Fortum invests in a new power plant in Estonia

Fortum Heat
Press release
27.6.2008, 14.00


Fortum builds a new combined heat and power plant in the city of Pärnu in
Estonia. The total value of the investment is around EUR 80 million. The power
plant is planned to be operational by the end of 2010.

The production capacity of the power plant will be 45 megawatts (MW) heat and 23
MW electricity. The new power plant will be biomass and peat fuelled, biomass
will be used as much as is available in the local market and remaining fuel
need will be covered with peat.

The plant will replace aging capacity and natural gas based production. Compared
to separate generation, switching to combined heat and power generation will
considerably increase energy efficiency. Thanks to the investment CO2 emissions
will reduce more than 60%.

" At the moment, we have an on-going CHP plant project in the city of Tartu and
this new investment in Pärnu is an important step in delivering further on our
growth strategy in the market. Fortum is one of the leading companies in
combined heat and power production, and we want to utilise this expertise in all
Baltic countries.", says Mr. Jaakko Vähä-Piikkiö, President of Fortum Heat in
the Baltic countries.

”At the time we acquired heating operations in Pärnu in 2006, we saw
opportunities in investing in the further development of the energy generation
and distribution in the city. We are pleased to make this investment, which
will not only benefit the environment but also the consumers", says Jaakko

Fortum has heat production and distribution in the Nordic countries, in the
Baltic countries, in Poland and in Russia. The total heat sales in the Baltic
countries was around 1.2 TWh in 2007 and the number of personnel is 540.

Fortum Heat

Further information:
Jaakko Vähä-Piikkiö, Vice President, Fortum Heat, tel. +358 50 453 2009
Anu Salonsaari-Posti, Vice President, Communications, Fortum Heat, tel +358 50
453 4262