PRESS RELEASE 20 October 2011
Fortum has decided to approve the co-ownership agreement to consolidate Turku
region energy production to the co-owned production company Turun Seudun
Maakaasu ja Energiantuotanto Oy (TSME) in Finland. TSME shareholders are
Fortum, Turku Energia and the municipalities of Naantali, Raisio and Kaarina.
The arrangement requires a favourable decision from all the shareholders, after
which the arrangement would be realised at the beginning of 2012.
Fortum's shareholding in TSME would be 49.5%, Turku Energia's 39.5%, Raisio
municipality's 5%, Kaarina municipality's 3% and Naantali municipality's 3%.
Under the agreement, TSME would have the option to also buy Fortum's Naantali
power plant at a later date. The letter of intent regarding the co-owned
production company was signed in December 2010.
The intention is to transfer Fortum's Naantali power plant, Turku Energia's
Oriketo bioheat plant, the Oriketo waste-to-energy plant, and the Kakola heat
pump plant to TSME's possession. TSME will sell the district heat it produces
to Turku Energia, the steam to Fortum and the electricity to its shareholders.
The entire distribution and sales of Turku region district heat will be
transferred to Turku Energia.
"This solution would enable the development of the energy production in Turku
region together with our current customers. Comprehensive development of energy
production would also improve the competitiveness of district heating as a
heating alternative", says Jouni Haikarainen, Vice President at Fortum's Heat
Turun Seudun Maakaasu ja Energiatuotanto Oy will also continue preparations for
a new base production solution. Alternatives include building a gasification
plant for biofuels in Naantali or a completely new 450-megawatt multifuel power
plant. The goal is to significantly increase the use of biofuels in the Turku
region, which will reduce carbon-dioxide emissions from energy production. An
environmental impact assessment process has already been done for the project.
The intention is to make a decision on the construction of new capacity to
replace the use of coal during 2012.
Energy production in the Turku region today is largely based on the heat and
electricity production of Fortum's Naantali 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 distribution
network. The plant has been operating for 50 years, and its renewal will become
topical in the near future.
Jouni Haikarainen, Vice President, Fortum, Heat Division, Finland, tel. +358 40
Fortum's purpose is to create energy that improves life for present and future
generations. We provide sustainable solutions that fulfil the needs for low
emissions, resource efficiency and energy security, and we deliver excellent
value to our shareholders. Our activities cover the generation, distribution
and sale of electricity and heat as well as related expert services.
Fortum's operations focus on the Nordic countries, Russia and the Baltic Rim
area. In the future, the integrating European and fast-growing Asian energy
markets provide additional growth opportunities. In 2010, Fortum's sales
totalled EUR 6.3 billion and comparable operating profit was EUR 1.8 billion.
We employ approximately 10,500 people. Fortum's shares are quoted on NASDAQ OMX
Further information: www.fortum.com