Lp Pr minister Piret Hartman Regionaal- ja Põllumajandusministeerium Suur-Ameerika 1, 10122 Tallinn 0 5 . 1 1 .20 24 , nr. 1- 633
[email protected] Taotlus kinnistu ( Narva-Jõesuu linn ) mitterahaliseks sissemakseks SA Ida- Vir u Investeeringute Agentuur sihtkapitali suurendamiseks SA Ida- Viru Investeeringute Agentuur (IVIA) pöördub Teie poole, seoses Ol gina lennuvälja ja selle juurde planeeritud äripargi väljaarendamiseks vajalike maade taotlemisega IVIA omandisse sihtkapitali suurendamise kaudu mitterahalise sissemakse teel. Arvesse võttes asjaolusid: SA Ida- Viru Investeeringute Agentuur ( IVIA ) on riigi asutatud sihtasutus, mis on kantud sihtasutuste registrisse 24.05.2010.a. Vastavalt IVIA põhikirja punktile 2.1.: „ S ihtasutuse põhieesmärk on ettevõtluskeskkonna arendamine ja majanduskeskkonna mitmekesistamine Ida-Virumaal ; ( välis -) otseinvesteeringute toomine Ida-Virumaale ja selleks Ida-Viru maakonnas arendusprojektide ehk tööstusalade aktiivne väljaarendamine; “ IVIA, kui huvitatud isiku taotluse alusel algatas Narva- Jõesuu linn detailplaneeringu otsusega nr 17 (2 9 . 12 .2021 ) ning kehtestas otsusega 105 ( 25 . 09 .202 4 ) kinnistutele Narva-Jõesuu linnas, Soldina külas asuv Lennuvälja kinnistu (katastriüksuse tunnus 85101:003:1275 ) ; IVIA on finantseeringu detailplaneeringu koostamist, keskkonnamõjude strateegilist hindamist ja eelprojekti koostamist nimetatud kinnistule; IVIA soovib planeeringualal realiseerida Olgina lennuvälja ja selle juurde planeeritud äripargi arendusprojekti kinnistu l Lennuvälja (katastriüksuse tunnus 85101:003:1275 , https://ky.kataster.ee/ky/85101:003:1275 ) ; Olgina lennuvälja ja äripargi arendusvajadus on tingitud asjaoludest: L ennuvälja areng avaldab mõju Ida-Virumaa ärielule, piirkonna majandusele ja kogu Eesti konkurentsivõimele. Lennuväli on vahend ettevõtluse ja turismi arendamiseks ning Ida-Virumaa kui investeerimispiirkonna atraktiivsuse suurendamiseks. ; Ühe tööstusinvesteeringu mõju Narva- Olgina äripargile või teistele IVIA tööstusparkidele võib katta kõik lennuvälja investeeringud. Kiire juurdepääsetavus on ettevõtete jaoks väga oluline. Kui ligipääsetavus pole konkurentsivõimelisel tasemel, lähevad investeeringud mujale, ka Eestist väljapoole ; Kaasaegse äripargi ja lennuvälja arendamine kutsub esile äri- ja tööstuse ümberkujundamise, mis aitab täita Euroopa Liidu eesmärke mitmel tasandil – süsinikuneutraalsus, jätkusuutlikkus ja vastupidavus ; Optimaalse suurusega lennukid väikeste mahtude jaoks ja kaasaegse tehnoloogiaga varustatud lennuväli loovad kulutõhusa aluse lennutransporditeenustele ; L ennuvälja areng mõjutab selle keskkonda mitmel viisil. Lennuväljast saadava kasu saavutamise keskmes on lennuvälja piirkonnas asuvad ettevõtted ja operaatorid. Lennuvälja lähedal asuvad ettevõtted saavad kasu reisijate lendude võimalusest ja lennukaubateenuste osutamisest. Narva lennuväli tagab parema ühenduvuse reisijatele ja lennukaubale kogu Ida-Virumaal. L ennuvälja teenustest on oluline mõju Ida-Virumaa ja Eesti regionaalmajandusele. Parem ühenduvus lennutransporditeenuste kaudu tõstab praeguste ettevõtete konkurentsivõimet ja aitab meelitada piirkonda uusi ettevõtteid. Turismiatraktsioonid muutuvad paremini kättesaadavaks. Jõukama ärielu tõttu on Narva linn ja Ida-Virumaa haritud tööjõu jaoks atraktiivsem. Kõik see parandab Ida-Virumaa mainet. Redstone areo ja Destia poolt koostatud l ennuvälja arendusprojekti teostatavus-tasuvus analüüs selles sisalduvate põhjalike järeldustega on lisatud taotlusele; Olgina lennuvälja ja selle juurde planeeritud äripargi projekti elluviimiseks on vaja teostada taristu projekteerimistööd, korraldada finantseerimine (toetuste taotlemiseks on möödapääsmatu maa omandi üleandmine IVIA omandisse), viia läbi riigihanked ning taristu välja ehitada (teed, trassid); Võttes arvesse eeltoodut, pöördub SA Ida- Viru Investeeringute Agentuur Teie poole taotlusega võõrandada tasuta üleandmise teel mitterahalise sissemaksena IVIA sihtkapitali suurendamiseks Lennuvälja kinnistu Narva-Jõesuu linnas, Soldina külas (katastriüksuse tunnus 85101:003:1275 ) vastavalt RVS § 37 lg 2 p 2 ja § 33 lg 1 p 2 . Nimetatud riigivara on vajalik riigi poolt asutatud SA Ida- Viru Investeeringute Agentuur tema põhikirjas sätestatud ülesannete täitmiseks: „S ihtasutuse põhieesmärk on ettevõtluskeskkonna arendamine ja majanduskeskkonna mitmekesistamine Ida-Virumaal ;“ . SA Ida- Viru Investeeringute Agentuur viib pärast riigivara võõrandamist IVIA omandisse läbi kinnistute jagamise vastavalt detailplaneeringule, infrastruktuuri projekteerimise ning põhiinfrastruktuuri trasside väljaarendamise. Sihtasutus aitab kaasa uute otseinvesteeringute kaasamisele piirkonna ettevõtluse arenguks. Lugupidamisega /allkirjastatud digitaalselt/ Teet Kuusmik SA Ida- Viru Investeeringute Agentuur juhatuse liige 5114685
[email protected] www.ivia.ee
NARVA-OLGINA
BUSINESS PARK &
AERODROME
NARVA-OLGINA
BUSINESS PARK &
AERODROME
A feasibility study for a
sustainable and
competitive business
ecosystem
2
Foreword
This feasibility study is a main part of the project ER201 «Preparations for
establishing an industrial and logistics complex "Olgina Industrial Park/Airfield"
in order to start regular flights between the border regions of North-East
Estonia and South-East Finland, as well as to increase the investment and
tourist attractiveness of the border region Narva, Narva-Jõesuu, Sillamäe»
which is implemented under the European Neighborhood Instrument and co-
financed by the European Union.
The geopolitical environment of Estonia has changed drastically during recent
years. At the same time there is an urgent need to renew the industrial sector
to align with EU emission reduction goals. In a difficult situation, there are
many possibilities to create new business opportunities regarding green
technology and advanced digital solutions. In the new operational environment,
Ida-Viru requires new connectivity to western countries to boost the regional
industry and form new business connections. To serve this need, the
development of Narva-Olgina Business park & Aerodrome is suggested.
This study is done to improve the knowledge of the impact and opportunities of
the planned Narva-Olgina Business park & Aerodrome to business and tourism
in Narva and the Ida-Viru area. The whole country of Estonia will benefit of it.
The feasibility study is made by Redstone AERO in collaboration with Destia
Ltd. Redstone AERO is an aerodrome developer and operator in Finland.
Destia is the biggest infrastructure company in Finland planning, building and
maintaining transport and energy infrastructure.
3
KEY HIGHLIGHTS
1 2 3
Ida-Viru’s operational
environment is changing Narva-Olgina business park and
Aviation is changing Whether it is economical or geopolitical, there is a aerodrome
for the better new possibility to renew industry and create better Creating state of the art facilities to a greenfield
Zero emission and dynamic aviation services are connectivity with modern technology. The start of destination is an advantage as there are limited barriers
coming – this opportunity should be used and hydrogen production and the production of for development. An optimal future aerodrome can be
made the most of. The change will first happen in sustainable aviation fuel in Narva could created from the ground up. The central pillar of
smaller aerodromes. significantly increase the competitiveness and technical infrastructure must be the availability of
attractiveness of the entire region for new renewable source of energy (solar or wind)
investments.
4 5 6
Narva-Olgina business park and
aerodrome vision in three phases The development includes business
1. Business park with 23 separate plots and 24/7
A unique business model that benefits
park development, aerodrome facilities
aerodrome for unscheduled aviation. the whole region
A combination of public and private co-operation
and aviation services
2. Regional zero carbon aerodrome with
These three functions create an ecosystem with
development accelerating economic environment enables the efficient aerodrome and sustainable
in the business park other industrial parks that improves the region’s
flight operations
3. State of the art future aerodrome integrated with attractiveness and competitiveness.
business park
SUMMARY 4
SUGGESTED OPERATIONAL MODEL AND IMPACTS OF
NARVA-OLGINA BUSINESS PARK & AERODROME
KEY DRIVERS SOLUTION OPERATIONS MODEL IMPACTS
Industrial transformation Developing a business park An operations model built Better international
and aerodrome to boost the around public infrastructure connectivity with sustainable
Geopolitical changes economic situation of Eastern and private operations aviation
Estonia. • IVIA will own the
infrastructure that will be Leads to:
Critical raw materials and
funded by public • Increased business
electrification Corner stones of activity
authorities
development • Business park will be • Increased tourism
Sustainable energy • Sustainable development formed by companies that attraction
from the beginning have synergy with the • Increased population and
Technological development • High efficiency with aerodrome and aviation labour force
newest technology services Investments resulting from
• Goal to create user • Aerodrome will be the development of the
friendly and agile services operated by a private business park & aerodrome
Estonia as a forerunner in
that benefit the regional operator that will focus on can cover all the costs of
digitalization
and national economy profitable operations and running the aerodrome. It is
marketing the aerodrome important to understand the
wider economic impacts.
