Fortum to continue its research investments in wave power technology development by acquiring a stake in Wello Oy

PRESS RELEASE 1 September 2014

Fortum has acquired a minority share of 13.6 per cent in the Finnish wave
energy developer Wello Oy. The Penguin wave energy converter solution,
developed by Wello, is based on a floating vessel that captures the kinetic
energy of waves and converts it into electrical power with a generator. The
advantage of the floating vessel is reduced need for massive anchoring.

In Fortum’s view, we are moving towards a solar economy where energy production
is based on renewable energy sources and resources are used more efficiently
than today. As an emissions-free energy production form, wave power can play an
important role in such a future, and that’s why it is also one of Fortum’s
research and development focus areas.

We want to be in the vanguard of the development, so participating in the
development of various wave power technologies is important,” says Heli Antila,
Fortum's Chief Technology Officer. ”The operating principle of Wello’s
technology and how it combines new innovations with existing technologies is
especially interesting.”

Wello’s CEO Aki Luukkainen views the collaboration with Fortum as a natural
step as Wello moves from technology development to the commercial piloting
phase. ”This is an excellent example of a small company partnering with a big
company, which can significantly speed up the development of new technology
into a commercial product. Together Wello and Fortum can take a significant
step in this evolving sector.”

Fortum Corporation
Corporate Communications

Additional information:
Heli Antila, Chief Technology Officer, Fortum, tel. +358 40 571 7188
Aki Luukkainen, Chief Executive Officer, Wello, tel. +358 40 517 8387

Information on Fortum's wave power development:
Fortum has been actively involved in wave energy development since 2007 and has
participated in the development of several technologies. One of these is the
Finnish AW-Energy’s WaveRoller™ technology, which has been successfully tested
off the coast of Portugal. Last year, Fortum also signed a cooperation
agreement with the French marine technology company DCNS to further test and
develop AW-Energy’s technology off the coast of Bretagne, France.

In Sweden, Fortum and Seabased AB are currently cooperating around a
10-megawatt wave power park on the west coast of Sweden, in Sotenäs. It is one
of the world’s largest wave-power demonstration projects and will start
production during 2014. The technology of choice in Sweden is Seabased's linear
wave power generator that is placed on the bottom of the sea.

In February 2014, Fortum signed a leasing agreement with the UK-based Wave Hub
in order to test wave power solutions off the coast of Cornwall. The agreement
provides Fortum with a new opportunity to rapidly deploy advanced, full-scale
wave power converters in ocean conditions. The wave power solution that Fortum
is currently evaluating to be deployed at the site is Wello's ‘Penguin’.

Fortum
Fortum’s purpose is to create energy that improves life for present and future
generations. Catering to the versatile needs of our customers, we generate,
distribute and sell electricity and heat, and offer related expert services.
Our operations focus on the Nordic and Baltic countries, Russia and Poland. In
2013, Fortum’s sales totalled EUR 6.1 billion and comparable operating profit
was EUR 1.6 billion. We employ approximately 8,800 people. Fortum’s shares are
traded on the NASDAQ OMX Helsinki. www.fortum.com

Wello
Wello Oy is a Finnish developer of wave power technology. The company was
established by Heikki Paakkinen in 2008 with the help of business angel Martin
Estlander. The venture capital firm VNT Management Oy and Finnvera decided on
the initial investment in the company in 2009. Tekes – the Finnish Funding
Agency for Innovation has also been a strong supporter of the company.

 

 

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