Press release

Fortum plans to increase use of renewable fuels in Stockholm

25 November 2009, 11:00 EET

Fortum Corporation Press release 25 November 2009

Fortum plans to increase use of renewable fuels in Stockholm                    

Fortum plans to significantly reduce the carbon dioxide emissions of its power  
and heat production over the next decade. The plan in Stockholm, Sweden,        
includes, among others, new bio fuel -fired production and replacing fossil     
fuels with climate neutral fuels in existing production.                        

Already today 87% district heat in Stockholm is produced with renewable or      
waste-derived fuels. Heat is produced both in combined heat and power (CHP)     
plants as well as heat-only facilities. In Fortum's largest production unit,    
Värtan CHP plant, the share of renewable energy - thermal (seawater), bio oil   
and olive pits - is nearly 45%. The remaining fuel need is covered with coal and
electricity. The plan is to increase the share of renewable energy in Värtan's  
existing units to 70% by 2015.                                                  

Fortum's plan to reduce CO2 emissions calls for an increase in CHP production.  
This would reduce the use of electricity-driven heat pumps in district heat     
production and increase the amount of renewable electricity on the Nordic power 
market. Therefore, Fortum is investigating the possibility to invest in several 
new production units. These include, among others, a new waste-fired unit in    
Brista CHP that could be commissioned in 2013 and a new bio fuel -fired unit in 
Värtan CHP that could be commissioned in 2016. Furthermore, Fortum is already   
looking into a completely new CHP plant that could be commissioned 2020.        

"CHP production is an environmentally sound solution regardless of the fuel used
due to its almost 90% energy efficiency. However, we want to further reduce our 
environmental impact and plan to increase the share of renewables in our        
production. We estimate that the share of fossil fuels used in heat production  
in Stockholm could be reduced down to 5% in 2020 by replacing coal with bio     
fuels in Värtan and by adding new units to the heating system," says Per Langer,
Executive Vice President responsible for Fortum's Swedish operations.           

A preliminary estimate of the plan's value is today about EUR 1 billion over 11 
years. Investments decisions for each part of the plan will be made separately  
and will be based on Fortum's normal investment criteria. Fortum expects its    
annual capital expenditure in the next 4-5 years to be within a range of EUR    
0.8-1.2 billion, as earlier announced.                                          

Fortum Corporation                                                              
Corporate Communications                                                        

Further information:                                                            
Jens Bjöörn, Head of Communications, Fortum Värme, 
tel: +46 70 298 41 25                         
Pauliina Vuosio, Vice President, Financial Communications, Fortum Corporation,  
tel. +358 50 453 2383