FORTUM CORPORATION STOCK EXCHANGE RELEASE 20 December 2012 at 18.00 EET
Fortum Värme, Fortum's subsidiary co-owned together with the City of Stockholm,
has decided to invest in a new biofuelled combined heat and power (CHP) plant
in Värtan, Stockholm. The value of the investment is approximately EUR 500
million and it is included in Fortum's current capital expenditure guidance.
The new plant will replace some of the existing heat production with the less
expensive biofuel alternative as well as increase Fortum Värme's total
electricity production by approximately one third. The construction of the
plant will start immediately and it is planned to be commissioned in 2016.
Fortum Värme supplies Stockholm with heat and electricity. Annually Värme
currently supplies approximately 8,300 gigawatt-hours (GWh) heat, 400 GWh
district cooling and 1,500 GWh electricity. The new CHP plant will have a
production capacity of 280 megawatts (MW) heat and 130 MW electricity. The
annual production of the plant is estimated to be approximately 1,700 GWh heat
and 750 GWh electricity. The heat production equals the annual heat consumption
of about 190,000 middle-sized Swedish households.
The new CHP plant will be connected to Stockholm's Southern-central district
heating network. The advanced boiler technique will allow Fortum to use a full
range of solid biofuels and reduce the use of fossil fuels significantly. The
new plant will use forest biomass as fuel. The use of bioenergy at Värtan will
increase to as high as 70% from today’s 45%. The investment meets Fortum's
profitability and strategic criteria well, as it will enable the company to use
cheaper and more sustainable fuels.
"District heating has a strong position in Stockholm. With the new investment,
we will strenghten the energy production of the area. The investment is also in
line with Fortum's strategy, where CHP-production plays a central role. CHP
technology improves resource efficiency since it enables as much as 90% of the
energy content of the fuel to be utilised. The direct and indirect
environmental benefits of the new biofuel-based plant will be significant. The
global CO2 emissions will decrease by 650,000 tons annually", says Anders
Egelrud, Managing Director of Fortum Värme - Fortum's heat business in Sweden.
Fortum's goal is to achieve climate neutral production of district heating in
Stockholm. In addition to Värtan's new plant, Fortum is currently constructing
a new waste-fired unit at the Brista CHP-plant in northern Stockholm, Sweden.
The new Brista unit is estimated to be commissioned in 2013.
Senior Vice President, Corporate Communications
Per Langer, Executive Vice President, Heat Division, Fortum, tel. +46 8 6718383
Anders Egelrud, Managing Director, AB Fortum Värme, tel. +46 8 671 7360
Sophie Jolly, Vice President, Investor Relations at Fortum, tel. +358 10 45
NASDAQ OMX Helsinki
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 2011, Fortum’s sales
totalled EUR 6.2 billion and comparable operating profit was EUR 1.8 billion.
We employ approximately 10,800 people. Fortum’s shares are quoted on NASDAQ OMX
Further information: www.fortum.com