Nuclear and hydropower production
Nuclear power and hydropower have noCO2 emissions and are competitive in terms of variable costs and thus have a significant role in Fortum’s production portfolio. Nuclear and hydro power each account for about 32% of Fortum’s annual power generation. In Europe, where carbon dioxide has a price, about 90% of Fortum's generation is based on nuclear and hydropower, and the high proportion of emissions-free production is a significant competitive advantage to the company. For Fortum nuclear power is base-load production, but hydropower enables fast response to market conditions and thus supports Fortum’s competitiveness in electricity markets, where price volatility is foreseen to increase in the future.
Combined heat and power production (CHP)
In energy- and resource-efficient CHP production, Fortum is inarguably a globally leading expert and, in terms of total production volume, the world’s fourth-largest heat producer. The company's high competence in fuel-flexibility makes it possible to use a wide selection fuels, including bio-based and local fuels, such as waste. These fuels will become increasingly significant in the future.
Expert in energy markets
Active operations on competitive markets as well as the ability to accurately anticipate market development and act accordingly have enabled Fortum’s success in the 2000s. With the integration of the European markets and the liberalisation of the Russian market, Fortum's power market competence will continue to be central in value creation for the company, enabling Fortum to leverage this competence in new areas.