Nordic energy company Fortum looking for growth in India

​Press release Tuesday 18 September, 2012.


New Delhi. The Finland based energy company Fortum, a leading electricity and heat producer in northern Europe and Russia, today officially announced the opening of its Indian office in New Delhi. In the near future, the main focus for Fortum will be to assess opportunities to invest in CHP (combined heat and power) plants to provide power and steam for industrial clusters. Fortum is looking to possibly make investments in the combined heat and power domain in India and is currently in talks with stakeholders in several states. Fortum also announced that it is exploring a possible future role in solar power production in India.


Commenting on Fortum´s plans in India, Tapio Kuula, President and CEO, Fortum, said, “We are here today to officially open our very first Fortum India office in New Delhi. Our aim in India is to look into investment opportunities contributing to the development of India’s energy infrastructure. Based on our long track record in sustainable power and heat production and our energy market competence, I believe that Fortum has a lot to offer to the rapidly developing Indian energy market. Along with population growth, the rising standard of living is increasing consumption and energy needs. At the same time, making the best use of natural resources and finding ways to mitigate the increasing emissions from power generation are also needed in India. This means that energy has to be produced and used more efficiently and in a smarter way in India in the future. If and when we find opportunities that are in line with our financial and other targets, Fortum could initially be looking to invest up to 200 – 250 million euros in industrial CHP in India.” Tapio Kuula also concluded on Fortum´s aspiration regarding solar power production, ”In Fortum, we are currently assessing generally our future role in solar power production. India is one of the globally most interesting countries in solar power generation, both with regards to its natural location but also due to its ambitious plans for solar power. As we now have a base here in India, it is quite natural for us to explore possible growth in solar as well.”


Fortum has appointed  Matti Kaarnakari as Managing Director for Fortum India Pvt. Ltd.


“We are impressed with India's growth and see potentially very interesting business opportunities for us as a valuable partner in India. We believe that our experience in resource efficiency and sustainable power generation will be appreciated,” says Matti Kaarnakari, Managing Director for Fortum India Pvt. Ltd. “We are now focusing on assessing growth opportunities in providing power and steam for industrial clusters and are in talks with various stakeholders. Our concept can bring several benefits for industrial customers, e.g. in terms of security of supply for steam and power but also freeing customers´ resources, whether investments, people or land to be used in their core industrial processes. Our CHP competence allows for very high primary fuel efficiency and also the use of a wide range of fuels. The level of efficiency we reach in a CHP plant can be close to 90% while the efficiency with separate power and steam production is around 35% and 70% respectively.”


 “We have very good experience in using multiple fuels in our CHP production, and we aim to bring this competence to India also. Our ambition is to use, what we call local fuels, that is various types of biomass or waste, whenever possible. In India this could mean for example coconut shell, cashew shell, rice or coffee husk. We always strive to work closely with local communities, and using local fuels is one important way to bring benefits locally as well.” Mr Kaarnakari continued.


About Fortum


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 will provide additional growth opportunities. In 2011, Fortum’s sales

totalled EUR 6.2 billion and comparable operating profit was EUR 1.8 billion.

We employ approximately 10,800 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki.