Kemira, one of the world’s leading providers of sustainable chemical solutions, relies on Power-Deriva in the power market. Through the partnership, the key raw material of one of Kemira’s most essential products is purchased at the right time and in the right market—efficiently, profitably, and transparently around the clock.
For Kemira, electricity is not only a source of energy but also a raw material. For example, the production of sodium chlorate used in pulp bleaching is based on electrolysis, in which the product is manufactured using electricity converted to direct current. This makes power prices and availability direct drivers of production cost efficiency. The combined electricity consumption of Kemira’s production facilities is 100–200 megawatts, equivalent to a small city. Improving energy efficiency is also essential for achieving carbon neutrality.
“Electricity prices fluctuate constantly, and the market is complex. We focus on our core business, chemical production, so we chose a competent and reliable partner for power procurement,” says Seppo Tuomisto, Energy Business Support and Development Manager at Kemira Plc.
Flexible and Transparent Electricity Procurement as a Service
Power-Deriva is responsible for the physical electricity procurement of Kemira’s production facilities in Äetsä, Joutseno, Harjavalta and Kuusankoski, Finland. The partnership includes spot and intraday trading on Nord Pool, balance management, minimizing deviations and related communication, real-time data transfer between control rooms and the market, and the utilization of demand flexibility and other market opportunities.
Kemira provides Power-Deriva with consumption forecasts and submits a purchase offer daily. In turn, Power-Deriva verifies forecasts, manages trading, monitors deviations in production and consumption, and helps minimize balancing power costs and optimize production in line with market conditions. Kemira also has flexible capacity that enables it to adjust consumption, trade in the secondary market, and make operational shifts, even selling electricity back to the market.
“As a market participant, we see prices and trade in real time and always know exactly where we stand without intermediaries. The process is highly automated, and our specialists mainly focus on approving bids,” Tuomisto explains.
Right Decisions, Rapid Actions, and Lower Risks
The cooperation between Kemira and Power-Deriva is a textbook example of how a process industry company can extract optimal value from the power market while minimizing risks.
“Working with Power-Deriva is smooth and effortless. It’s easy to get in touch, issues are resolved quickly, and communication is active in both directions. This is especially important not only when prices fluctuate, but also in exceptional situations that require correct decisions and fast actions,” Tuomisto emphasizes.
With the shift to quarter-hour pricing in the spring of 2025, the importance of active cooperation has grown even further. Fingrid maintains grid frequency stability by activating balancing reserves when needed. The pricing of these markets affects the power procurement costs of companies like Kemira whenever consumption or production deviates from plan. This over/underproduction is priced in 15-minute intervals, with prices reaching up to ±15,000 €/MWh.
“In process industries, automation is already playing a key role, and as incoming data quadruples, it will be impossible for humans to handle all adjustments manually. Our competitiveness increasingly depends on fully utilizing demand flexibility and automation. Power-Deriva is an excellent partner in progressing this work as well,” Tuomisto concludes.
Customer Benefits in Brief:
- Resource efficiency: Kemira focuses on its core expertise while Power-Deriva handles electricity procurement as a service.
- Cost efficiency: electricity at the right price and at the right time, 24/7.
- Transparent procurement: Kemira operates as a market participant and always stays informed.
- Better risk management: fast decisions and correct actions, even in exceptional situations.
- Readiness for change: smooth transition to quarter-hour pricing and insight into the evolving power market.