5
REPORT STRUCTURE
The feasibility study is separated in four chapters
CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4
- BACKGROUND - VISION AND PREREQUISITES – OPERATIONS MODEL – CONCLUSIONS
The future of aviation Background Introduction Feasibility summary for phase one
• Background • Vision for Estonian aviation • General information on aerodrome
• New low emission technology • Key drivers for development of the development Opportunities and risks
• Technology development Narva-Olgina business park and • The synergic functions of the
aerodrome aerodrome Checkpoints for success
Operational environment of • Examples of future aircraft
Ida-Viru Benefits and impacts of the
• Geographical context Aerodrome vision aerodrome
• Operational environment analysis • Aerodrome vision phases • Understanding the benefits
• Ida-Viru business region • Vision for the energy system • Beneficaries of the business park &
• Industrial and business parks aerodrome development
• Identified needs of different Phase 1 next steps
stakeholders: residents, industry, • Phase one illustration Operational model
tourism, other actors • Five-year plan for business park and • Principles and guidelines
• Narva aerodrome current situation aerodrome development • Roles of different stakeholders
• Catchment area • Recommended operating
• Operational range of next gen aircraft model and financing solution
• Role of the aerodrome operator
Benchmark of Finland • Business model
• Airports and aerodromes in Finland • Marketing suggestions and funding
• Finnish airports outside Finavia opportunities
network • Legal framework
• Case Lappeenranta airport
• Case Helsinki-East aerodrome
6
CHAPTER 1
BACKGROUND
• What is happening in aviation?
• How has the operational environment changed in Ida-Virumaa?
• What is the starting situation for developing the Narva
aerodrome?
• What is going on in Finnish aerodrome and airport discussions?
7
THE FUTURE OF AVIATION
8
GET RID OF THE OLD IMAGE OF AVIATION AND AIRPORTS
Black and white mentality is typical
Development of
• We are stuck in old mental images aircraft
(black icons)
• Development is happening in the
middle ground (green icons) ”Route aircraft”
Flexible and diverse
OLD WORLD aircraft pool for different
• Large, crowded airports use cases
• Pollution
”Recreational
• Large airplanes
aviation”
• Fixed routes
• Slow processes and lead times
NEW ERA Development of
aerodromes and Wider aerodrome
• Small and agile aerodromes and airports airports network
• Carbon neutral operations Remote tower
Digital aerodromes operations
• Varied size of aircraft and airports
• Dynamic matching of demand and supply Highly automated operations ”Large airports &
• Short lead times and added value H hub and spoke”
V D
”Aerodromes”
9
AVIATION EMISSIONS CAN BE REDUCED A LOT
Most of aviation emissions originate from long haul flights – technology is developing in all segments
2025 2030 2035 2040 2045 2050
Regional aviation
< 1 500 km
SAF SAF Hydrogen Hydrogen
74 % of flights departing from EU
airports SAF SAF Hydrogen Hydrogen SAF Electric
Electric Electric Electric SAF
25 % of CO2-emissions
Short haul flights
1 500 – 4 000 km
20 % of flights departing from EU SAF SAF Hydrogen
airports SAF SAF SAF
Hydrogen Hydrogen SAF
23 % CO2-emissions
Long haul flights
> 4 000 km
6 % of flights departing from EU SAF SAF
airports SAF SAF SAF SAF
Hydrogen Hydrogen
52 % CO2-emissions
SAF= sustainable aviation fuel
Data based on Eurocontrol. Estimates of the different energy solutions future
by the work group and based on Clean Sky reports. 9
10
COMPARISON OF CLIMATE IMPACT AND SCALABILITY
Sustainable aviation fuels, hydrogen and battery electric are all options for aviation but use cases will vary
Reduction in climate impact Scalability in the
Example companies that are
Direct Water vapour whole aviation Key challenges
NOx developing suitable aircraft
CO2 & contrails sector
Weight of batteries must be carried and requires
Battery electric regular battery replacements. Charging infrastructure Wright Electric
? and in some cases grid investments are required.
Weight of batteries must be carried, requires regular
Hybrid-electric
battery replacements and two technologies makes the Heart-Aerospace
with SAF ? system more complex.
Bio-SAF Bio feedstock sustainability and adequacy. Airbus, Boeing
Production costs and lack of carbon capture
Synthetic SAF Airbus, Boeing
technology.
Weight of the powertrain (for ex. fuel cells) and higher
Hydrogen electric
volume fuel tanks are required. Treatability of liquid ZeroAvia
(fuel cell) hydrogen and new infrastructure requirements.
Treatability of gaseous or liquid hydrogen and new
Hydrogen
infrastructure requirements. Higher volume fuel tanks Airbus
combustion required.
Based on Clean Sky –report and ZeroAvia estimates
Significant Moderate Limited
11
TECHNOLOGY IS DEVELOPING RAPIDLY VIA AMBITIOUS GOALS
The future of aviation consists of liquid sustainable fuels, hydrogen and electrification
SUSTAINABLE AVIATION FUELS HYDROGEN BATTERY ELECTRIC
ReFuelEU Aviation – Council adopts new law to decarbonise ZeroAvia Successfully Completes Initial Dornier 228 Flight Wright Electric Targets 1 000 Wh/Kg Batteries for Electric
the aviation sector Test Campaign Aircraft
The main objective of the RefuelEU aviation initiative is to UK-based testing campaign sees ten successful flight tests of The company is working with partners such as easyJet, NASA, Y
increase both demand for and supply of sustainable aviation fuels retrofitted aircraft. Installed prototype ZA600 hydrogen-electric Combinator, the Department of Energy’s ARPA-E program, and
(SAF), which have lower CO2 emissions than fossil fuel engine meets highest anticipated performance threshold, paving the Defense Department. The goal is to produce an electric
way for successful certification work. airplane that can carry 100 paying passengers on short flights of
kerosene. The obligation for aviation fuel suppliers to ensure that
an hour.
all fuel made available to aircraft operators at EU airports ZeroAvia’s Dornier 228 flight testing programme is part of the
contains a minimum share of SAF from 2025and, from 2030, a HyFlyer II Project, which is part funded by the UK Government via The company is looking into new battery technology called molten
minimum share of synthetic fuels, with both shares increasing the Aerospace Technology Institute, in conjunction with Innovate battery technology. Wright’s proprietary batteries would be four
progressively until 2050. Fuel suppliers will have to incorporate UK and the Department for Business and Trade. times more energy dense than the lithium-ion batteries that power
2% SAF in 2025, 6% in 2030 and 70% in 2050. From 2030, 1,2% today’s electric vehicles. Such batteries would enable the
Hydrogen-electric engines use hydrogen in fuel cells to generate electrification of hard to decarbonize transportation and mining
of fuels must also be synthetic fuels, rising to 35% in 2050. electricity, which is then used to power electric motors to turn the sectors and make electric aircraft that can carry 100 passengers
aircraft’s propellers. The only emission is low temperature water, possible. High temperature batteries will likely be used first to
Source: EU Commission and SKYNRG
with studies finding above 90 per cent total climate effect help decarbonize the mining industry but could eventually be
reduction. incorporated into aircraft.
POSSIBILITY FOR ESTONIA Source: ZeroAvia Source: Clean Technica
It is estimated that to meet the goals of the new law, over
100 new factories producing sustainable aviation fuels are
POSSIBILITY FOR ESTONIA
needed in the EU alone.
POSSIBILITY FOR ESTONIA
Electrification will happen first in short
Possibility to be a nation that flights and smaller aircraft that have the
enables the use of new hydrogen possibility to transform accessibility of
electric aviation. smaller regions.
12
OTHER TECHNOLOGY TRENDS IN AVIATION
Besides alternative fuels development, a lot is happening in the aviation industry that can be linked with Estonian know-how
AR/VR Information systems
• Personalized customer service and real- • The cost of creating information systems
time information about the flight and airport significantly reduced, which enables new
services. types and more cost-effective sales
U-Space development channels, e.g. for airlines and operations
• U-space is a set of new services relying on a • Training opportunities increase, which save
costs. efficient enterprise resource planning
high level of digitalisation and automation of systems to airports.
functions and specific procedures designed to • Information system development
support safe, efficient and secure access to intensified and continues to improve the
airspace for large numbers of drones operation of airports.
3D printing
Drone and air taxi development • 3D printing technology can be used to
• The drone market is developing rapidly produce spare parts and components for
• The size of the eVTOL aircraft market is aircraft or industry in general, reducing the
currently over 1 billion and is growing AI time and cost of maintenance.
• The aircraft will use U-space in most • Optimization of functions, e.g. scheduling • This technology can also be used to create
operations and through that cost savings prototypes and models, allowing designers
• Identifying faults before they occur, which to test new ideas and improve aircraft
saves costs Improving customer service performance.
information through personalization
Modified from source: Aeologic technologies 2023
13
OPERATIONAL
ENVIRONMENT OF
IDA-VIRUMAA
14
Narva-Jõesuu / Narva
GEOGRAPHICAL CONTEXT
Narva and the planned Narva-Olgina business park & aerdrome are
located in Eastern Estonia
Ida-Virumaa
Planned Narva-Olgina Business
park and Aerodrome
Estonia
15
OPERATIONAL ENVIRONMENT OF IDA-VIRUMAA
Drastic changes open a window of opportunity to do things differently
Political
• Location of Ida-Virumaa in Russian border has been a significant source of Economical
business relations and tourism – from 2022 the border interaction halted • The Russian business has collapsed, and it has a significant influence on Narva area
because of Russian war in Ukraine. economy – a great need to seek new business relations from western countries
• Political decisions in Estonia are supporting the freedom of business life and • The new projects of green industries create demand and opportunities for investments into
the development of technology and digitalization the hydrogen and SAF production projects, the payback of which is based on the needs of
green industry and allows to create additional conditions for using Narva aerodrome as a
testbed for refueling aircraft with SAF and hydrogen in the future.
• Services is the most diverse and dynamic industry for Ida-Viru County, which in 2019 formed
Technological
51 % of the county's GRP (Gross Regional Product). The service sector employs about 77%
• The main industries in Ida-Virumaa are energy, chemistry, metal processing,
of the county's population (including education and healthcare).
mechanical engineering and woodworking. Most industrial enterprises are
• Industry in Ida-Virumaa in 2019 formed 47 % of the GRP of the county. Industry employs
located in the cities of Narva, Kohtla-Järve and Sillamäe.
about 20% of the county's population.
• Estonia is a forerunner in digitalization of services. In the aviation sector, a
Remote Tower center is located in Tallinn, and since April 2023, air traffic
control services of Tartu Airport have been provided from the Remote Tower
Social
• Ida-Viru County had a population of 130 000 people. The average age of the population was
44,9 years, which is higher than the Estonian average (43,8 years).
