Lounavoima
Lounavoima Oy is a Finnish circular-economy and energy company that converts non-recyclable municipal waste into district heat and electricity at its Korvenmäki plant in Salo.
Last updated September 27, 2026
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Overview
Lounavoima Oy is a Finnish energy and circular-economy company based in Salo, in the Southwest Finland region. It operates the Korvenmäki power plant, which began commercial operation in spring 2021. The plant's core function is to convert non-recyclable municipal waste into local energy through combined heat and power (CHP) production, feeding district heating into the Salo network and electricity into the national grid. According to the company, the plant produces nearly 90 percent of the district heating distributed in Salo, with distribution handled by Salon Kaukolämpö Oy. Lounavoima is jointly owned by Lounais-Suomen Jätehuolto Oy (the Southwest Finland waste management company) and Salon Kaukolämpö Oy (the Salo district heating company). This ownership structure reflects its dual role as both a waste-management solution and an energy provider. The company describes itself as a partner in circular-economy and energy solutions, actively promoting material recycling and emission reductions. Beyond waste incineration, Lounavoima operates a geothermal deep heat storage facility on the plant site. Excess heat generated during the summer is stored underground and recovered during periods of high heating demand in winter, improving the system's overall efficiency. The company is also involved in development projects and experiments, including a trial to utilize Italian waste and investments in slag processing, which are intended to advance the circular economy in the region. Lounavoima positions itself as a link in the development of the circular economy in southwestern Finland and as a contributor to climate change mitigation. Its operations are described as safe, cost-effective, and compliant with environmental permits. The company's communications emphasize regional circular-economy development, innovation, and positive climate impacts.
History
Lounavoima Oy operates the Korvenmäki power plant in Salo, Finland, which began operation in spring 2021. The plant was established to convert non-recyclable municipal waste into local energy through combined heat and power production, supplying district heating to the Salo area and electricity to the national grid. The company is jointly owned by Lounais-Suomen Jätehuolto Oy and Salon Kaukolämpö Oy, linking waste management and district heating operations in the region. Since starting operations, Lounavoima has pursued circular-economy development projects. In 2025, the company began a trial to utilize Italian waste, assessing its suitability for the plant and the functionality of the supply chain. In 2026, it announced investments in slag processing, with up to 20,000 tonnes of waste incineration slag to be processed in Salo. The plant also features a geothermal deep heat storage facility that stores excess summer heat for use in winter. Annual maintenance is carried out regularly, with the 2026 maintenance lasting three weeks in August.
Korvenmäki power plant began operation.
Trial of utilizing Italian waste announced.
Announced up to 20,000 tonnes of waste incineration slag to be processed in Salo.
Annual maintenance of the power plant underway in August, lasting three weeks.
Products and positioning
Circular-economy and energy solutions partner converting non-recyclable waste into local energy.
District heating
The plant produces nearly 90% of the district heating distributed in Salo, with distribution by Salon Kaukolämpö Oy.
Electricity
Electricity is supplied to the national grid.
Geothermal deep heat storage
Excess summer heat is stored underground for use during high heating demand in winter.
Sources2 sources
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