Press release

Fortum and Seabased Industry receive positive response from Swedish Energy Agency regarding investment grant for wave power project

11 February 2010, 16:35 EET

Fortum Corporation Press release 11 February 2010

Fortum and Seabased Industry receive positive response from Swedish Energy      
Agency regarding investment grant for wave power project                        

Energimyndigheten, the Swedish Energy Agency, announced approval of an          
investment grant today for the planned full-scale wave power project near Smögen
in the municipality of Sotenäs in Sweden. The grant entails that the agency will
contribute SEK 139 million (approx. EUR 14 million) of the total investment of  
approximately EUR 25 million. The state-funded grant is welcome in further      
developing the technology for commercialisation. With the demonstration project,
Fortum can develop wave power into a significant source of energy in Europe.    

In May 2009, Seabased Industry in collaboration with Fortum, submitted an       
application to Energimyndigheten, the Swedish Energy Agency, for an investment  
grant to participate in the programme for renewable energy.                     

"We are happy with the Swedish Energy Agency's positive response. The future    
looks promising if the technology can be developed to become reliable and       
competitive. Planning continues and we are now awaiting permits from the Swedish
Environmental Court and the EU. We have started planning for electrical grid    
connections and concession applications, and hope for a speedy permit process", 
says Göran Hult, senior advisor, Fortum Power.                                  

About the project                                                               

With the technology, which is not yet commercially mature, the planned          
wave power plant is to be the world's largest full-scale installation of its    
type, with 420 interconnected units. The output will be approximately 10 MW.    

The environmental impact assessment has been submitted, along with permit       
applications. A review by the EU will determine whether Fortum will make use of 
the awarded investment grant. The planned investment requires an investment     
decision by Fortum.                                                             

The Swedish Energy Agency is tasked with supporting and stimulating development 
of commercially viable, renewable energy production through investment grants.  
The agency has previously made decisions on four projects. Fortum and Seabased  
Industry's project is the fifth and final project of this programme.            

Seabased Industry AB is an Uppsala-based company that develops new technology   
for extraction of energy from sea waves. The company is closely associated with 
the research on wave power conducted at Uppsala University.                     

Fortum Corporation                                                              
Corporate Communications                                                        

For more information, contact:                                                  
Göran Hult, Senior Advisor, Fortum Power Division, +46 (0)70 344 54 98          
Annika Bremer, Communications Manager, Power Division, +46 (0)76 814 40 82