Fortum wins award for R&D in sustainable bio-oil production

PRESS RELEASE 24 September 2013

Fortum has received a special award for innovation from the Global District
Energy Climate Awards organisation. The prize was awarded to Fortum for its
investment project using fast pyrolysis technology to produce bio oil in
connection with existing district heating production and a combined heat and
power plant.

Fortum has been developing CHP-integrated fast pyrolysis technology together
with Metso Power, UPM and VTT (Technical Research Centre of Finland),and the
first commercial plant using this concept is being built in Joensuu, in eastern
Finland. The research has been part of TEKES the Finnish Funding Agency for
Technology and Innovation’s Biorefine programme.

The new bio-oil production process will be utilising the existing CHP plant
that already provides district heating for the city of Joensuu. This bio oil
can be used to replace fossil oil in the production of district heating or
industrial heat and steam. Fortum will utilise the oil in its own heat plants
in Joensuu and Espoo. That will substantially reduce carbon dioxide and sulphur
dioxide emissions in the area.

The raw materials used to produce the bio oil in Joensuu will consist of
wood-chips and industrial by-products from the local forest industry, and the
plant will initially produce around 50 000 tonnes of bio oil every year. The
pyrolysis plant in Joensuu will be taken into operation in November of this
year. Fortum has the readiness to add the bio-oil production element to
several CHP plants in Finland and other countries.

The award was received at the 3rd Global District Energy Climate Awards in New
York, USA, on the 23rd of September.

"We are very proud to receive this award. It shows that we are on the right
track in developing our combined heat and power technology. The Joensuu
pyrolysis project is one of the most exciting R&D projects we have in Fortum,
and it demonstrates that it is possible to combine profitability with
sustainability," says Jukka Heiskanen, Head of R&D at Fortum's Heat division.

Fortum Corporation
Corporate Communications

Additional information:
Jouni Haikarainen, Vice President, Fortum Heat Division, Finland, tel. +358 40
709 5690


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 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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