Press release

Fortum and the Chelyabinsk Region Administration initiate large-scale cooperation to improve energy efficiency

29 January 2010, 9:06 EET

Fortum Corporation
Press release
29 January 2010

Fortum and the Chelyabinsk Region Administration initiate large-scale cooperation to improve energy efficiency Fortum's Russian subsidiary OAO Fortum and the Chelyabinsk Region Administration have agreed on extensive cooperation in the area of energy efficiency. According to the Memorandum of Intentions signed in the course of the Russian Energy Minister Sergey Shmatko's visit to Finland on 28 January, the parties intend to implement a number of energy efficiency measures during 2010-2012 in the Chelyabinsk region. The measures aim at reducing environmental impacts and promoting efficient use of resources. The largest operation in the programme is the automation and upgrade of the Chelyabinsk district heating system, which will reduce energy losses in the area by over 30% as well as significantly decrease fuel consumption and emissions. A project this size is unique in Russia and will be partly funded by raising the district heating tariffs controlled by the region's administration. Once completed, consumers will be provided with uninterrupted and more affordable supply of district heat. “During 2009-2012, we will invest RUB 3 billion (approximately EUR 70 million) in improving energy efficiency. An additional RUB 1.5 billion (approximately EUR 35 million) for the implementation of the programme will be collected from district heating tariffs. We greatly appreciate the support of Chelyabinsk Administration and Regional Government who directly participated in the project development and kick off,” says Alexander Chuvaev, OAO Fortum General Director. ОАО Fortum is also planning to implement a number of technical improvements at the power plants located in the Chelyabinsk region in order to increase the efficiency of heat and electricity production. The company has also launched a sustainability programme aiming to reduce environmental impacts both around the power plants and in the region as a whole. According to Minister of Industry of Chelyabinsk region Vladimir Elistratov, the regional authorities intend to support the development and implementation of energy saving and energy efficiency improvement programmes. “For its part, the Government of Chelyabinsk region will take all actions required to further encourage such initiatives,” he says. Fortum Corporation Corporate Communications Pictures from the visit to the Suomenoja power plant and the occasion where Alexander Chuvaev and Vladimir Elistratov signed the memorandum. http://media.digtator.fi/digtator/tmp/653f1d4367172bd07baba94af5b26200/preview.h tml The link is valid until 28.02.2010. Additional information: Marina Balabanova, Vice President, Government Relations and Communications, Fortum Russia Division, Tel. +79 226 999 721 OAO Fortum is a territorial generating company operating in the Urals and West Siberia region. The total installed capacity is 3,000 MW power and 15,800 MW heat with an annual production of 18 TWh power and 27 TWh heat. The company has an extensive investment plan to further increase its power production capacity by 2,300 MW. The number of employees is about 5,000.