Fortum’s Russia division will discontinue the use of coal by the end of 2022
In July 2021, Fortum signed an agreement to sell its Argayash coal-fired combined heat and power plant (CHP) to AO JSC Rusatom Smart Utilities (JSC RSU). The sale, together with the transition to gas at the Chelyabinsk CHP-2, will allow the Russia division to discontinue its use of coal by the end of 2022 and reduce annual CO2 emissions by approximately 2 million tonnes.
Gas imports to Europe
Uniper is a significant importer of natural gas to Central Europe, with long-term gas contracts totalling approx. 370 TWh/a. About half of this amount is sourced from Russia. Uniper also sources pipeline gas from Norway, the Netherlands and Azerbaijan. In addition to pipeline gas, Uniper sources LNG from Qatar, the USA and other countries.
Uniper is one of the European financing partners of Nord Stream 2. On 7 March 2022, Uniper announced that it has decided to write down its full outstanding receivables related to the Swiss-registered company Nord Stream 2 AG, which is the project company for the Nord Stream 2 project. The impairment will be recorded in Fortum’s first quarter 2022 results in other financial items - net, but will be adjusted and will not affect the comparable net profit. Read more from Uniper's and Fortum's releases:
Uniper's release 7 March 2022: Update on Uniper’s Russian activities and way forward
Fortum Investor News 7 March 2022: Fortum subsidiary Uniper writes down its receivable in Nord Stream 2 and gives further details on its Russian businesses
Fuel purchases from Russia (updated on 12 May 2022)
Due to the war in Ukraine, we are looking for alternatives to fuel sourced from Russia.
In Finland, we do not buy coal, pellets or biomass from Russia for our power plants in Espoo and Meri-Pori.
For our Loviisa nuclear power plant in Finland, we currently procure fuel from the Russian fuel company TVEL. The current contract is valid until the end of our current operating licenses, i.e. until 2027 and 2030. The power plant has plenty of fuel in storage, even for a couple of years. On 3 March 2022, we announced the decision to apply for new operating licences for the Loviisa power plant until 2050. A new tendering process for nuclear fuel will be initiated simultaneously.
In Germany, Uniper has announced that it will not enter into new long-term supply contracts for natural gas with Russia. Uniper is increasing LNG imports to Europe and has re-started the LNG terminal project in Wilhelmshaven. Uniper is also looking for alternatives to Russian coal as imports of Russian coal will be stopped in line with the EU and UK sanctions and embargos.