Green transition investments and zoning in municipalities

In many municipalities in Finland, efforts are being made to attract green transition projects, such as battery factories or green hydrogen production plants, to the area. Industrial activities impose many requirements on zoning and infrastructure, which also involve human values.

The green transition is visible in many ways in the future planning of the economic life of Finnish municipalities. Many municipalities want to be attractive locations for battery industry, wind farms, or green hydrogen production plants, as they bring new jobs and tax revenues.

How can a municipality prepare for green transition industrial projects?

Implementing green transition projects is not as straightforward as news coverage might sometimes suggest. For example, the implementation of a battery industry project is a multi-phase and time-consuming process that requires a lot from the area’s zoning and permitting. However, municipalities and regional development companies can speed up this process with good preparation.

Zoning of industrial areas – zoning designation matters

In the zoning of industrial areas, many perspectives must be considered, which is why we carry out development planning and safety assessments for municipalities, evaluating the suitability of industrial zoning designations from the perspective of accident hazards. A facility using hazardous chemicals can limit the use of the surrounding area, which must be taken into account in zoning.

The municipality must determine what type of industrial use the area is suitable for. Green transition facilities typically require zoning regulations that enable chemical industry activities, such as T/chem, which imposes special requirements on the integration of the industrial area and its surroundings. The detailed plan of the industrial area must not be fundamentally inconsistent with the goals set for land use at higher planning levels, and therefore the placement of projects may require updating the master plan.

The importance of proactive examination of area suitability is emphasized in industrial projects that cannot wait for long zoning processes. It is too late to realize the need for examination when project operators are already at the door. Therefore, we work closely with urban areas and municipalities in the development of industrial and logistics areas and various types of green transition facilities, zoning, and location studies.

Location of a battery factory – close to residential areas or far from everything?

To reduce the risks of accidents, it would be easiest to place the handling of hazardous chemicals as far away from residential areas as possible. However, obtaining the necessary infrastructure, workforce, and support functions for the factory in such an area can be difficult. Additionally, the response time of rescue services from the alarm to the accident site must be considered.

In zoning, efforts are made to reconcile different requirements in a way that allows the industrial facility to be placed at an appropriate distance from other community structures and essential infrastructure. By preparing for major accidents and modeling their consequences, it is possible to assess the risks of operations to the environment and the surrounding community and reduce the impact of risks with technical solutions.

The location municipality requires skilled labor and various services both during the construction and operation phases. If the investment creates 300 new jobs, a multiple number of people may move to the area. Therefore, in connection with the zoning of industrial areas, it is advisable to prepare for an increasing population by zoning new areas for housing and services, making the area attractive to new labor and businesses.

Previous industrial activities can speed up infrastructure construction

In the selection of the location for green transition investments, the area’s previous or existing industrial activities are often an advantage. Then, important services and infrastructure networks for the industry are available. Additionally, there is general acceptance of industrial investments in the community, which is a significant advantage in promoting the project.

A good location has functional transport and logistics connections for both raw materials and people, regardless of the industry. All kinds of industrial activities also require sufficient electricity and water connections. Expanding or building the electricity network from scratch can significantly delay the project. Water is another essential commodity in many industrial processes, and its availability must be ensured during the project’s preliminary study phase.

Areas should also consider where the waste heat generated from industrial cooling could be directed. Could it be utilized in the production of district heating in the area? This can improve the profitability of the investment, and the district heating producer can reduce the energy procurement costs needed for heat production.

The municipality is strong in the selection of the location if the industrial area has a valid plan, functional transport connections, skilled labor, and services desired by industrial operators. Often, not all competitive factors are found within one municipality, and therefore municipalities should also engage in inter-municipal cooperation when competing for projects.

Erno Voutilainen, battery industry expert, erno.voutilainen@sweco.fi

Timo Rysä, land use and zoning expert, architect, FISE YKS-530, timo.rysa@sweco.fi