Fortum and TVO to cooperate with Siemens Energy in the field of carbon capture and storage

Joint press release
Fortum / TVO / Siemens
14 October 2009

Fortum and TVO to cooperate with Siemens Energy in the field of carbon capture
and storage

Siemens Energy has been selected as the capture technology partner for the
FINNCAP - Meri-Pori Carbon Capture and Storage (CCS) project by the owners of
Meri-Pori power plant, Finnish utilities Fortum and Teollisuuden Voima Oyj
(TVO). The coal-fired power plant is located at Pori in Western Finland and has
an installed capacity of 565 MW. The CCS demonstration is planned to treat
approximately 50 percent of Meri-Pori's flue gas and to capture 90 percent of
the CO2 it contains. Therefore it reduces the plant's CO2 emissions by some 1.25
million tonnes annually. Meri-Pori's CCS demonstration is among the largest
post-combustion capture projects yet announced in Europe. Fortum and TVO plan to
apply for the European Flagship Programme with Siemens capture technology
combined to a ship transportation and geological storage solution. The selection
for the first tranche of the Flagship Programme is expected to take place in
2011 and the final investment decision in 2011-2012. The plant is scheduled to
be in operation in 2015.

“We have selected Siemens post-combustion carbon capture technology for our CCS
plant, out of several other technologies”, says Tapio Kuula, President and CEO
of Fortum. “The Siemens technology seems especially promising in terms of energy
efficiency and emissions control. Meri-Pori CCS plant is one of the key projects
in Fortum's CO2-reduction programme."

“Fortum's and TVO's decision to use our solution is a breakthrough for the
second-generation post-combustion capture technology in the market“, said
Michael Süß, CEO of Siemens Energy Fossil Power Generation. “The choice shows
that European suppliers for CCS technology are leading the world market.
Considering the whole project concept, we are convinced that Meri-Pori is one of
the top candidates for the European Flagship Programme, and we are proud that
Meri-Pori will apply Siemens technology for carbon capture.”

“Several major prospective suppliers competed for the capture plant. Siemens'
proposal has convinced us with environmentally and financially sound solutions,”
adds Mikko Iso-Tryykäri, Fortum's Project Leader for Meri-Pori CCS Plant. “We
are looking forward to launching the project together with Siemens.” Developing
CO2 capture technology to Meri-Pori power plant supports Fortum's and TVO's
targets in climate change mitigation. Approximately 92 percent of Fortum's
European power production (total 52 TWh) was CO2-free in 2008 and CCS is
considered as an important technology in achieving the company's long-term
target of becoming a CO2-free energy company. At Olkiluoto nuclear power plant
TVO produces annually some 14.5 terawatt-hours of CO2-free electricity, which
stands for approximately 16 percent of Finland's electricity consumption.

“Partnering with Fortum and TVO is a great opportunity for us to bring our
amino-acid salt based capture technology to commercial scale. Therefore, we
value Fortum's early commitment to our technology for this important CCS
demonstration project,” stated Nicolas Vortmeyer, Head of Siemens Energy Fossil
Power Generation New Technologies. The development of Siemens' post-combustion
capture technology is funded by the German Federal Ministry of Economics and
Technology and part of the COORETEC initiative.

The technology for CO2 capture from the flue gas of power plants is an important
feature of the Siemens environmental portfolio. In 2008, revenue from the
products and solutions of Siemens environmental portfolio was nearly EUR 19
billion, which is equivalent to around a quarter of Siemens total revenue.

Press contacts:

Fortum
Mikko Iso-Tryykäri, phone: +358 (0)50 453 2650, mikko.iso-tryykari@fortum.com

Teollisuuden Voima Oyj
Anna Lehtiranta, phone: +358 (0)2 8381 5200, anna.lehtiranta@tvo.fi
Juhani Ikonen, phone: +358 (0)2 8381 5210, juhani.ikonen@tvo.fi

Siemens AG
Alfons Benzinger, phone: +49 (0)9131 18-70 34, alfons.benzinger@siemens.com
Gerda Gottschick, phone: +49 (0)9131 18-8 57 53, gerda.gottschick@siemens.com

Siemens Osakeyhtiö
Kirsi Rejman, phone:+358 (0)50 68 407, kirsi.rejman@siemens.com
Eetu Helminen, phone: +358 (0)40 537 6597, eetu.helminen@siemens.com

The Siemens Energy Sector is the world's leading supplier of a complete spectrum
of products, services and solutions for the generation, transmission and
distribution of power and for the extraction, conversion and transport of oil
and gas. In fiscal 2008 (ended September 30), the Energy Sector had revenues of
approximately EUR22.6 billion and received new orders totaling approximately
EUR33.4 billion and posted a profit of EUR1.4 billion. On September 30, 2008,
the Energy Sector had a work force of approximately 83,500. Further information
is available at: www.siemens.com/energy.

Fortum is a leading energy company focusing on the Nordic countries, Russia and
the Baltic Rim area. Activities cover the generation, distribution and sale of
electricity and heat and the operation and maintenance of power plants. Our
vision is to be the benchmark power and heat company excelling in
sustainability. In 2008, Fortum's sales totalled EUR 5.6 billion and operating
profit was EUR 2.0 billion. The company employs approximately 13,500 people.
Fortum's shares are quoted on NASDAQ OMX Helsinki. Further information:
www.fortum.com

Teollisuuden Voima Oyj is a Finnish nuclear power company founded in 1969 for
safe and reliable production of electric energy to the Finnish society at a
reasonable price. The nuclear power generated at TVO's Olkiluoto plants
accounted in 2008 for ca. one sixth of the total energy consumption in Finland.
Clean energy production not only benefits the Finnish society but also
contributes to the global reduction of environmental impact.