Fortum inaugurates the first large-scale biomass combined heat and power plant in Latvia

FORTUM CORPORATION PRESS RELEASE 11 September 2013

Andris Bērziņš, the President of Latvia, and Sauli Niinistö, the President of
Finland, have today inaugurated Fortum’s new combined heat and power (CHP)
plant in the Latvian city of Jelgava. The new power plant uses biomass as fuel
and will provide district heating to the residents and businesses in Jelgava as
well as electricity to the electricity market. The new plant covers
approximately 85% of the city’s district heating demand.

“Residents of Jelgava, who will receive these daily services, are the winners
of this long-term cooperation between countries in the energy sector. The
cooperation in constructing the plant has been mutually beneficial and based on
good partnership for all parties involved. Our common task is to take full
advantage of available renewable energy resources as well as the knowledge and
technologies of our partners,” said Andris Bērziņš, President of the Republic
of Latvia, today at the inauguration ceremony.

“Combined heat and power production is one of the cornerstones of Fortum’s
strategy. This production form is energy and cost efficient and together with
renewable fuels it is CO2-free,” said Fortum’s CFO Markus Rauramo. “The
simultaneous construction of an identical bio-CHP plant in Järvenpää, Finland,
has enabled efficient use of resources and knowledge and ensured the
availability of the most modern energy technology in Jelgava,” Mr. Rauramo
continued.

Fortum’s new power plant uses wood chips as fuel and replaces old natural
gas-fired heat production in Jelgava, thereby reducing the area’s CO2 emissions
by approximately 44,000 tonnes compared to year 2010. The production capacity
of Jelgava power plant is 23 MW electricity and 45 MW heat. The plant will
produce approximately 110 GWh of electricity and 230 GWh of heat per year. The
technology at the plant provides the possibility to use also other solid
renewables, like peat and wood residues.

Construction of the plant started in August 2011 and has taken about 570,000
working hours to complete. Occupational safety was a priority during the entire
project and was at an extremely good level with only one incident causing lost
workdays. Fortum’s investment in the new power plant and related
infrastructure totalled around LVL 50 million or approximately EUR 70 million.

Fortum Corporation
Corporate Communications

Additional information:
Jaakko Vähä-Piikkiö, Fortum Heat Division, Vice President of Baltic Region,
tel. +358 50 453 2009
Ginta Cimdiņa, Fortum Heat Division, Country Manager of Fortum operations in
Latvia,
tel. +371 26 56 7908


Fortum

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 deliver excellent value
to our shareholders. Our activities cover the generation, distribution and
sales of electricity and heat as well as related expert services.

Fortum’s operations focus on the Nordic countries, Russia, Poland and the
Baltics. In the future, the integrating European and fast-growing Asian energy
markets provide additional growth opportunities. In 2012, Fortum’s sales
totalled EUR 6.2 billion and comparable operating profit was EUR 1.7 billion.
We employ approximately 10,400 people. Fortum’s shares are quoted on NASDAQ OMX
Helsinki.

Further information: www.fortum.com