Ecological • The socio-demographic structure of the population of Ida-Virumaa is characterized by low
• The industry of Ida-Virumaa is based on the use of oil shale which produces levels of education, employment and income, as well as a high proportion of Russian-
large amounts of greenhouse gas emissions, air, water and soil pollution, and speaking population.
waste that covers large areas.
• As part of the European Union’s (EU) Green Deal, Estonia has committed to
reducing net greenhouse gas emissions by 70% by 2030, compared to 1990
levels, and achieving carbon neutrality by 2050. Legal
• Work is currently underway to modernize and diversify the industry, as well as • Extensive regulation stemming from the safety of the aviation industry can
to develop alternative and renewable energy sources. prolong the certification of new aircraft. But on the other hand, there is also
pressure to speed up processes to achieve climate goals
• Tightening of environmental requirements and control in all sectors.
Aviation emissions are increasingly controlled by law, not just incentives.
For example, ReFuelEU Aviation will introduce a mandate for the usage of
sustainable aviation fuels on European airports.
16
IDA-VIRUMAA AS BUSINESS REGION Table: Ida-Virumaa enterprises in the statistical profile by
Versatile business spread across the county forms the basic potential for economic activity (Statistics Estonia 2023)
aviation services
Economic activity Companies
Economic activities total 6686
Agriculture, forestry and fishing 415
THERE ARE OVER Mining and quarrying 6
6 600 COMPANIES Manufacturing 611
LOCATED IN THE IDA- Electricity, gas, steam and air conditioning supply 28
VIRUMAA COUNTY Water supply; sewerage, waste management and remediation activities 34
Construction 785
68 COMPANIES Wholesale and retail trade; repair of motor vehicles and motorcycles 1401
WITH 50+ EMPLOYEES
Transportation and storage 732
Accommodation and food service activities 227
Information and communication 211
Financial and insurance activities 57
Real estate activities 332
Professional, scientific and technical activities 487
Administrative and support service activities 274
Education 120
Human health and social work activities 140
Arts, entertainment and recreation 110
Other service activities 716
Ida-Virumaa TURNOVER IN 2021 3 200 million €
companies:
EXPORTS IN 2022 943 million €
% OF ESTONIAN EXPORTS IN 2022 4,4 %
classification is based on the location of the company’s headquarters Source: Statistics Estonia
17
CURRENT AND PLANNED BUSINESS AND INDUSTRIAL PARKS
Key industrial development will happen in these business areas
Kohtla-Järve
industrial park
Narva-
Olgina Business
Kiviõli business park park & Aerodrome
Kadastiku
industrial park
Jõhvi business park
Kulgu industrial
park
18
INDUSTRY EXAMPLES FROM THE BUSINESS AREAS
Key industrial development will happen in these business areas
Narva-Olgina Business park &
Kohtla-Järve industrial park Aerodrome
Kiviõli business park • Focus on chemical and metal industry • Spatial planning has initiated and
• Trading and business • Example companies: preliminary detail plan has
service companies • Viru Keemia Grupp: shale oil production elaborated
• Similar profile as Jõhvi • Freen Industries: subcontractor services in the fields of • This feasibility study provides
mechanical engineering and metalworking. Produces own wind content for the business area and
generators and solar panels aerodrome
Kadastiku industrial park
Focus on metal industry and high
technology
Example companies
• Aquaphor: water filtration system
producer
Jõhvi business park • Febest: automotive parts
• Trading and business distributor
service companies • Fortaco: strategic partner to the
• In the center of heavy off-highway equipment and
Ida-Virumaa marine industries offering
technology, vehicle cabins, steel
Kulgu industrial park fabrications and assemblies
Extension of Kadastiku industrial park. Focus • Hanza: manufacturing solutions in
on cluster around advanced electro magnetics heavy mechanics
and services around it • Primatek: developer and
Example companies manufacturer of wide selection of
• Neo Performance Materials: investing in powder coatings for industry
new production plant
• MAST Europe: supplier of high-quality
metallurgical products
19
EXAMPLE OF CUTTING-EDGE TECHNOLOGY COMPANIES INVESTING IN
THE REGION – Neo Performance Materials
In the first stage, a €100 million magnet factory will be built in Narva (building
now)
In the second stage, a €150 million extensions will be built (building starting in
2026)
Neo Performance Materials (NPM) which owns Estonia-based rare earth metals maker Silmet will
construct a magnet factory and R&D center in Narva.
Neo Magnequench, a division of Neo Performance Materials Inc. (“Neo” or the “Company”) (TSX:
NEO), recently broke ground on construction of the first rare earth magnet manufacturing facility in
Europe designed to produce specialized rare earth permanent magnets for use in electric vehicles,
wind turbines, and other clean energy technologies.
Based in Narva, Estonia, the plant expects to begin production of permanent rare earth magnets in
2025 sufficient to support the manufacturing of approximately 1.5 million electric cars. Neo’s expected
Phase 2 production of 5,000 tonnes/year can support the manufacturing of 4.5 million electric cars.
Neo’s nearby rare earth separations plant in Sillamäe, Estonia will provide rare earth feedstock to the
Narva plant from the U.S. and other sources. These high-purity magnetic rare earth oxides will be
transformed into sintered neodymium-iron-boron magnets. Neo officials are excited to foster a more
integrated supply chain for sintered rare earth permanent magnets developed from recycled end-of-life
magnets and manufacturing swarf. This process will be the first of its kind in Europe.
Sintered rare earth permanent magnets are used in a wide variety of technologies that increase energy
efficiency, reduce carbon dioxide emissions, and help enable the European Union’s efforts to achieve
carbon neutrality. These magnets are especially integral to the drivetrains of the majority of electric
vehicles manufactured today, where they increase the power and efficiency of the motors. Other rare
earth magnets made by Neo are used in electric motors in battery electric, hybrid electric, and
conventional vehicles, as well as in electronics, water circulation pumps, high-efficiency home
appliances, and many high-efficiency industrial applications.
Source: Neo Performance materials
20
INDUSTRY INSIGHTS – EXPORT INDUSTRY IS HIGHLIGHTED
Narva companies aim for international business and increasing export – better connectivity is needed.
STRONG EXPORT INDUSTRY EUROPE IS THE MAIN MARKET FOR THE IMPORTANCE OF A FUNCTIONAL NEARBY
WITH A GROWTH MINDSET COMPANIES AERODROME FOR BUSINESS
• The interviewed companies highlight the focus on Preferred destinations: • Answers vary based on the company
export which is nearly 100 % for all the companies. • Germany (Dusseldorf, Hamburg, Frankfurt and • Most of the companies see it as important as the travel to
• There are strong plans to increase export, for ex. 20- Munich) the Tallinn airport takes half a day on average (very few
30 % per year for one the companies. • Finland (Helsinki) scheduled departures).
• Sweden (Stockholm) • It is seen that it would be more convenient to get to
• Poland (Warsaw) Narva.
NEED FOR TRAVEL IS RELATED TO EXPANDING • Rumania (Bucharest) Potential and existing business partners would arrive
MARKETS • Israel (Tel Aviv) more often and new opportunities for investment and
• UK (London) partnership would appear. In general, a nearby airport is
Mentions of travel needs:
• Holland (Rotterdam): seen to have positive impact on business.
• Customer and auditor visits at factories
• Norway, France, Spain, Switzerland generally • Some see it more of a convenience but not a must have.
• Maintenance crew visits
Some Finnish customers like to arrive with their cars via
• Business meetings CURRENT USAGE OF HUB AIRPORTS ship.
• Sales and marketing purposes
• Engineering meetings • Tallinn, Riga, Frankfurt, Helsinki, Warsaw, Oslo, and
• Top manager negotiations Stockholm
IMPROVING AIR CONNECTIONS AND NEW BUSINESS
INVESTMENTS
VIEWS ON AIR CARGO POTENTIAL COMPANIES RECOGNIZE THE POTENTIAL OF
DIRECT FLIGHTS FROM NARVA • If good enough connections, new investments are seen
• Currently the potential is seen limited as air cargo is
possible
not seen green – although this might change in the • The aerodrome should have sufficient connections to
• Improved logistics is seen to always increase business
future a range of locations
• Some see that other factors might be more important
Some identified use cases: • Price and time schedule should be optimized
such as competitive price of products, availability of
• Component deliveries • Morning and evening flights between Narva and
skilled people and financial support of the government
• Urgent deliveries of expensive and lightweight Tallinn are seen important
components and spare parts • Direct flights to hub airports or straight to the
destinations are seen promising
Interviewed companies:
Neo Performance Materials, Fortaco Group, Aquaphor International, MAST Europe, Viru
Keemia Grupp (VKG), HANZA Mechanics Narva AS
21
TOURISM IN IDA-VIRUMAA
Recovery from COVID is happening – good connectivity would boost attractiveness of the region
General description • Aidu water sports and leisure centre (2023)
Ida-Viru region tourism sector is rapidly developing. The region holds great historical The effects of the war
value as well as natural potential, including many Estonian records, such as the
In recent years, especially after the start of the war and the closure of borders, and as
highest waterfall, the largest lake system or the longest sandy sea beach, which
a result of the disappearance of the flow of Russian tourists, the international tourism
allows the tourism potential to grow and develop.
marketing of the region is aimed primarily at Finnish tourists.
The aftermath of the COVID19-pandemic
There are strong possibilities to attract Finnish tourists: nature, interesting history,
Because of the pandemic in recent years tourism throughout the world and in the Ida- quality services and a relaxing holiday. The main problem is that even though the
Viru region suffered serious setbacks. But now the tourism sector is gradually direct distance to Finland is short, the actual route goes through the port of Tallinn.
recovering. New tourist services, restaurants and attractions are emerging, aimed at The opening of direct flights would greatly simplify and shorten the path of Finnish
both local and international tourists. Every year there are new objects and tourist tourists to the region, which is ready and waiting for new guests.
products appearing. In the last three years 10 new attractions have appeared.
Since the number of tourists from Russia, which was one of the main external target
During the period 2023-2027 more attractions are expected: markets for Narva, has practically decreased to a minimum level, and the recovery of
this market is not expected in the nearest future, the city of Narva and also the region
• Sillamäe theme park (2023)
is trying to substitute the market, for example by attracting more tourists from
• Kreenholm cultural quarter (2026) neighbouring countries. Finland has been chosen as one of the priority markets. For
• Narva Stockholm Square (2025) travellers, it is extremely important to have a convenient and accessible way to get to
the target place. In this case, the plane is the most convenient and fastest way to get
• Opening of the Narva-Jõesuu lighthouse to visitors and opening of the Narva- to Narva, for example, from Finland. This could be also the way to travel from Latvia. A
Jõesuu local history museum (2025) convenient and fast way to get to the destination is often a key factor in choosing one.
