Heat Division concentrates on combined heat and power (CHP) production and district heating. During the year, Heat continued its CHP investments according to the strategy and also developed and implemented new products for district heating.
Heat owns and operates 20 CHP plants in the Nordic countries, Baltics and Poland. The division has extensive experience in CHP production, waste-to-energy and district heating and cooling. Its customers are businesses and private consumers. In terms of volumes, and including also Fortum’s operations in Russia, Fortum is the fourth largest heat producer in the world.
High availability
Heat Division’s sales volumes in 2011 amounted to 22.6 (26.1) TWh and were mainly generated in the Nordic countries. During the same period, power sales volumes totalled 6.2 (6.5) TWh. The Heat division’s comparable operating profit in 2011 totalled EUR278 (275) million. The increase was due to better availability and lower peakload impact on production costs and improved heat sales margin but were on large part offset by lower volumes caused by warmer weather, lower power prices and higher fuel cost.
Energy and resource-efficient CHP solutions
During the year, Heat made several investments and divestments to support this goal.In 2011, Fortum decided to invest in two new biofuel-fired CHP plants in Jelgava, Latvia and Järvenpää, Finland. The Jelgava plant is the first biofuel plant of this scale in Latvia. Both Järvenpää and Jelgava plants will replace oil and gas production with biofuels and increase the use of local fuels. The simultaneous construction of the plants will also reduce CO2 emissions and save costs.