Fortum and Seabased Industry receive positive response from Swedish Energy Agency regarding investment grant for wave power project

Fortum Corporation
Press release
11 February 2010

Fortum and Seabased Industry receive positive response from Swedish Energy
Agency regarding investment grant for wave power project

Energimyndigheten, the Swedish Energy Agency, announced approval of an
investment grant today for the planned full-scale wave power project near Smögen
in the municipality of Sotenäs in Sweden. The grant entails that the agency will
contribute SEK 139 million (approx. EUR 14 million) of the total investment of
approximately EUR 25 million. The state-funded grant is welcome in further
developing the technology for commercialisation. With the demonstration project,
Fortum can develop wave power into a significant source of energy in Europe.

In May 2009, Seabased Industry in collaboration with Fortum, submitted an
application to Energimyndigheten, the Swedish Energy Agency, for an investment
grant to participate in the programme for renewable energy.

"We are happy with the Swedish Energy Agency's positive response. The future
looks promising if the technology can be developed to become reliable and
competitive. Planning continues and we are now awaiting permits from the Swedish
Environmental Court and the EU. We have started planning for electrical grid
connections and concession applications, and hope for a speedy permit process",
says Göran Hult, senior advisor, Fortum Power.

About the project

With the technology, which is not yet commercially mature, the planned
wave power plant is to be the world's largest full-scale installation of its
type, with 420 interconnected units. The output will be approximately 10 MW.

The environmental impact assessment has been submitted, along with permit
applications. A review by the EU will determine whether Fortum will make use of
the awarded investment grant. The planned investment requires an investment
decision by Fortum.


The Swedish Energy Agency is tasked with supporting and stimulating development
of commercially viable, renewable energy production through investment grants.
The agency has previously made decisions on four projects. Fortum and Seabased
Industry's project is the fifth and final project of this programme.

Seabased Industry AB is an Uppsala-based company that develops new technology
for extraction of energy from sea waves. The company is closely associated with
the research on wave power conducted at Uppsala University.

Fortum Corporation
Corporate Communications

For more information, contact:
Göran Hult, Senior Advisor, Fortum Power Division, +46 (0)70 344 54 98
Annika Bremer, Communications Manager, Power Division, +46 (0)76 814 40 82