• Development of Sinimäe Museum (2024) If the tourist has to choose between a fast flight, almost a full day of driving or a trip
with several changes of transport modes, the choice will be obvious.
• Vasknarva harbor development (renovation, observation tower, 2026)
• Development of Alajõe village center and beach area (2027)
• Rannapungerja pier and river quay (2027) To develop tourism in the region, it is critical
• Estonian motorcycle hill (2023) to provide fast and convenient connections
for tourists.
22
IDA-VIRU TOURISM CLUSTER 2024-2027
Strong development plans are being implemented to attract new markets and customers
The cluster is moving in the direction of 1 million overnight stays as part of its long-term Focus areas and budget of the tourism cluster
goals. The cluster's goals for this strategic period are to recover to the level of 2019 and to
compensate for the lack of Russian tourists and seek now other markets and target groups.
2024-2027 Investment per year
Some highlights of recent events and future goals:
Estonia 120 000 €
• The number of overnight stays by tourists from Russia decreased from 65,7 thousand
in 2019 down to 14,7 thousand in 2022 (4,3 times). Finland 76 000 €
• The Ida-Virumaa Tourism Cluster has prepared a program to attract Finnish and
Latvian tourists to Ida-Viru. The total budget of the program for the period 2024-2027 is Latvia 82 400 €
689 000 €.
Service development 72 000 €
• As a result of the implementation of this program, the number of overnight stays by
Finnish tourists in Ida-Viru is planned to increase up to 34 000 in 2027, compared to 11 Team 312 000€
058 in 2019 (3 times).
Total 689 000€
Purpose of trip to Ida-Viru 2019-2023/Aug, overnight stays The number of people accommodated in Ida-Viru by
600 000
nationality
300 000
500 000
250 000
400 000
200 000
300 000
150 000
200 000
100 000 100 000
0 50 000
TOTAL Vacation trip Work trip Conferences Other work trip Other trip
0
and training including
2019
2020
2021
2022
2019
2020
2021
2022
2019
2020
2021
2022
2019
2020
2021
2022
2019
2020
2021
2022
health tourism
2019 2020 2021 2022 2023 jaan/aug Source: All countries Estonia Latvia Finland Russia
Source: Statistikaamet
Statistikaamet
23
IDENTIFIED NEEDS OF DIFFERENT STAKEHOLDERS
Current needs summarized
Residents of Large industrial Tourism Owners of Skydivers and RC
the region companies industry private planes sportsmen aeromodellers
Ordinary residents of the city Large industrial companies, All SPAs, large hotels and Owners of private planes Skydivers and sportsmen RC aeromodellers.
of Narva would like to have including those with foreign the wider tourism sector who live in Ida-Virumaa and and those who provide
the opportunity of direct participation or companies enterprises. other parts of Estonia. tandem jumping services. There is an aeromodellers
flights to Tallinn, Helsinki and with large foreign clients. club in Narva, in which at
Riga. They would like that They would like to be able to They would like to be able to least 50 novice aircraft
They need the ability to use airplanes will be able to fly to store aircraft in hangars jump at the Narva-Olgina modelers study. In addition,
In addition, they would like to the runway for arrivals and the Narva-Olgina airfield all during the fall and winter. airfield. At the moment they there are about 25 an
have the opportunity to departures year-round and in year round and in any During the period when the are going to jump to Rapla aeromodellers in the city who
spend free time and get any weather for business weather and bring groups of intensity of flights due to lack (EERA). According to the produce aircraft models and
impressions from flights. Potential passengers foreign tourists who would of weather conditions is information received from regularly participate in
recreational flights over are company owners, top then use tourism services on significantly reduced. In them, the annual number of competitions. At the airfield,
Narva and Narva-Jõesuu management, clients, weekends or for a longer addition, they would be jumps they perform in Rapla competitions in radio-
(15-20 minutes), glider auditors from major large period. interested in whether the is at least 400 controlled models in class F3
flights, parachute jumps. clients. aerodrome offers services to according to the international
carry out the maintenance classification are held at least
These are the first reactions and work necessary to obtain 3 times a year.
of people to the news that or extend airworthiness;
the local governments of
Narva, Narva-Jõesuu and
Sillamäe have plans to
develop the Narva-Olgina
airfield.
24
NARVA AERODROME CURRENT
SITUATION
Modest starting point is an advantage – state of the art
development from the beginning
Aviation activities
For the last 3 years, the following flight activities have taken place at the
airfield in Narva
1. Private recreational flights, from May to September on average about 200
flights per season;
2. Parachute jumping on Saturdays and Sundays with an average of about
150 jumps per season;
3. Air taxi flights began in 2023. During the period from May to September,
23 flights took place on airplanes and helicopters. Air taxi flights from X-GIS. Estonian Land Board. All rights reserved.
Narva were to Tallinn, Tartu, Riga, Helsinki-East, Milan, Burgas;
Information
The grass runway is 600 m long
The land belongs to the Ministry of Regional Affairs and Agriculture
There is currently no airfield operator
Detail spatial planning has been initiated
There is no controlled airspace above the airfield
X-GIS. Estonian Land Board. All rights reserved.
25
NARVA AERODROME CATCHMENT AREA AND ACCESSIBILITY
Accessibility to western countries is vital in the current operational environment
Roads Catchment of Narva aerodrome
The aerodrome is located right next to the European route E20
• To Tallinn via road 2h 25 min
• To Riga via road 5h 50 min
Public transport
The aerodrome is located 3 km from the main public transport routes in
Narva – there is a possibility to extend the network when the aerodrome
development starts.
Catchment area
EU population:
- 1.95 million people within 200 km
- 6,81 million people within 400 km
- 13,5 million people within 600 km 200 km
- 19,8 million people within 800 km 400 km
- 39,2 million people within 1,000 km
600 km
of Narva aerodrome 800 km
+ population in non-EU countries
1 000 km
Around 140 major airports and 240 other
airfields within 1,000 km of Narva aerodrome.
Source: Eurostat
(2021 population census: preliminary results)
26
AN EXAMPLE OF OPERATIONAL RANGES OF AIRCRAFT
Operational ranges of next gen aircraft are ideal for regional aviation
Two zero emission aircraft with serious
commercial potential in the near future
Aircraft operational range from Narva-Olgina Aerodrome (certifications pending)
Battery electric Eviation Alice
• Max operational range of around 400 km
• 9 passengers
• MTOW 7475 kg
• Max Cruise Speed 250 kts
Retrofitted hydrogen fuel cell
Britten Norman islander
• Max operational range of 200 km
• 9 passengers
• MTOM (kg) 2994
• Payload (kg) 680
• Uses gaseous hydrogen
Similar operative costs than with a
50-seater traditional turboprop aircraft.
Modified from source: Evia Aero
27
NEXT GEN AIRCRAFT AND NARVA-OLGINA AERODROME
Many major hubs and regional airports would be accessible
With the retrofitted hydrogen fuel cell Britten
Norman islander, 200 km operational range
Potential destinations
• Tallinn
• Tartu
• Helsinki-East
• Helsinki-Vantaa (Finnair hub)
• Lappeenranta
With the fully electric Eviation Alice, 400 km
operational range
Potential destinations
• Riga (Air Baltic hub)
• Tampere-Pirkkala (Air Baltic hub)
• Saaremaa
• Joensuu
200 km
400 km
In the 2030s the operational ranges will be
extended which opens opportunities for new 600 km
markets. 800 km
1 000 km
28
BENCHMARK
OF FINLAND
29
BENCHMARK OF FINNISH AIRPORTS AND AERODROMES
Main airport network owned by Finavia – network changes actively under discussion
Network structure and ownership The renewal of aviation is a current topic in Finland. Helsinki
East Aerodrome and its owner Redstone Aero are the
State-owned airport company Finavia owns 20 airports in
leading actors in developing and testing new aviation
Finland. There are a few airports outside Finavia network
technology and operation models of the airports and
and dozens of smaller aerodromes all over Finland.
aerodromes. There has also been a project in co-operation
Lappeenranta and Enontekiö airports have been detached
between Finland and Sweden about electric aviation on both
from the Finavia airport network and are now municipality Airport
sides of the Gulf of Bothnia.
owned. Seinäjoki airport has never been in the Finavia
network. Its owners are the city of Seinäjoki and the Future
municipality of Ilmajoki, the wellbeing services county of Aerodrome
The vision of the future of aviation in Finland contains a wide
Ostrobothnia and a few private businessmen. Mikkeli airport
air connection network. The basis for this is a wide network
is owned by the city of Mikkeli. Helsinki East Aerodrome is
of cost-effective airports and aerodromes which are
located in Pyhtää municipality and is owned by the private
equipped with the newest technology. All this enables
company Redstone Aero Ltd.
prosperous development of air transport services with a
Finavia airports work as a network with a hub and spoke - variety of different size aircraft from small drones to middle
system. Helsinki-Vantaa airport is the biggest airport in the size business aircraft and bigger route traffic aircraft. This is
network and in Finland. Its income is used to support smaller the vision also for air cargo.
airports which have not been profitable on their own.
Finnish Ministry of Transport and Communications is
Recent events currently preparing an Aviation strategy that would take into
account the recent events and the development of the
Recently there has been discussion on the position of certain
aviation sector.
regional airports and the ownership base of them. They do
not have – and cannot have – large passenger volumes, but
their small business passenger volumes are important for the
airport regions and to the whole nation. Some actors focus
only on the direct income of the airport and do not regard
airports as profitable enough. However, the business
connections between the Finnish regions and other countries
are very important, and so is the accessibility from abroad to
the industrial municipalities in different parts of Finland.
