Energy Transition Roadmap

Our vision is to be the leading producer and seller of CO₂-aware energy. We are realising this vision through investments in the energy transition, and at the same time, building world-class expertise in the energy sector.

Given our focus on the transition, at St1, we are committed to uncovering new avenues for sustainable growth and shaping a profitable business for the long-term. As the process of renewing our business moves ahead, our energy transition roadmap serves as an important part of our toolkit to plan and execute the energy transition. It outlines how energy transition will progress and how we can achieve our ambition to implement it profitably while meeting regulatory and stakeholder requirements.

The main drivers of St1’s roadmap are our vision and the strategic choices we are making to continuously enhance the sustainability of our value chain. The roadmap’s concept is built on global frameworks such as the Paris Agreement, the EU’s climate targets, national regulations, and technological advancements, as well as our own adaptation to new market circumstances and evolving customer expectations.

In 2024, we identified the need to take the next step in developing our energy transition roadmap further and shift focus towards annually updated, data-driven scenarios and analyses, ensuring an up-to-date view of our energy transition in a volatile operating environment.

We have developed our model from production investment plans and European and national demand scenarios to a systematic and dynamic yearly updating model, which integrates multiple themes into one concise framework. This approach will provide a process to facilitate an up-to-date, holistic, and shared view of St1’s energy transition, while also functioning as a platform and tool for systematic work. We continue this development in 2025 by adding an investment approach analysis, and incorporating dialogue with external stakeholders and customers to update the scenarios.

Our developed energy transition roadmap will guide our strategy execution and business planning, by serving as a shared data platform and tool for developing future carbon emission reduction scenarios, CO₂ abatement cost analyses, and investment analysis. Updated annually, it provides a contemporary view of our energy transition efforts and scenarios outlining what would it require to reach net zero, aligned with Nordic energy demand scenarios, EU regulatory frameworks, and international climate goals.

The primary target of our roadmap is to grow our low-emission energy portfolio. This requires us to connect our new products with growing market segments, which may also emerge in different sectors and geographical areas.

Growth opportunities for St1 arise by exploring and developing new business areas, while ensuring a healthy cash flow to support the energy transition. Furthermore, we are accelerating growth through acquisitions, and strengthening our operations through strategic, long-term partnerships in various areas. Additionally, we are developing future value chains to invest in CO₂-aware energy production. Naturally, future decisions taken within the regulatory framework and demand for new solutions will also affect the realisation of these opportunities.

Our roadmap consists of long-term scenarios that include investments in low-emission energy forms such as renewable electricity, hydrogen-based energy carriers, and biofuels, as well as fossil fuel-based energy. In other words, it is our projection of what the Nordic energy system will look like, and what St1’s role will be within it, considering both the timespan and volume development of various low-emission energy solutions replacing traditional fuels.

Liquid transport fuels will continue to play a significant role, yet their composition is expected to gradually shift towards increasingly low-emission alternatives. Today, St1 has a strong asset base for the liquid fuels trade in the Nordics, spanning refinery infrastructure, terminal and retail networks, logistics, and a robust sales network for end-customers in the transport fuels segment, covering road, marine, and aviation. Our work in developing liquid fuels will continue to comprise a significant portion of our cash flow and allow us to introduce new renewable energy products for different sectors.

We aim to offer all our customers a solution that not only manage market-related risks but also delivers energy while providing transparent and trustworthy ways to reduce their own carbon footprint.

As a small energy transition company, we have punched above our weight and continue to do so. Our energy transition journey became evident in 2007, when, in the spirit of our vision, we opened our first Etanolix®-plant in Finland, producing waste-based ethanol for transportation. Even then, we were determined to solve global energy challenges. Today, this passion is stronger than ever.

We have boldly taken ambitious steps to explore, pilot, and commercialise new energy solutions. We expanded the advanced ethanol biorefinery network by introducing waste-based RE85 high-blend ethanol fuel in Finland. We also entered the industrial wind power production market, promoting the spread of renewable energy and its technological development.

Our associated company TuuliWatti became a leading wind power actor in Finland. We saw great opportunities worth piloting in combustion-free heating through deep geothermal heat drilling into depths of over 6 kilometres, in the hope of uncovering an emission-free solution. We have taken risks in our search for answers in the face of global energy challenges—at times successfully, and other times not—but we are always learning and advancing.

Today, we recycle used cooking oil and fatty food waste for feedstock to renewable fuel production. Our production portfolio includes biogas, Sustainable Aviation Fuel (SAF), and renewable diesel. We construct solar power plants and offer ground source heating systems. Our Nordic EV charging and biogas filling station network is expanding. Our current low-emission energy production development pipeline includes projects in various stages, totalling approximately 30 TWh of annual production. That equals approximately 60% of our energy sales today. At the same time, we have plans for our oil refinery transition. In addition, we are continually investing in our infrastructure, which serves the storage and distribution of low-emission energy.

In line with our vision, we strive to create a positive societal impact through our operations. We work constantly towards enabling a more sustainable value chain and believe that by running a responsible and profitable business, we will achieve our vision.