Fortum to discontinue Meri-Pori carbon capture and storage project

Fortum Corporation
Press release
27 October 2010

Fortum to discontinue Meri-Pori carbon capture and storage project

For the past couple of years, Fortum and Teollisuuden Voima (TVO) have
collaborated on the Finncap project, the aim of which has been to build a
large-scale demonstration plant for carbon capture and storage (CCS) at the
companies' jointly-owned Meri-Pori power plant.

Based on studies that have been done and on the company's updated strategy,
Fortum has now decided to not continue with the project. Consequently, the
Finncap project will not pursue being part of the European Union's CCS
demonstration programme, the application period of which will begin soon. TVO
withdrew from the project earlier this autumn.

Also the technological and financial risks related to the project contributed
to Fortum's decision. Acceptance into the EU programme would have covered only
a portion of the costs of the approximately EUR 500-million project. In
addition to EU funding, the project would have required national funding from
Finland and significant investments from the companies participating in it.

”Finncap has been one of the biggest and most progressive CCS research projects
in the world. According to Fortum's updated strategy, coal condensing is not
within the core of the company's operations; in light of this the risks grew
too extensive”, notes Matti Ruotsala, Executive Vice President, Power Division.

”For these reasons we cannot continue the project. According to our strategy,
we focus on carbon dioxide-free hydro and nuclear power, as well as resource
efficient combined heat and power production. However, Fortum will actively
monitor the development of CCS technology by participating in various projects
in collaboration with other players in the sector," he concludes.

Fortum Corporation
Corporate Communications

Additional information:
Mikko Iso-Tryykäri, Project manager, tel. +358 (0)50 453 2650,
mikko.iso-tryykari@fortum.com