30
FINNISH AIRPORTS OUTSIDE FINAVIA NETWORK
Airports that have separated from the Finavia network
ENONTEKIÖ SEINÄJOKI
Key focus: Winter tourism Key focus: logistics, general aviation
AIRPORT OPERATOR
Enontekiö Airport Ltd AIRPORT OPERATOR
(Enontekiö Municipality) Seinäjoki Airport Ltd
City of Seinäjoki, municipality of Ilmajoki,
INFRASTRUCTURE OWNER wellbeing services county of Ostrobothnia
ENF Infra Ltd and a few private businessmen
(Enontekiö Municipality)
INFRASTRUCTURE OWNER
Rengonharju foundation
(owned by local municipalities)
LAPPEENRANTA
Key focus: Developing Lake Saimaa
Region tourism and accessibility SMALL AERODROMES
AIRPORT OPERATOR HELSINKI-EAST AERODROME Key focus: Recreational aviation
Lappeenranta Airport Ltd Key focus: Future aviation,
(Lappeenranta Airport Foundation) Helsinki secondary airport
AIRPORT OPERATOR
AIRPORT OPERATOR Flight Clubs
INFRASTRUCTURE OWNER
Redstone AERO OY
Lappeenranta Airport Foundation
(privately owned)
(City of Lappeenranta) INFRASTRUCTURE OWNER
INFRASTRUCTURE OWNER Local municipality
Redstone AERO OY
(privately owned)
31
STORY OF LAPPEENRANTA AIRPORT
Oldest airport in Finland
Lappeenranta airport is the oldest airport in Finland and started as a military airport in 1918.
The runway is 2500 m x 60 m. The regular route traffic started 1951 and in 2000 there was 14 daily
flights. Finnair ended its flights to Lappeenranta in 2002.
The new railway connection from Helsinki to Lahti decreased the rail travel time to Lappeenranta
significantly. For this reason, the flight passenger volumes between Lappeenranta and Helsinki
collapsed.
In 2009 new international routes to European destinations were opened. In 2001 the airport
reached its record in passenger volumes, 116.000. More than a half of passengers were from St.
Petersburg area.
In 2016 the airport was bought by Saimaa Airport Foundation (owned by City of Lappeenranta and
Regional Council of South Karelia). This was a pilot case in Finland as first airport, which was
separated from Finavia airport network serving the interests of the region. The aim was and is to
secure easy accessibility to Lake Saimaa and southeast region of Finland focusing on developing
tourism industry and business travel needs for the region. Working actively with tourism authorities,
airports, airlines, owners and stakeholders in Finland, Russia and Central Europe, new
management team made Lappeenranta the main Ryanair destination in Finland providing direct
flights from Germany, Austria, Italy and Hungary. In 2020 the covid-19 pandemic collapsed the
passenger traffic and the Russian war in Ukraine decreased the Russian share of the passengers
remarkably. However, the model of active co-operation with different stakeholders proved to be
successful.
Lappeenranta Airport has been in close co-operation with the tourism actors in Saimaa lake region.
It has been successful in marketing the airport to airlines and other actors. Co-operation has been
active also with European airports.
32
HELSINKI-EAST AERODROME
Future aviation testbed
Helsinki-East Aerodrome (ICAO: EFPR) is located in Southern Finland in Pyhtää municipality. It is
serving professional general aviation.
Helsinki-East aerodrome has an asphalt paved runway of 2000 m long and 30 m wide for commercial
operations
The owner and operator of Helsinki-East Aerodrome is Redstone AERO. The aerodrome will be developed
as a center for future electric and digital aviation. Many technology companies related to aviation and
aircrafts are located at the aerodrome. They are developing all kinds of aviation technology. Helsinki-East
Aerodrome and the area in Southern Coast of Finland offers excellent possibilities to testing flights for
various operators.
PHASES OF DEVELOPMENT OF THE AERODROME
1. Technical feasibility 5. Clearing and leveling 9. Instrumental approach
3. Environmental permit
• Inspecting the surrounding areas for of the area 7. Laying over the first procedures
• Applying for an
limitations for an aerodrome • Clearing obstacles and layer of asphalt • Design and publication
environmental permit
• Soil studies and land surveying to leveling the ground • Aerodrome is now of instrumental approach proc
• Estimating and planning of
estimate needed work, surface leveling • Blasting bedrock usable for small planes edures for operations in bad
the desired operations
and bedrock blasting • Groundwater control weather
2017 2023
4. Aerodrome construction 6. Foundation for the 8. Aerodrome 10. To be done in the future
2. Acquiring the land permit pavement holding permit • Runway lighting
• Acquiring the land and surrounding • Deciding basic specifications • Preparations and foundation • Holding permit for • Fencing around the aerodrome
areas for the aerodrome and for the runway and apron the existing • Aerodrome manuals for commercial
applying the aerodrome asphalt aerodrome airport operations
construction permit • Fueling area preparations • Air traffic control
33
CHAPTER 2
VISION FOR THE
NARVA-OLGINA
BUSINESS PARK &
AERODROME
• What are the key drivers for the development of the business
park and the aerodrome?
• What does the vision include?
• What are the next steps for development?
34
VISION FOR ESTONIAN NEW ERA AVIATION
The role of Narva aerodrome is to act as a forerunner for new era aircraft and operations models
FOCUS
• Smaller emission
free aircraft
• Sustainable
airport and
aerodrome
network that
brings benefits
for the whole
country
• New operation
and business
models
35
KEY DRIVERS FOR DEVELOPMENT OF THE NARVA-OLGINA BUSINESS
PARK AND AERODROME
6 drivers can be identified that argue for the development
Estonia as a forerunner in
Industrial transformation Good digitalization
• Need to diversify industry and connectivity, new Development • Strong expertise available
greening the industry logistics facilities platforms and • Application in aviation business
Narva-Olgina
• Need to attract new business and the sources “beacons” for models and processes should be
business park new solutions
that enable green transition – of renewable sought
energy are and aerodrome are needed
new business potential • Drone business is growing rapidly in
required development
logistics and data acquisition
• Physical facilities are required
New tech needs
Potential for air
to find business
cargo and air
Critical raw materials and cases and real- Technological development
cargo land
world
electrification services • Advanced tech and new era
applications
• Electrification of societies aircraft are coming
Need for air
• EU Critical raw materials act Logistics hubs • Small scale aviation will change
connections
– reducing dependence on non- ideal for energy dramatically in smaller countries
”across the
European countries production such as Estonia and Finland
seas”
• Narva’s industry is critical, for ex. • A possibility to be forerunners in
rare earth magnet manufacturing tech development and usage
Sustainable energy Geopolitical changes
• EU emission reduction targets • Pressure to find new markets from
• Massive development of energy western countries
production, storage and • Need for face-to-face sales work
distribution is required and networking
36
CORNERSTONES FOR NARVA-OLGINA BUSINESS PARK
AND AERODROME DEVELOPMENT
The development of Narva aerodrome will have influence on Ida-Virumaa business life, regional
economy and the competitiveness of whole Estonia. The aerodrome is an instrument for development of
business and tourism and the attractiveness of Ida-Virumaa as an investment area.
The scale of benefits must be understood. The impact of one single industrial investment to Narva-
Olgina business park or other IVIA industrial parks can cover all investments in the aerodrome.
Quick accessibility is of great significance for companies. If the accessibility is not in a competitive level,
investments will go somewhere else, even outside Estonia.
Developing the state-of-the-art business park and aerodrome induce an industrial transformation that
will help meet the objectives of the European Union on many levels – carbon neutrality, self-sufficiency and
resilience.
Optimal sized aircrafts for small volumes and the aerodrome equipped with modern technology will
provide a cost-effective basis for air transport services.
37
EXAMPLES OF FUTURE AIRCRAFT
Next gen aircraft are coming – it is up to the actors to start using them to boost the region’s economy
Wingcopter Eviation Joby Aviation ZeroAvia
Heart Aerospace ES-30 Evektor EV-55 Rolls-Royce Accel Dronamics
Lilium Supernal Elroy Air Vertical Aerospace VX4
38
FEASIBILITY OF PASSENGER AIR TRAFFIC
Between Narva-Olgina & Helsinki-East Aerodrome – flight route and operations
ANALYSIS:
Business travel
Efficient operations with low-cost aircraft Tourism
• In the first phase Pilatus PC-12, Daher Kodiak, Cessna Caravan or similar Commuting
aircraft that can use sustainable aviation fuel blends
• In the second phase electric and hydrogen aircraft can be piloted between the HELSINKI-EAST NARVA-OLGINA
aerodromes – both can act as forerunners of using next gen aircraft in real-
world conditions
Service level and profitability
• Better utilization rate with smaller aircraft can be achieved and is a must for
cost-effective operations
• At first profitability can be sought with an on-call service that could include
many destinations from Narva-Olgina aerodrome in addition to Helsinki-East
30 min
• Regular flights need time and trust to build the customer base, and this is seen Flight time with smaller aircraft –
as an opportunity in the long run – more on-demand based operations are using Russian airspace
HELSINKI-EAST
suitable in the early days of the aerodrome
• Profitability will be indirect (see next chapter) at first and direct after the route
has established continuity and customer base. This is typical for new air
connections. 35 min
Flight time with smaller aircraft –
Possibilities evading Russian airspace
• Brings Narva close to Helsinki and Southeastern Finland's economic region
and will create new possibilities in business and tourism that are presented on
the map on the right
• New regional route will expand the market area for industries in both countries
NARVA-OLGINA
39
FEASIBILITY OF PASSENGER AIR TRAFFIC
Between Narva-Olgina & Helsinki-East Aerodrome – passenger potential Lappeenranta University and XAMK (university
of applied sciences in Kouvola and Kotka)
The passenger potential consists of business travellers, investors, workforce and Strong expertise in energy technology studies and
tourists. The amount of business travel depends on the business relations formed business.
between the two nation’s companies. There is also a lot of workforce travelling Kymenlaakso business potential Potential for Estonia in the larger energy transition
scheme
between Finland and Estonia that could benefit from a fast connection to Finland – • Strong industry: forest, chemical,
construction and technology industry Benchmark visits, research cooperation and also
especially related to new construction projects that are happening in business potential
Kymenlaakso. companies
• Gross domestic product (GDP) was
Number of accommodated Finnish tourists in Ida-Viru 42 000 euros per resident and
county Genuine Progress Indicator (GPI) 5
900 euros per resident (2020).
