Press release

Fortum invests in a new power plant in Estonia

27 June 2008, 14:00 EEST

Fortum Heat Press release 27.6.2008, 14.00

FORTUM INVESTS IN A NEW POWER PLANT IN ESTONIA                                  

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