Fortum Corporation STOCK EXCHANGE RELEASE 15 February 2005
Fortum to build biodiesel production plant in Porvoo, Finland
Fortum has decided to build a biodiesel plant at its Porvoo oil refinery. The
total budgeted cost of the investment is approximately EUR 100 million, almost
one third of which will fall due in 2005 and the remainder in 2006. The plant
will have an annual capacity of roughly 170,000 tons of biodiesel. Construction
will start immediately and the plant is due to commence production in summer
Production of biodiesel will be based on a process developed by Fortum Oil
(future Neste Oil Corporation) that produces high-quality diesel fuel from
vegetable oils and animal fats. Fortum's existing diesel fuel production
capacity at Porvoo is four million tons a year.
Demand for biodiesel is expected to increase in the future since EU is
encouraging its member countries to boost the use of renewable raw materials
also in traffic fuels. The aim of the EU's biofuel directive is to raise the
proportion of biofuels to 5.75 percent of total gasoline and diesel consumption
(energy content) by 2010.
"We are the first oil company to successfully develop a biodiesel production
process and to build significant capacity for it. We are ahead of our
competitors and, once the plant is in operation, we will be able to produce considerably
better biodiesel products than are currently produced by other manufacturers. In
recent emission tests carried out by two leading heavy duty automobile
manufacturers, our new biodiesel proved to be the best," said Kimmo Rahkamo,
President, Components, Fortum Oil.
Fortum Oil's strategy is to be the leading producer of traffic fuels with
reduced environmental impact. Biodiesel produced from renewable raw materials supports
this strategy well.
Senior Vice President, Corporate Communications
Risto Rinne, President, Oil Sector, +358 10 452 4990
Kimmo Rahkamo, President, Components, +358 10 452 4247
A press conference on biodiesel investment will be held on Tuesday, 15 February
2005 at 11.00 a.m. at Restaurant Savoy, Eteläesplanadi 14 (7th floor), Helsinki.
Helsinki Stock Exchange