Fortum negotiating the restructuring of Naantali power plant's ownership

Fortum Corporation
Press release
15 November 2010

Fortum negotiating the restructuring of Naantali power plant's ownership

Fortum, Turun Seudun Maakaasu ja Energiantuotanto (TSME), Turun Seudun
Kaukolämpö, and Turku Energia have started negotiations regarding a new
operating model for energy supply in the Turku region of Finland. In the new
model, the region's energy production would be consolidated to one co-owned
production company, TSME. The owners of TSME are Turku Energia (42.5%) and
Fortum (42.5%) as well as the municipalities of Raisio (9%), Kaarina (3%) and
Naantali (3%). The operating model under planning was presented today to
representatives of the cities.

As part of the restructuring now being negotiated, Fortum would initially lease
and possibly later sell its Naantali power plant to TSME. The district heat
produced would be sold to Turku Energia, the steam to Fortum and the electricity
to TSME shareholders. The aim is to reach a final decision on the restructuring
during the first quarter of 2011.

Currently, energy production in the Turku region is largely based on the heat
and electricity production of Fortum's Naantali coal-fired power plant. The
power plant produces annually about 1,000 gigawatt-hours (GWh) of electricity
for the Nordic market, about 600 GWh of steam for industrial customers, and
about 1,500 GWh of district heat for Turun Seudun Kaukolämpö Oy's heat
transmission network. The plant has been operating for 50 years, and its renewal
will become topical in the near future. Fortum has launched an environmental
impact assessment (EIA) on building replacement energy production capacity in
the Naantali power plant area.

Fortum Corporation
Corporate Communications

Additional information:
Jouni Haikarainen, Vice President, Heat Division,
Finland, tel. +358 (0)40 709 5690