FORTUM CORPORATION PRESS RELEASE 15 October 2015
Fortum and Lietuvos Energija will form a joint venture to build a
waste-to-energy combined heat and power plant (CHP) in Kaunas, Lithuania. The
CHP plant is expected to be commissioned in the autumn 2019.
UAB Fortum Heat Lietuva will be a minority owner of the new joint venture, UAB
Kauno kogeneracinė jėgainė (KKJ) with up to 49% share. The total investment
cost of the plant is approximately EUR 150 million, of which Fortum's direct
commitment is approximately EUR 20 million. The establishment of the joint
venture is subject to EC merger clearance. The decision is expected by end of
According to current plans, the new plant will use annually approximately
200,000 tons of local municipal waste to produce heat to Kaunas city district
heating network, which serves approximately 111,000 households and 3,500
businesses. The plant is estimated to reduce the CO2 emissions by 65,000 tons
per year. Furthermore, it will significantly reduce the need to deposit waste
in the landfills.
"The new waste-to-energy plant continues Fortum's investments in the Baltic
countries in energy-efficient CHP technology using local fuels. It is also in
line with the National Energy Independence Strategy in Lithuania," says
Vitalijus Žuta, head of UAB Fortum Heat Lietuva. "We have very good experiences
from our first waste-to-energy plant in Klaipeda, Lithuania, which has been in
operation since spring 2013."
The new plant will produce annually approximately 500 GWh heat and 170 GWh
Combined heat and power production is very energy efficient and low emission
production form, where nearly 90% of the fuel's energy can be utilized. During
the past few years Fortum has invested significantly in new CHP plants in
Finland, Sweden, Estonia, Latvia, Lithuania and Poland.
Andrius Kasparavičius, +37069817740, Fortum Spokesperson in Lithuania
Fortum’s purpose is to create energy that improves life for present and future
generations. Fortum’s expertise is in CO2-free and efficient electricity and
heat production. The company also offers energy-related products and expert
services to private and industrial customers and energy producers. Fortum’s
main areas of operation are the Nordic and the Baltic countries, Russia and
Poland. In 2014, the annual sales (excluding the divested electricity
distribution business) totalled EUR 4.1 billion, and comparable operating
profit was EUR 1.1 billion. The company employs approximately 8,000 people.
Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com
Lietuvos Energija group is a state-controlled company group. The main
activities of the group include power and heat distribution and supply, natural
gas trade and distribution as well as construction and maintenance of power
plants and grid. With its more than 5,600 employees, Lietuvos Energija group
controls and operates key Lithuanian power plants ensuring the security of
energy supply, nation-wide distribution network, and services to more than 1.6
million consumers across Lithuania. It also offers electricity supply services,
operates 8.2 thousand kilometers of distributor gas pipelines and supplies gas
to more than 560 thousand customers abroad.