12 000 • Future: € 3,7 billion investments in
10 000 battery technologies and many other
8 000 investments for green tech such as
biocarbon, hydrogen, solar etc
6 000
Potential for business relations
4 000 especially regarding new green tech HELSINKI-EAST
2 000 Business relations meetings, sales, 70 km
customer visits radius
-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Finnish tourism potential
• One of the key markets for Ida-Viru
70 km population catchment from Helsinki-East
tourism cluster aerodrome
• Tourism was growing before COVID,
and has started to recover over 65 years old 69 108 Finnish capital region
• Easy and fast flight connections can • Close by Helsinki-East – NARVA-OLGINA
15-64 years old 149 920
be combined with tourism services fast connection via road
• Key potential lies within attracting 0-14 years old 34 217 • All the largest company
Finnish senior citizens that have time headquarters
Population total 274 403 Ida-Viru
and money (nearly 70 000 seniors Many business • Strong chemical and metal industry
near Helsinki-East) opportunities and fast
0 100 000 200 000 300 000 • Potential markets and business
accessibility via Helsinki- relations with Finnish stakeholders
East Customer visits, cooperation during
sales processes
40
AERODROME VISION PHASES
The vision is separated in three distinct phases – the first the most concrete, the
second an ambitious target and last one being a forerunner pathway
FOLLOWER INNOVATOR FORERUNNER
1-5 years 5-10 years > 10 years
PHASE 1 PHASE 2 PHASE 3
24/7 aerodrome for Regional zero carbon State of the art
unscheduled aviation aerodrome future aerodrome
• Paved 1 200 m runway Remote control infrastructure Automated maintenance
• Maintenance hangar Passenger terminal Verti- and droneports
• Storage hangars for general and private Charging for aircraft and road vehicles Advanced digital processes in passenger
Aerodrome aircraft 100 % sustainable aviation fuel tanks and and cargo flow management
facilities • A small café and a briefing room fuelling system
• On-demand business flights serving local Electric/hydrogen aviation test routes to Wide network of regional flights with zero
export companies Tallinn and Helsinki-East emission aircraft
• Recreational aviation Extended on-demand flights with digital Digital on-demand service of aviation
Aviation
MaaS-service incl. last mile services services
services
Drone logistics network
• Solar energy park and energy storage Sustainable aviation fuel production in High value component manufacturing
• Service and maintenance companies regions Industry parks – distribution at the Automation companies
• Technical infrastructure (electricity, natural aerodrome. There is preliminary interest to Wide road and air cargo facilities
Business park gas, internet communication, water and start production of SAF in Narva using a Small electric plane
sewerage) grant from the Just Transition Fund manufacturing/assembling; + UAV, eVTOL
• 23 separate land plots with an area from E-commerce logistics with air cargo and Drones assembling and testing
1607 m2 up to 5002 m2 Office and meeting space
41
VISION FOR THE ENERGY SYSTEM OF THE BUSINESS
PARK & AERODROME Primary use. Charging needs of
eVTOL craft, Drones and fixed-
The goal is that the aerodrome and aviation services can be organized with zero emissions wing hybrid or electric craft.
Preliminary cost for a megawatt
The energy storage based on charger is 0,5 million euros +
used batteries evens out load possible grid investments.
A solar power plant can be peaks and enables the storage of
established in southern part of solar energy and electricity grid Electric aircraft Megawatt charging
the business park. energy during low-cost hours.
charging system
Aerodrome
electricity needs
Solar panel field A shared use area can make
Short term
operations more efficient, and
battery the chargers can be put to
storage Charging needs of High power more use.
trucks in the area charging and slow
charging Overnight charging needs - the
Additional energy Hydrogen opportunity to use cheap
from the grid production energy.
and long-
term Hydrogen
storage distribution
Obtaining energy from the Waste heat can be used,
electricity grid when the for example, to heat Hydrogen storage and Hydrogen can also be used to
production of solar panels in the buildings. distribution to hydrogen produce electric fuels for
area cannot meet the needs. aircraft aviation needs in the long term.
A great potential for Ida-
Virumaa that has a goal to
move away from fossil fuels –
alternative usage for existing
factories.
42
NARVA-OLGINA BUSINESS PARK AND AERODROME IN PHASE ONE
In five years, the aerodrome will be up and running and will have necessary facilities to serve unscheduled air traffic
Meeting space & Aeronautical services
cafe Terminal
• On-demand unscheduled
Maintenance flights
hangar Private hangars • Recreational aviation
Non-aeronautical services
1 200 m paved • Meeting space for
runway businesses and
recreational purposes
• Café service
Production and
warehouse
facilities Business park
• Service and maintenance
companies
• High value production that
Service and
can benefit from air cargo
maintenance
in the future
companies
Possible location of
solar panel park and Technical infrastructure
• Electricity (3MW), natural gas (600m3/hour), water and
energy storage.
sewerage
• The business park land will be divided into separate plots: 2
plots with an area of 1837 m2, 5 plots with an area of 1607
m2, 4 plots with an area of 3034 m2, 12 plots with an area of
5002 m2;
43
AERODROME DEVELOPMENT IN PHASE 1
Next steps to complete phase one of the vision
PRELIMINARY PHASE DEVELOPING THE AERODROME IN PHASE 1 DEVELOPING THE BUSINESS PARK IN
PHASE 1
• Before phase 1, the preliminary phase starts from current • The aerodrome development begins with land and location related
situation and should be active until the beginning of studies. • Can be done in parallel with the aerodrome
construction of aerodrome facilities. development
• The table below shows the steps and preconditions needed to
• This phase should be financed by local authorities equally start the unscheduled operations at the aerodrome. • Requires the building of public infrastructure.
by 2 000 EUR annually from each (Narva, Narva-Jõesuu, After this the plots can be sold to suitable
• The exact time this will take can’t be said as there are some public
Sillamäe). companies.
decision making required that might take time.
• As a result, aircraft can start using the runway. The grass
• The costs are based on Finnish examples and may vary
• In the early stages, also the solar panel park
runway at the airfield must be always well-trimmed and can be built, and necessary grid investments
depending on circumstances at Narva-Olgina aerodrome.
there must be a minimum infrastructure for pilots (briefing be made.
room with toilets).
Aerodrome 1. Land and 2. Approvals 3. Preparation work 4. Pavement 5. Approach 6. Buildings
location procedures and
weather station
Investments / tasks • Technical • Environmental • Clearing • Paving of the • Design and • 1500 m2 hangar
feasibility permit of obstacles and runway and apron publication of for aeroplanes
• Ownership and • Aerodrome land levelling asphalt instrumental • Briefing room and
control of land and construction permit • Preparations of • Windsock and approach café
surrounding areas runway strip and other mandatory procedures for bad • Fencing system
• Soil studies apron equipment weather • Sewage and
• Foundation for the operations freshwater system
runway pavement • Weather station
• Runway lights for
night operations
Cost estimate 1 000 000 € 150 000 € 1 000 000 € 500 000 € 1 500 000 € 2 500 000 €
44
IMPLEMENTATION SCHEDULE OF PHASE 1
Preliminary phase and phase 1
Action Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Total cost
Feasibility study 60 000
Spatial (detail) planning with environmental impact
assessment 47 000
Preliminary project for technical infrastructure 20 000
Transfer land ownership to IVIA
Getting permission to build the technical infrastructure of a
business park and aerodrome
Tender for construction of the technical infrastructure of a
business park and aerodrome 3 000
Construction of the technical infrastructure of the business park
gas 800 000
water 200 000
sewerage 440 000
electricity 1 000 000
telecommunication 40 000
street lighting 330 000
roads 2 145 000
Construction of the aerodrome infrastructure
Clearing of obstacles and land leveling, preparations of
runway strip and apron, foundation for the runway
pavement 1 000 000
Paving of the runway and apron asphalt, windsock and
other mandatory equipment 500 000
1500 m2 hangar for aeroplanes storage and maintenance,
briefing room and café, small fencing system 2 000 000
Approach procedures, weather station and runway lights 1 500 000
Phase 1 complete: Q1/26
Total and preliminary cost estimate: 9,6 million €
45
CHAPTER 3
OPERATIONS MODEL
Principles
Understanding benefits
Recommended operations model
Marketing and funding
46
DEVELOPING THE BUSINESS PARK AND AERODROME
Introduction to the operation model
The development of the business
area that benefits from the
aerodrome can also be helped
The aerodrome-based Aerodrome Development
Business park and "from the outside". In cooperation
business area is made
development from the outside between the public and private
possible by a aerodrome
from the inside (Public-private sectors, synergistic activities can
development-friendly development
(Aerodrome owner cooperation) be found in connection with the
airport operator and flight
airport, which can benefit from
connections that serve and operator)
the airport immediately (=flights)
customer needs.
Passenger or indirectly (=the aerodrome
transport Air cargo attracts other actors or activities
useful to the company).
Air traffic connections serve as the
basis of the business area's
operations.
Aerodrome’s role is to provide quality
connectivity for the business region.
47
THE SYNERGIC FUNCTIONS OF THE AERODROME
Vision of the different functions at and around the aerodrome in long the run
Direct effects:
• The outer ring
stakeholders benefit Regional and national
from the inner ring stakeholders benefitting
activities Industry from the aerodrome
Tourism
New business
partners Narva-Olgina
Improved County Business Park
Commerce
competitiviness
Fast and sustainable 3D-printing
Public authorities E-commerce Municipalities
logistics Narva-Olgina Aerodrome warehousing
Spare part Indirect effects:
warehousing Operating Recreational Air cargo • The system
the airport aviation Cities described creates an
Passenger facilities
flights ecosystem that
Non-aeronautical improves the regions
ATC activities vitality and traction
Office/
Component meeting • This leads to more
Air cargo space people, labour force
manufacturers
and companies
Energy production locating in the region
Service and maintenance Industrial diversity
companies increases
The region’s and
nation’s economy
benefit
48
UNDERSTANDING THE BENEFITS
The challenge is that the cost of running the aerodrome are visible, but the benefits are difficult to see beforehand
As the regional and national economy benefit from the
aerodrome directly (via better connectivity) and indirectly
(from increased economic activity), it is important that the
Day-by-day operations beneficiaries participate in funding of the aerodrome in
some way.
Aeronautical
revenue Airlines
Examples of wider
Wider economic economic impacts
Direct impacts • National economy: GDP, jobs and tax
impacts
revenues
Non-Aeronautical • Business activity: trade, labor
revenue Indirect benefits for availability, productivity, innovation,
Aerodrome supply chains, investments and
operator Direct benefits from regional economy business location decisions
the aerodrome • Vitality of the region: image of the
region, international tourism and
Private funding competitiveness of remote areas
(optional) Indirect benefits for • Consumer welfare
national economy • Security of supply, operation of the
defense forces and crisis aid
Aerodrome
infrastructure
Public funding Examples of direct impacts What are wider economic impacts?
