Fortum's Markus Rauramo in Brussels: Competitive heat markets help in reaching EU climate and energy targets

PRESS RELEASE 27 FEBRUARY 2015

"The heat sector can have a major impact on reaching the EU climate and energy
targets for 2030, improving energy efficiency and ensuring security of supply.
There is an urgent need for an EU-level heat strategy to promote competition
between different heating methods," said Markus Rauramo, Executive Vice
President for Fortum's Heat, Electricity Sales and Solutions Division, in his
remarks at the European Heating and Cooling conference in Brussels.

The vital contribution of efficient and sustainable district heating networks
that are supplied by effective combined heat and power (CHP) should be further
acknowledged and more co-ordinated in the EU's energy policy. In order to
promote competition between different heating methods, the Commission should
speak for wider liberalisation of heat markets, equal competition rules and
removal of barriers in order to activate consumers and to enable them to have
an influence on their heating solution and related consumption. While
developing the heat market of the future, we need to assess the potential for
district heating and CHP development in different member states as well as the
potential for utilisation of existing waste heat for district heating supply.
It is also of crucial importance to enable the energy recovery from waste heat;
this would bring total efficiency to the recycling loop.

"Today, more than 40% of the EU's energy consumption is used for space heating,
so any actions that help to improve the efficiency of the sector contribute
positively towards the EU's security of supply and the competitiveness of
district heating. Concrete actions to promote the use of alternative local
fuels, such as waste, biomass and other renewable fuels, in the heating sector
can thus help to reduce European dependency on imported fuels. Fortum has
invested substantially in bio- and waste-fuelled CHP and heat pumps across the
Baltic Rim countries. We continue to screen for further such opportunities,"
Rauramo noted.

Future heat markets should evolve towards a solution to reach EU environmental
targets. District heating, in particular, is a safe, sustainable and reliable
solution for providing space heating. In our opinion, resource efficient
district heating production fuelled with local resources utilising waste heat
should be further promoted.

Fortum Corporation
Corporate Communications

Further information:
Harri-Pekka Korhonen, Head of Heat Policies and Regulation, tel. +358 50 452
9321

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
2014, Fortum’s sales totalled EUR 4.75 billion and comparable operating profit
was EUR 1.35 billion. We employ approximately 8,800 people. Fortum’s shares are
traded on the Nasdaq Helsinki. www.fortum.com