As industries worldwide accelerate efforts to phase out fossil fuels, electrification has emerged as a cornerstone of the global energy transition. To navigate the uneven pace and complex systemic drivers of this transformation across international markets, Valmet partnered with VTT to develop an evaluation framework for electrification.
As global industries transition away from fossil-fuelled energy generation, the pace of electrification varies significantly by region. Valmet needed a structured, research-backed methodology to assess and anticipate electrification readiness across different countries.
VTT and Valmet co-developed an evaluation framework for electrification through an iterative, collaborative process. Grounded in VTT’s energy systems research and regulatory insights, the framework was piloted and validated across three distinct national markets.
The framework provides Valmet with a strategic tool to prioritise target markets and identify R&D timelines for new electrification concepts.
Headquartered in Espoo, Finland, Valmet is a global technology leader serving process industries. The company works together with its customers throughout the entire lifecycle, delivering cutting-edge technologies and services as well as mission-critical automation and flow control solutions. Valmet is committed to accelerating the transformation of industries toward a regenerative tomorrow, laying the foundation of its R&D work.
Electrification as an industrial transformation
The fight against climate change relies heavily on the rapid expansion of clean energy, primarily wind and solar. Countries seeking self-sufficiency are looking for ways to transition away from fossil fuels. Decarbonisation policies set electrification targets for industries.
Because renewable power generation fluctuates with weather conditions, energy systems require more flexibility than before. At the same time, traditional industrial sectors consume vast amounts of fossil fuels for high-temperature process heat and steam. Decarbonising these processes requires shifting toward power-to-heat and other electrified solutions, making electrification both a primary decarbonisation pathway and a critical source of system flexibility.
However, the global transition is moving at varied speeds, due to factors such as:
Regulatory barriers
Grid capacity limitations
Differing power market structures
Fossil fuel price dynamics
Subsidy policies.
We needed the project to be anchored in technological substance and deep energy systems expertise. VTT brought the exact capability we required.
A scientific approach to strategic R&D
When Valmet set out to investigate global electrification, they sought a partnership that combined strategic foresight with technological and scientific rigor. Building on a long history of joint R&D projects, the company turned to VTT.
“Electrification has become a strategic priority across multiple businesses at Valmet,” explains Marko Palonen, Senior Manager, R&D at Valmet. “We deliberately wanted a research-driven, scientific approach. While this project delivers practical tools to evaluate market trends and serve business development, we needed it to be anchored in technological substance and deep energy systems expertise. VTT brought the exact capability we required.”
Co-creation where the journey matters most
From the outset, the project was designed as a reflective, dialogue-driven exploration rather than a rigid linear delivery. Instead of evaluating a predefined Valmet product, the teams set out to identify the factors affecting the transition.
“This was an exploratory, research-based collaboration. The framework evolved organically through continuous feedback, ensuring it was directly relevant to Valmet’s commercial reality,” says Heidi Kirppu, Senior Scientist in Energy Transition at VTT.
The resulting evaluation framework was tested and validated across three market regions, analysing how local power prices, grid infrastructure, industrial composition and environmental policies influence the viability of technologies such as electric boilers and industrial heat pumps.
“The most rewarding partnerships are those where both sides embrace a degree of uncertainty to discover solutions where no straightforward answers yet exist. In this project, I believe the ongoing discussions and insights shared along the way were just as valuable as the framework itself,” reflects Miika Rämä, Research Team Leader, Energy Transition at VTT.
From market intelligence to strategic action
The framework is already delivering tangible value within Valmet. Valmet’s teams have independently expanded the analysis to additional geographic markets and integrated AI to process source data. In practice, the framework serves as a strategic compass across commercial and R&D operations: it enables the company to prioritise high-potential target countries and sectors while timing technology investments before demand peaks.
“Our customers' heating networks are typically composed of multiple integrated solutions – electric boilers, heat pumps and traditional combustion or waste heat recovery. By modelling the entire system within a country's market context, we can design optimal, sector-specific concepts,” Palonen explains.
Building the roadmap for future innovation
During the project, VTT’s offering included:
Energy systems and transition research
Regulatory and policy foresight
Methodology and framework design
Market validation and case analysis.
The framework reinforces Valmet’s broader vision for sustainable industrial transformation. Electrification sits at the core of Valmet’s company-wide Industrial NEXUS flagship programme, a five-year initiative launched in 2026 that focuses on accelerating industrial renewal through human-centred digital technologies and innovative operating models.
“Industrial transformation is advancing along three fronts: shifting to renewable inputs, developing processes to boost efficiency and leveraging digitalisation and optimisation. Electrification intersects with all three. Electricity is increasingly becoming a raw material in its own right and electrified operations enable advanced digital optimisation. Its inclusion in our flagship programme highlights its strategic weight,” Palonen says.
With the foundation established, VTT and Valmet are planning the next phases of their collaboration. Potential follow-up initiatives include scaling up country-level modelling, integrating AI-driven analytical tools and translating market insights into concrete, sector-specific electrification technology concepts. As a developer of technology for industrial electrification, VTT has the capabilities for supporting companies throughout the entire process, from strategic assessment, technology development and piloting to commercialisation.