• Better connectivity Air transport's most important social significance lies in its
• New business opportunities wider economic effects on the performance and growth of
• New jobs other industries. Aviation improves the efficiency of other
• Improved efficiency industries across the spectrum of economic activity, and
this is called a catalytic effect or "spin-off" benefits. For
• Direct tax revenues
example, the direct impact of one euro of GDP from air
transport generates 3 euros for other industries and one
direct job from air transport creates 4.1 jobs for other
industries. Source: ATAG
49
BENEFICARIES OF THE BUSINESS PARK &
AERODROME DEVELOPMENT
Multiple actors can benefit from the induced effects of developing a new aerodrome
Better connectivity to form business relations The development of Narva aerodrome will influence
Industry Improved logistics supply on its environment in many ways. It is important to
Faster business trips – the region is more attractive for investments use different kind of possibilities to gain all
beneficaries.
Better accessibility of tourism destinations
Tourism Developing sustainable tourism concurrently with sustainable aviation At the core of achieving the benefits from the
aerodrome are the companies and operators inside
New possibilities for recreational activities the aerodrome area. Companies near the aerodrome
Population Possibility for recreational aviation will benefit from the possibility of passenger flights
Possibilities for travelling close from home and the supply of air cargo services. Narva
aerodrome will provide better connectivity for
Enabling profitable flight operations passengers and air cargo of the whole Ida-Virumaa
Flight operators Keeping aircraft utilization rate high county.
Improved attractiveness of the county There will be a significant influence from the services
Ida-Virumaa county Improved regional economy of Narva aerodrome to the regional economy of Ida-
Virumaa and Estonia. Better connectivity by air
Improved attractiveness of the nearby municipalities
transport services will increase the competitiveness of
Municipalities Potential for more working age population to improve municipal economy
current companies and help attract new companies to
Public emergency and ambulance flights
the area. The tourism attractions will be more
Easier to maintain and create new business relations accessible. Because of more prosperous business
IVIA Improved chances to find new companies for industry park plots life, the city of Narva and Ida-Virumaa will be more
attractive for educated labour force. All of this will
Improved national accessibility improve the image of Ida-Virumaa.
The government of Boosting GDP and innovations
Estonia Image as a forerunner country in new era aviation
New possibilities for science studies
Research and education Education possibilities regarding new aviation technology and operations
50
OWNERSHIP AND OPERATIONS OF THE AERODROME
Principles and guidelines
FUNCTIONS PERSPECTIVES
Principles based on experiences
in Finland BRANDING, MARKETING AND • Important to improve visibility
SALES • Stakeholders must see that they benefit from the aerodrome
• Flexible and lean decision structure is a
must
• Local politics can slow down processes • Operators need an aerodrome that is open when needed
FLIGHT OPERATIONS • Costs should be reasonable
• Important to engage and communicate
with local stakeholders
• The group of beneficiaries is wide, a
beneficiary pays principle should be
AIRPORT OPERATOR • Development minded operator is required
implemented
• Operator must have an interest to market
the aerodrome actively
• Sufficient private ownership makes dealing BUILDINGS • Buildings can be owned by private entities
with regulation easier
• Ownership of the infrastructure and
operations should be separated • Ownership is critical for longevity of the aerodrome. Doing
AERODROME
• Public infrastructure is recommended as INFRASTRUCTURE
business with infrastructure is not suggested (compare road
infrastructure should not necessarily be and rail network vs. aerodromes)
the focus of business – operating the
aerodrome should
• Should enable the extension of the aerodrome and business
LAND OWNERSHIP
park if required
51
ROLES OF DIFFERENT STAKEHOLDERS
IVIA’s role is critical for the long-term success of the aerodrome. The company is the “glue” between the private operator and public funding.
IVIA will own the critical Aerodrome operator should be a private company that Aerodrome operator’s customers are
The land area will be owned by IVIA aerodrome infrastructure. IVIA can focus purely on operating the airport. A contract with airlines and other users at the
that will sell the plots for customers. is funded by public more detailed obligations between the infra owner (IVIA) aerodrome. Main revenues come from
IVIA will use the sales revenue to cover organisations. The money will be and operator (private) shall be made. Development minded these entities. The more there is activity
own financing for construction of used to maintain and improve operator is required. The operator will be chosen based on at the aerodrome, the better the
technical infrastructure of the business the aerodrome infrastructure. a tender. profitability.
park and aerodrome.
As a result of the sale at market prices Aerodrome
of all plots of land that will be formed in infrastructure Airlines Industry, trade, tourism,
Aerodrome
the business park, IVIA will receive (runway, terminal, Aeronautical population, public
operator operations
revenue in the amount of 1,44 million technical organizations
euros, which is about 15% of the equipment)
previously calculated investment into
the technical infrastructure of the Other users
business park and aerodrome (9,6 Non-aeronautical
Land area Business park such as cafés etc.
million euros). IVIA uses this revenue Industry
to cover own financing when attracting property
funds from the various European
Structural and Investment Funds.
Business park
infrastructure Industry
(water, electricity etc.)
Business park infrastructure will be
Business park property and
Business park property built by infrastructure companies. Funding
infrastructure customers are mainly
will be owned and operated comes from IVIA and from various
industry. Recreational activities within the
by private entities. European Structural and Investment
area have ordinary people as customers.
Funds.
Example of wider economic impacts 52
• New business relations and better connectivity enabled by the
RECOMMENDED OPERATING aerodrome and aviation services can lead to a new industrial
investments.
• If the new investments employ 500 persons in total:
MODEL AND FINANCING SOLUTION
Infrastructure ownership is public and funded via public funds –
aerodrome operator is private and operates commercially. Thus, the aerodrome can be Regional economy effect: National economy effect:
run efficiently and there is stability in ownership and operations. Additional € 1 million Additional € 4,8 million tax
tax revenue annually revenue annually
OPERATIONS
Private operator Direct impacts Wider economic impacts benefit the region and state
• User fees
• Efficient Region’s population, Indirect benefits for
operations • State tax revenue Business activity:
Non- industry and tourism national economy
• Private • Trade
Aeronautical aeronautical • Flight connections
funding if • Air cargo services • Labor availability
operations operations
necessary Better connectivity • Productivity
New business Indirect benefits for • Innovation
opportunities regional economy • Local tax revenue • Supply chains
New jobs • Investments and
Aerodrome operator Improved efficiency business location
Direct tax revenues Vitality of the region: decisions
image of the region, • Tourism income
Basic international tourism Attracting new
infrastructure population
• Non-profit • More population
Aerodrome infrastructure • IVIA owned Consumer welfare More activities
• More consumption
owner • Public • More taxes
Security of supply,
INFRASTRUCTURE funding Health services
ambulance flights
PUBLIC ORGANIZATIONS
The public organizations (municipalities, county, and state) get the benefits,
Money from different public funds (Estonia or
so they help fund the aerodrome infrastructure owner (IVIA). This creates
EU) can also be used to maintain and develop
longevity and helps keep the aerodrome up and running with enough
the aerodrome.
profitability
Calculation assumptions
Local tax: (2 000 € - 500 €)* 11,89 % = 178,35 € (per person per month)
State tax: (2 000 € - 500 €)* 8,11 % + 2 000 € * 33,8 % = 797,65 € (per person per month)
53
TRADITIONAL RESPONSIBILITIES OF THE AERODROME OPERATOR
General information
Aerodrome operator responsibilities AIRPORT
• Economic responsibility of operations MANAGER
• Handling and applying the needed approvals
• Maintaining the safe condition of the aerodrome
• Air traffic controlling
• Ground handling of passengers and cargo SAFETY OPERATIVE
MAINTENANCE
MANAGEMENT ACTIVITY
• Sales and communications
• Fuelling
Operator contract possibilities
• The operator can be outsourced to handle the operational functions. This is
recommended for the first phase to guarantee the service level of the aerodrome in FUEL SUPPLY
GROUND HANDLING
the first phases SECURITY CHECKS AIRCRAFT
PASSENGER SERVICES
MAINTENANCE
• The aerodrome can be rented for the operator as a whole. This is only possible, if
the customer flow is sufficient
• Owner operated
There are three options for transferring the aerodrome infrastructure to the operator Option number 1 is suggested in the first phase
1. Local governments and some of the state institutions pay to the operator • Outsourced operator, who is paid to keep the aerodrome
for maintaining the aerodrome infrastructure in operational condition operational and offer the desired services to the visitors and
users of the aerodrome
2. Operator gets to use the infrastructure for free
3. Operator rents the aerodrome commercially • Pricing can vary greatly depending on the desired service level
• Paying for the operator is mandatory at first to create the
demand and make the aerodrome profitable
54
BUSINESS MODEL FOR NARVA-OLGINA AERODROME
Business model canvas for the aerodrome
KEY KEY VALUE CUSTOMER CUSTOMER
• The key clients of the PARTNERS ACTIVITIES PROPOSITIONS RELATIONSHIPS SEGMENTS
aerodrome are regional
Beneficiaries: Private aviators
actors of Ida-Viru CEO Personal
Narva-Jõesuu Marketing Airport Operations as a Hangar rentals
Relationship
• The clients of the business Municipality Sales Service
Maintenance companies
Airport Operations
park are the companies that Digital Airport Service Providers:
Narva Minicipality, Air Traffic Control Private aerodrome
benefit from locating near Sales Manager Personal
Sillamäe Municipality Customer service Customised Proposition operator
Relationship
an active aerodrome with Use in R&D projects, based on Local
Union of Ida-Virumaa Requirements Beneficiaries:
international connections infrastructure & service Investments according to
Municipalities development Easy and fast Travel customer’s needs Municipalities
• The aerodrome is run by the
Regional Organisations
Estonian Aviation Low traffic allows the airport
private operator with close KEY to be used as a testbed DISTRIBUTION
Academy Export Industries
cooperation with IVIA RESOURCES CHANNELS
Close to the city center (4 Tourism Companies
Tallinn University of km)
Technology Passengers
Digital Airport incl Remote Source of renewable Person-To-Person
Tower energy Service Providers:
Estonian Aviation Cluster
Airport Manager Key Partners
For regions: Air Traffic Carriers
Tallinn Airport
Marketing and Sales org. Accessibility Digital Tour Operators
Dual Fiber Connection Vitality At airport: p2p & digital
COST STRUCTURE REVENUE STREAMS
One Time Cost: Set up Aerodrome Environment Landing/Passenger Fees
Recurring Fixed Costs: Air Traffic Control, Management, ICT Space Rental (Hangars, Office, Service Space, etc.)
