Fortum inaugurates the first waste-to-energy combined heat and power plant in the Baltics


Dalia Grybauskaitė, President of the Republic of Lithuania, and Sauli Niinistö,
President of the Republic of Finland, have today inaugurated Fortum's new
combined heat and power plant in the city of Klaipeda, Lithuania. The power
plant uses municipal and industrial waste as well as biomass as fuels to
provide district heating to the residents and businesses in Klaipeda and
electricity to the Lithuanian power grid. It is the first of its kind in the
Baltic countries.

"Using sorted waste as fuel in combined heat and power production is a
sustainable solution for urban areas. It offers a cost-efficient answer to
energy and waste management needs alike, and helps to significantly reduce
greenhouse gas emissions compared to depositing waste in landfills," said
Fortum’s CFO Markus Rauramo at the inauguration ceremony today.

"The Klaipeda power plant is the first of four we will inaugurate this year in
the Baltic and Nordic countries. Combined heat and power production is at the
core of our strategy, and we strongly believe in the benefits of using
sustainable, local fuels whenever possible," Mr Rauramo continued.

Fortum's new power plant replaces old natural gas-fired heat production in
Klaipeda and reduces CO2 emissions by approximately 100 000 tonnes per year.
The transfer to waste-fired combined heat and power generation also
considerably increases energy efficiency compared to heat-only production and
has a positive impact to the competitiveness of district heating as well as
waste management costs.

With an energy efficiency close to 90%, the new power plant's boiler can
incinerate 230 000 tonnes of waste and biomass annually, giving it a power
production capacity of 20 MW electricity and 50 MW heat. Furthermore, the plant
is equipped with flue-gas condensers that enable the recovery of an additional
15 MW of heat at peak demand times.

The plant will produce approximately 140 GWh of electricity and 400 GWh of heat
per year, which covers approximately 40% of Klaipeda's district heating demand.
Heat from the plant will be sold to AB Klaipėdos energija, which also holds a
5% stake in the power plant.

Plant construction started in March 2011 and took about 1.2 million hours or
750 man-years to complete. Occupational safety was a priority during the entire
project and was at a good level with only two incidents causing lost workdays.
Fortum’s investment in the new power plant totalled LTL 435 million or
approximately EUR 130 million.

Fortum Corporation
Corporate Communications

Additional information:
Jaakko Vähä-Piikkiö, Fortum Heat Division, Vice President of Baltic Region,
tel. +358 50 453 2009
Vitalijus Zuta, Director General of Fortum Heat Lietuva, tel. +37069821948

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 provide additional growth opportunities. In 2012, Fortum’s sales
totalled EUR 6.2 billion and comparable operating profit was EUR 1.7 billion.
We employ approximately 10,400 people. Fortum’s shares are quoted on NASDAQ OMX

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