development, and innovation in the sector.

Read more: Biomass and its role in the energy transition

As such, Finland has strong expertise and a deep understanding of bioproducts, and with this mind, it should come as no surprise that Michigan is eager to partner up.

“The response that we have received here in Michigan has been very enthusiastic, and Finnish companies and research have plenty to offer to our partners here,” he adds.

“What’s important is to have the research side, going along with the business side in order to be truly innovative. And that's what we are looking for. We're looking for innovation and cooperation, which then can also boost business. And it all boils down, of course, for a small country’s exports, that business opportunities are created. Research is a big part of that.”

Smart Maritime

While smart maritime may be a more specific sector than bioeconomy, it is an extremely important one for Finland.

“We consider, and with good reason, that the Finnish marine sector is at the forefront, especially in developing zero-carbon and autonomous vessel technologies. These are our biggest strengths.

“We also believe that we are a global frontrunner in the digitalisation of the maritime sector, which covers artificial intelligence, sensors, and wireless technology. I can say these things because we score consistently highly in international comparisons.

Indeed, the nation has set itself the ambitious goal of having the first autonomous maritime commercial maritime ecosystem by 2025. What this means is that every ship in Finland should be a smart ship by that date.

In terms of reaching zero-carbon fuel ships, the goal is 2040 – also ambitious for a sector considered hard to abate. The Finnish maritime sector is currently investing heavily in the development of clean marine fuels, as well as electric vessels and shore power systems. And it’s in these areas, the Ambassador says, that they hope to work together on along with their partners in Michigan, a state which also has conducted a lot of research, especially into autonomous vessels.

Read more: On the crest of a green wave – Decarbonising the maritime sector

One maritime sector that the Finns are especially interested in, is icebreakers, special-purpose ships designed to navigate through ice-covered waters and provide safe waterways for other vessels.

Icebreakers are already an important part of the marine and defence sectors, especially during the winter months. As global warming takes its toll, and more ice melts, icebreakers will become even more essential for navigating the Arctic waters as the area begins to open up as a shipping route.

“I don't know for sure, but the icebreaker sector might be the one sector in which we are the world superpower. Around 80% of the world’s icebreakers are designed by Finnish companies and around 60% are built there. While this is, of course, a matter of national interest, that doesn’t mean that global markets are not open to us.

“We can provide the technology, we can provide the design and, and the knowhow, and that's what we are aiming at, and our expertise covers ship design and construction, materials design, and construction technology as well as ice breaking management technology. There is also ship engine automation systems, electrification, navigation, and piloting. So we are, so to say, a one-stop-shop when it comes to icebreaking technology,” Salmimies added proudly.

Cultural connections

There is more than just the bioeconomy and marine sector that links Finland and Michigan. The first Finnish immigrants in the US settled in the state’s upper peninsula in 1865, after the civil war. In five or six Michigan counties, people of Finnish descent make up the ethnic majority, with around 35% claiming heritage and still celebrating that heritage to this day.

“It’s amazing how strong the heritage is there, even for a third, fourth or even fifth generation Finn. There’s also the Finlandia University higher education institute established in 1896. In Michigan, I was greeted in Finnish and have seen Finnish flags and street signs in the Finnish language.

“These cultural ties generate a strong interest towards Finland and form a great basis for our present and future collaboration.”

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