PRESS RELEASE 3 June 2013
Fortum will assess the future alternatives for its Inkoo coal-fired power plant
located on the south coast of Finland. The alternatives assessed include the
partial closure of the power plant or even discontinuing the entire production
operations, among others. Consequently, Fortum will start employee negotiations
affecting all Inkoo power plant personnel. The negotiations will begin on 12
June 2013 and will last at least six weeks. There are a total of 90 employees
at the power plant.
The Inkoo power plant’s profitability has been weak. The demand for coal
condensing power in the Nordic electricity market has decreased as a result of
the economic recession and the drop in the wholesale price for electricity. The
requirements of the EU Industrial Emissions Directive (IED) will further burden
the profitability of the Inkoo power plant.
"The profitability of our Inkoo power plant has remained poor. The electricity
market has developed in such a way that it will most likely not be possible to
profitably operate a 1970s-era condensing power plant like Inkoo in the
future," says Matti Ruotsala, Executive Vice President, Power Division, Fortum.
Commissioned in 1974-1978, the Inkoo power plant has operated in recent decades
as a reserve power plant and has generated electricity for the Nordic market
mainly during periods of peak consumption. The power plant consists of four
250-megawatt units, some of which have been off-line for long periods of time
in extended start-up readiness.
Inkoo power plant’s third unit has been in the Energy Market Authority’s
capacity reserve since October 2011. The agreement will end at the end of June
2013. Inkoo power plant was not selected for a continuation period. On 27 March
2013, Fortum notified the Nordic power exchange, Nord Pool Spot, that it will
close the power plant’s unit four, which had not been in operation at all since
2008. After the notification, the power plant’s total capacity decreased to 750
Matti Ruotsala, Executive Vice President, Power Division, tel. +358 40 048 7052
Mari Kalmari, Vice President, Corporate Communications, tel. +358 40 520 1709
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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
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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
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