Arabia Circular Hub Helsinki promotes circular economy innovations and business activities

Objective

The Arabia Circular Hub Helsinki project involves the design and launch of a circular economy-focused cluster for businesses in the industrial district of Arabia, Helsinki. The aim of the Arabia Circular Hub Helsinki is to specifically support the business activities, production processes, product innovations, as well as regional and international R&D collaboration of small and medium-sized circular economy companies.

In addition to a physical and virtual environment, the project will create an active ecosystem and a supportive program of cooperation, expert services, models to support ideation and innovation, as well as open up opportunities for R&D collaboration. The project will also organize events to highlight funding possibilities related to circular economy innovation activities.

The target group of the project consists of circular economy SMEs and startups in the Uusimaa region. The target group also includes the regional R&D ecosystem related to the circular economy, such as local universities and development companies. In addition, businesses or other organizations already based  near the hub in the Arabia area are part of the target group. The operational  model of the hub will be developed in cooperation with the Arabia 135 block, managed by Varma. During the project, the aim is to establish the hub’s activities and create a sustainable business model for it.

Main objectives of the project

1. Increase collaboration, innovation, and business activities for circular economy companies
   The project will focus on developing collaboration and innovation activities among circular economy SMEs by, for example, identifying usable side streams, shared resources, business cooperation potential, and innovation partnerships. This will strengthen the business and competitiveness of companies in the target group, as well as promote circular economy development more broadly in Helsinki and the Uusimaa region.
2. Create an operational and operator model for the Circular Hub
   The project will co-develop the operational and operator model of the Circular Hub to serve SMEs in the circular economy sector. The model will include a physical space concept, digital and physical services for businesses, and the activities of the hub. The continuity of the hub  will be ensured by engaging the right actors.
3. Increase international and R&D network activities for circular economy actors
   The project will identify key R&D players and international hubs in the circular economy field. It will also help companies network internationally.

Project duration, partners, funding and budget

• The project will run from October 1, 2024, to September 30, 2026.
• The project is carried out in cooperation with Business Helsinki.
• The total budget of the project is €638,000, with Forum Virium Helsinki’s share amounting to €299,000.
• The project is co-financed by the European Union and the Uusimaa Regional Council (ERDF).

Role of Forum Virium Helsinki

Forum Virium Helsinki is the coordinator of the project and will carry out the project in collaboration withthe City of Helsinki’s Economic Development Department Business Helsinki. Forum Virium Helsinki is responsible for developing and applying models for innovation activities and co-developing the operational model for the Circular Hub. Forum Virium Helsinki will support Business Helsinki in the design of the hub’s physical space concept and the development of the operator model. It will also define, select, and develop digital services supporting the hub’s operations in collaboration with the network.

Forum Virium Helsinki is also responsible for developing international networks, and identifying and promoting new cooperation opportunities. Additionally, Forum Virium Helsinki will handle project communications.

Benefits for Helsinki

Helsinki has identified the circular economy as a key means of achieving its carbon neutrality goal by 2030. As a capital city, Helsinki has the opportunity to create the conditions for the successful implementation of a circular economy, supported by the city’s Action Plan for the Circular and Sharing Economy. According to Helsinki’s Environmental Protection Targets, the city and businesses are expected to transition to a carbon-neutral circular economy by 2040, in which natural resources are used sustainably and products and materials are kept in circulation for as long as possible.

Helsinki has signed the European Cities Circular Economy Declaration, which aims for the transition from a linear to a circular economy. Achieving these ambitious goals requires close collaboration with the business sector and measures to support the operational conditions for circular economy businesses.

The aim of the Arabia Circular Economy Hub project from the city’s perspective is to improve the conditions for businesses to create new, circular economy-based, and growing business activities, enhance the internationalization of companies in the area, and increase R&D cooperation with regional stakeholders.

Sustainability

The Arabia Circular Economy Hub strengthens circular economy expertise and business activities in the Helsinki area, helping the city achieve its carbon neutrality goal.