Reducing greenhouse gas emissions from our own energy production plants is our primary way of mitigating climate change. Emissions reductions are realised through e.g. the use of low-emissions or emissions-free energy sources and by improving energy efficiency.
The CO2-free electricity is produced at hydropower plants, nuclear power plants, wind-power plants and at bioenergy-based combined heat and power (CHP) plants. The share of our CO2-free electricity production in the EU area is 85%. In Russia our electricity production is based entirely on fossil fuels.
The most important emissions reduction measures include fuel switches, hydropower refurbishments, nuclear power upgrades and expansions to district heating. The annual CO2 reduction achieved with these measures from 1990–2009 was 3.6-4.9 million tonnes.
Over the past ten years Fortum has invested around EUR 7 billion in carbon-free production capacity, mostly hydropower. Our ongoing investment programme in Europe will increase our emissions-free nuclear and hydro power production capacity by 800 MW. The investment programme includes e.g. hydro and nuclear power plant upgrades and output increases. From the construction of new CHP plants the increases in capacity will be 225 MW heat and 86 MW electricity. The major part of fuels used in CHP-plants are biofuels and waste-based fuels, but also coal and peat can be used.
Three new production units were commissioned in Russia in 2011. The new units in Tyumen, Tobolsk and at Chelyabinsk CHP-3 provide clear environmental benefits. These new units represent the best available technology improving the efficiency of the plants and decreasing CO2 emissions. For example, the energy efficiency of the new unit in Tyumen is over 85% and the CO2 emissions in the area will reduce by 400 000 tonnes annually. In Chelyabinsk the new unit’s fuel consumption is 20% lower than that of existing gas-fired units, and its efficiency increases to 77%. The investments also support the wellbeing of the local societies by employing workforce.
However, our investment programme in Russia by 2015 (around 2,400 MW by 2015) will increase CO2 emissions because the new power production is based on natural gas and coal.
Cutting emissions by improving energy efficiency
Energy efficiency is a key factor in energy production – from both an economic and environmental perspective. The aim in combustion-based production is to utilise the fuel as efficiently as possible.
CHP production is energy efficient and achieves an overall efficiency of up to 90%. CHP accounted for 29% of Fortum’s total electricity production in 2011 and 71% of heat production.
In November 2011, Fortum commenced operations of stage one of an ambitious district heating project, in Chelyabinsk region, Russia. The project, called Chelyabinsk Heating Ring, will result in automation and upgrade of the Chelyabinsk district heating system, which will reduce energy losses in the area by over 30% as well as significantly decrease fuel consumption and emissions. In addition to this project, Fortum intends to implement several technological improvements to increase the efficiency of heat and electricity production at its plants in the Chelyabinsk area.