Stock exchange release

Fortum submits application for the construction of a new nuclear power plant unit in Loviisa

05 February 2009, 8:05 EET

Fortum Corporation
Stock Exchange Release
5 February 2009, 08.05 EET

Fortum submits application for the construction of a new nuclear power plant unit in Loviisa - A press conference will be held today at 10.30 (EET) at Fortum's head office at Keilaniementie 1, Espoo. Fortum has today, 5 February 2009, submitted to the Government of Finland an application for a decision-in-principle concerning the construction of a new nuclear power plant unit on the island of Hästholmen in Loviisa. Fortum already has two nuclear power plant units on the island. According to plan, the new unit will be operational in 2020. Its designed service life is at least 60 years. The application presents five different plant alternatives, all of which will fulfil stringent Finnish safety standards once completed. Fortum's project is in line with the overall good of society The Loviisa 3 project supports the Finnish Government's climate and energy strategy presented to the Parliament in November 2008. Construction of the nuclear power plant unit reduces dependency on energy imports, replaces retiring electricity production in the coming decades and ensures carbon dioxide-free and stable base-load electricity production at a predictable cost in Finland. Loviisa 3 will be designed to allow for combined heat and power production. The location in the vicinity of the Helsinki metropolitan area offers possibilities for extensive utilisation of district heat. In addition to nuclear power, Fortum is committed to promoting renewable energy production, such as hydro and wind power and the utilisation of biomass-fuels, and energy conservation. With these methods, it is possible to achieve virtually carbon dioxide-free electricity production. Already today over 90% of Fortum's power generation in the EU is carbon dioxide-free. Fortum generates power to the market where it is available to all who need electricity. Fortum is a strong Finnish nuclear power expert Fortum has long experience in nuclear power plant design, construction and operation as well as a solid track-record of expertise. The company has over 600 professionals working in its current nuclear power functions. The Loviisa nuclear power plant has been in operation for over 30 years, and is in terms of safety and availability, one of the best in the world. The Loviisa 3 project is important for maintaining and increasing Finnish nuclear power know-how. Loviisa is an excellent location for the new nuclear power plant unit A thorough environmental impact assessment has been completed for Loviisa 3. The assessment indicates that a new nuclear power plant unit can be constructed on the island of Hästholmen in Loviisa. The area owned by Fortum is already zoned for a new nuclear power plant unit. The construction of the unit will not cause any changes to land ownership or protective zones, nor does it require any compulsory acquisitions. The employment impact of the Loviisa 3 investment is about 21,000 man-years. The project has a significant impact on employment and the economy, particularly in Itä-Uusimaa and Kymenlaakso regions. Fortum has a ready solution for final disposal of nuclear waste The new nuclear power plant unit's low- and intermediate-level radioactive waste will be disposed of on Hästholmen island by utilising existing solutions and by expanding the repository on the island. Spent fuel will be placed in a final repository at Olkiluoto in Eurajoki. Posiva Oy, which is jointly owned by Fortum and Teollisuuden Voima Oyj (TVO), will handle the practical implementation of the final disposal. Posiva has filed an environmental impact assessment on expanding the final repository with Loviisa 3's waste. The repository at Olkiluoto allows for the final disposal of the spent fuel of Fortum and TVO's existing operational plants and their new units that are now being planned. Fortum has the resources to implement the new nuclear power plant unit The total costs of the new, 1,000-1,800-megawatt nuclear power plant unit are EUR 4-6 billion, depending on the size and type of plant selected. The estimate is based on Fortum's previous experience and the knowledge it has gained as a nuclear power producer. Fortum's know-how and financial resources enable the implementation of the Loviisa 3 project in accordance with the planned schedule and without public funding. Fortum Corporation Maria Romantschuk Senior Vice President, Corporate Communications Additional information: Mikael Lilius, President and CEO, Fortum Corporation, tel. +358 10 452 9100 Tapio Kuula, Senior Vice President, Fortum Corporation, tel. +358 10 452 4112 Matti Ruotsala, President, Fortum Generation, tel. +358 40 048 7052 Additional information online: www.loviisa3.fi Distribution: NASDAQ OMX Helsinki Key media www.fortum.com Invitation to press conference Fortum will hold a press conference (in Finnish) about the Loviisa 3 project today, 5 February 2009, at 10.30 (EET) at its head office at Keilaniementie 1, Espoo. The press conference will be webcasted live on Fortum's web site. A press conference about Fortum's 2008 financial results will immediately follow. The webcast can be viewed on Fortum's web site at www.fortum.com/investors.