Fortum has eight thermal power plants in Russia, the majority of them are natural gas-fired combined heat and power (CHP) plants. The power plants are located in the Tyumen and Khanty-Mansiysk areas of western Siberia and in the Chelyabinsk area of the Urals.
Fortum’s capacity is one of the most modern and advanced in Russia. In 2021, Russia Division for the third year in the row topped the ranking of the most efficient generating companies, according to Market Council, a nonprofit partnership that supervises wholesale electricity market in Russia. According to rating methodology, Fortum was recognized for consistency of capacity supply obligations and high efficiency of its generation fleet.
The electricity production capacity was 4,928 MW and heat production capacity was 8,437 MW in 2020. Additionally, Fortum has over 29.5 per cent holding in TGC-1, which owns and operates thermal and hydropower in north-west Russia and a heat distribution network in St. Petersburg.
Uniper, Fortum’s subsidiary in which its ownership is approx. 75 per cent, also operates in Russia. Uniper’s Moscow Exchange-listed subsidiary Unipro has five power plants around the country.
Leading position for renewable energy in Russia
Fortum’s investments in Russia in recent years have focused on developing renewable energy. We are also actively engaged in the foundation of carbon-free energy market.
The 35 MW Ulyanovsk wind power plant that entered the wholesale electricity and capacity market on January 1, 2018 became the first industrial-scale wind farm in Russia.
Currently Fortum in Russia owns the largest wind and solar power portfolio of more than 2 GW, (incl ownership via joint ventures). We expect this portfolio to be commissioned by 2024.
By implementing gigawatt-scale RES projects, Fortum is supporting the country’s transition to a cleaner energy system and providing a pillar for local customers in their decarbonisation efforts by supplying them with CO2-free energy from wind power plants.
In Russia, Fortum already supplies green energy to the AB InBev and Unilever production facilities, Sberbank, Air Liquide, Shchekinoazot Chemical Company, P&G, and Leroy Merlin. Memorandums of Understanding (MoU) regarding green energy supplies are signed with natural gas supplier Novatek, one of the major steel producers in Russia Magnitogorsk Iron and Steel Works (MMK), technology company Baker Hughes, and the global energy company Shell. Bilateral agreement on green energy has been also made with Mosenergosbyt.
Our efforts increase availability of renewable energy in Russia, paving its pathway towards reduced CO2 emissions and highlighting the emerging role of wind and solar in preventing climate change.
Our 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 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.
Read more from investor news of 8 July 2021: Fortum set to end the use of coal in its Russia division by the end of 2022.