Recurring Variable Cost: Passenger Service, Maintenance Beneficiaries Yearly Fees
55
MARKETING THE BUSINESS PARK AND AERODROME
Integrating the development area to wider marketing schemes is strongly suggested
Marketing aerodrome development and the targeted operations. It's MARKETING
important to prepare the business presentation carefully
The marketing strategy of the business park and
targeting the optimal partners and customers. These
FRAMEWORK
aerodrome should be integrated with the general
events also offer excellent networking opportunities National marketing
marketing of the region. Therefore, a separate marketing • Invest in Estonia
and source for new ideas for business
budget is difficult to present. Main marketing stakeholders
development. Some of the feasibility study content can be
are IVIA, the regions municipalities and also the industry
directly used to market the business park and aerodrome.
itself that can promote the region. For example, local
municipalities should always include the aerodrome in Recommended events:
their marketing material when accessibility is discussed. Regional marketing
For latest tech development and meeting industry
Same goes for the tourism cluster. New sustainable
professionals: • IVIA, municipalities
tourism concepts can be created around next gen aircraft and cities
and zero emission operations. • Tech Runway (Aug), Finland
The Narva-Olgina business park and aerodrome are an • AIRTECH (Oct), Germany
integrated solution that should be marketed as such. Both Narva-Olgina business
• AERO Friedrichshafen
park and aerodrome
functions should be at the center of the marketing
strategy. Key topics of marketing that can be integrated: In the longer run (phase two or three), when airport is stakeholder’s marketing
ready for commercial passenger traffic: • IVIA, aerodrome
• Business park: New opportunities for companies to operator & businesses
invest and locate next to an aerodrome and have • Routes Europe (May) Tourism marketing
synergy advantages.
• Connect Conference (Feb) • Ida-Viru tourism
• Aerodrome: “region’s economic motor”, better cluster
accessibility, state of the art aerodrome
development, sustainable actions.
Events
IVIA marketing budget for Narva-Olgina
There are a lot of various opportunities to promote the
business park and aerodrome
aerodrome business opportunities. Marketing events
should be selected based on the relevant stage of
A yearly marketing budget of 5 000 € should be
reserved for event costs and social media
marketing in the preliminary and first phases. This
helps to increase the recognition of the business
park and aerodrome development. Events are
excellent opportunities for marketing and
networking.
56
FUNDING OPPORTUNITIES
Funding the development of business park aerodrome require strong focus on themes that are currently supported
MAIN THEMES/SUGGESTIONS THAT FUNDING
APPLICATIONS SHOULD BE BUILT AROUND
The development is about connecting Eastern Estonia to western partners PREREQUISITES FOR
FUNDING THE DEVELOPMENT
• The development is based on highly sustainable methods and focuses on improving
the accessibility of a region that has taken heavy hits due to geopolitical events. Development is in in line with EU taxonomy
• Improved regional accessibility increases the economic and social conditions of the The EU taxonomy is a cornerstone of the EU’s sustainable
municipalities finance framework and an important market transparency
Sustainability is at the heart of development tool. It helps direct investments to the economic activities
most needed for the transition, in line with the European
• The goal is to create a zero-carbon aerodrome that supports the usage of next gen Green Deal objectives. The taxonomy is a classification
aircraft – this is in line with the European Green Deal goals system that defines criteria for economic activities that are
• Differentiation between old views of airports and future aerodromes aligned with a net zero trajectory by 2050 and the broader
environmental goals other than climate.
Don’t separate the business park and aerodrome development
• The development consists of both business park and aerodrome development EU funding opportunities
(synergy) • Horizon Europe (research and innovation)
The development supports industrial transformation of Estonia • InvestEU (Green, resilient and digital investments,
• A piece of the puzzle – opportunity to boost green energy investments and make use private and public funds)
of next gen aircraft • Connecting Europe Facility (key energy, transport and
New technology development and real-world usage digital infrastructure cross Europe)
• Act as a beacon of new technology development • Digital Europe Programme (accelerate the recovery and
drive the digital transformation of Europe.)
• A platform for companies to test and use their latest technology
• “Usage of new tech, such as electric cargo drones, will happen somewhere. We Estonia funding opportunities
want to make it happen here. “ • Just Transition Fund for Ida-Viru county
• Estonian Business and Innovation Agency
• Estonian State Shared Service Center
57
LEGAL FRAMEWORK
Legal aspects to consider when building an Aerodrome in Narva
The following laws and regulation should be considered in the preliminary phase:
• Environmental laws
• Desired environmental permit must be applied in the early phases of the project
• https://www.riigiteataja.ee/en/eli/517062022003/consolide
• Construction laws
• Aviation law & Land use and construction law regulate construction and buildings
• https://www.riigiteataja.ee/en/eli/513122013003/consolide
• Aviation laws
• Aviation law dictates the process on how to build an airfield and the basic formal
requirements for it
IFR operations near the Russian border
• https://www.riigiteataja.ee/en/eli/510072014015/consolide
• The proximity to Russian border affects IFR
• EASA ADR (European aerodrome/airport regulation) operations especially when approaching from east.
• EASA ADR regulates the runway specifications, safety areas, runway lights etc. • The IFR approach procedure's design should be
• The goal is to build an airport. Therefore, it is recommended to follow EASA ADR done in collaboration with Estonian aviation authority
regulation from the beginning of the construction to avoid problems later to accept the exceptions
• https://www.easa.europa.eu/en/document-library/easy-access-rules/easy-access- • Modifying the runway position and direction for easier
rules-aerodromes-regulation-eu-no-1392014 approaches should be considered at the preliminary
phase
• If the relations with Russia get back to normal at
some point, it should be possible to make the
approach from the Russian side.
58
CHAPTER 4
CONCLUSIONS
59
FEASIBILITY SUMMARY FOR PHASE ONE
Establishing the Narva-Olgina business park and aerodrome
Factor Positives Negatives
• Land will be owned by IVIA which makes decision making easier and
• Russian border – effects to flight rule planning and limits the maximum size of
helps with resources
Technical the aircraft
• Detailed planning has started
feasibility • Technically no barriers for creating a new aerodrome and business
area
• Small aerodromes are seldomly profitable by themselves – larger catalytic
• Public funding is available, and IVIA is proactive in the development effects must be considered and understood
Financial
• With the right operational model, invested money from public will • Initial investment is larger than in the maintenance phase – might be politically
feasibility return to the regional economy with a multiplier challenging
• Local industry is indicating that flights would be used – there are over • Russian markets are closed – significant share of markets is unusable
6 600 companies in the county • Estonian aerodrome operator market undeveloped
Market • Tourism is trying to be boosted and interesting markets are nearby • There might not be a culture of flying in the region – it might take time for the
feasibility • Aerodrome operators available in nearby countries companies to start using the services
• There is demand for sustainable technologies and expertise to • Demand potential is difficult to estimate due to change operational
provide these in Estonia environment
• IVIA has enough resources to advance with the planning • The operations of the aerodrome require a professional operator with
Operational • There is enough expertise to build the aerodrome and necessary experience
feasibility facilities • The operating of future digital aerodromes is still in development so there are
always some problems
60
OPPORTUNITIES AND RISKS
Identified opportunities and risks that should be mitigated with proper planning
Opportunities Risks
• Better connectivity for • Lack of understanding/communication
Ida-Virumaa’s companies, passengers and cargo of the benefits can lead to reduced funding
• With proper marketing and focus the aerodrome with its • Losing the funds for operating the aerodrome
catalytic effects can be profitable for whole region. • Political risk of longevity as public money is being used
Invested money will return to the regional and state to maintain the infrastructure
economy.
• The development of aerodrome is delayed for any
• Support for growing industry and tourism of Ida-Virumaa reason
• Boosting the economy, labour force and prosperity of • Less passengers and cargo than expected
Ida-Virumaa
• Competing activities in the area
• Expansion of Narva-Olgina business park
• "Flight shaming" before more sustainable aviation
• Forerunner position in new era aviation in Estonia options
• Creating a new ownership and operation model of an • Legislative issues or delays in aerodrome approval
aerodrome in Estonia processes or building rights
• The vision can be established in steps • Flight operational issues due to the location near
Russian border
• Problems with environmental approvals
61
CHECKPOINTS FOR SUCCESS
Clear goals and understanding of success factors will set the development on the right path from the beginning
GOALS CRITICAL SUCCESS FACTORS KEY ACTIONS
• Take full advantage of Estonian competence in
Aerodrome is up and running in an Maximum usage of digital and automated solutions. High- digital solutions
efficient and carbon neutral manner quality and effective processes defined and implemented. • Involve private and public actors in the
development of the aerodrome
Operating the aerodrome must be The finances must be in order and the contracts must be • Clear revenue model and separation of
profitable to ensure longevity long-term infrastructure and operations
Efficient and professional operations Skilled personnel with the right attitude • Choose the aerodrome operator with care
• Analyse in more detail the wider economic
The aerodrome and aviation services
The surrounding region, municipalities and other actors are impacts
increase the region’s accessibility and
committed to the aerodrome’s success • Communicate the benefits clearly for key
attractiveness
stakeholders
• Contact airlines that plan to use next gen
Increased air traffic from the aerodrome aircraft
Active marketing and sales work
with zero emissions • Seal deals with operations and plan the routes
with industry
Cooperation with with Estonian Aviation Academy and other • Active contacts with the Academy
Co-operation with educational institutions
institutions • Participation in Academy events
62
NARVA-OLGINA
BUSINESS PARK &
AERODROME
NARVA-OLGINA
BUSINESS PARK &
AERODROME
A feasibility study for a
sustainable and
competitive business
ecosystem
Marit Pani
From: Teet Kuusmik <
[email protected]>
Sent: teisipäev, 5. november 2024 09:49
To: Regionaal- ja Põllumajandusministeerium
Cc: Piret Hartman; Priidu Ristkok
Subject: Taotlus
Attachments: 1-633 IVIA_Regionaal ja Põllumajandusministeerium .asice
Categories: Yellow category
Tere
Käesolevaga edastab SA Ida-Viru Investeeringute Agentuur Taotluse kinnistu (Narva-Jõesuu linn)
mitterahaliseks sissemakseks SA Ida- Viru Investeeringute Agentuur sihtkapitali suurendamiseks
Lugupidamisega
Best Regards
Teet Kuusmik
SA Ida-Viru Investeeringute Agentuur juhatuse liige
Ida-Viru Investment Agency, member of Board
tel +372 5114 685
e-mail:
[email protected]
www.ivia.ee
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