Press release

Fortum and DCNS to develop wave power in France

10 October 2011, 18:23 EEST

PRESS RELEASE 10 October 2011

Fortum and DCNS have today signed a Letter of Intent on cooperation in the field of wave power research and development in France. A joint feasibility study for a wave power demonstration project located in France is planned to be starting by the end of 2011.

The project is in line with Fortum’s and DCNS’s ambitions. Fortum’s strategy is based on sustainable solutions that fulfil the needs for low emissions, resource-efficiency and energy security. DCNS aims to play a leading role in the emerging field of marine renewable energy, which is an integral part of the Group’s strategy and offers significant opportunities for long-term growth.

“The potential of wave power justifies the research investments in wave power plants. We firmly believe that wave power will play a significant part in the next generation renewable energy system. Fortum has seized this excellent opportunity to test the technology in cooperation with DCNS as it will allow both companies to utilise their complementary expertise in the area”, says Matti Ruotsala, Executive Vice President of Fortum, when signing the Letter of Intent with DCNS today.  “Working together on the wave power demonstration project in France over the coming months will enable us to make considerable R&D progress for the future of this energy source.”

"We are delighted to partner with a leading player, which contributes to the emergence of wave energy that undoubtedly plays an important role in the market for marine renewable energies. DCNS has all the skills to provide the appropriate industrial answers to Fortum”, said Bernard Planchais, Executive Vice President and Chief Operating Officer of DCNS. “DCNS is ready and eager to play a leading role in this market by working with Fortum on projects that will serve as precursors to industrial scale-up.”

Fortum has been actively involved in wave energy development since 2007. The company is already participating in two wave power development projects aiming  to build demonstration plants in Sweden and Portugal. Offshore wave power technology is being researched in Sweden and nearshore wave technology in Portugal in collaboration with the Finnish company AW-Energy. WaveRoller, a technology developed by AW-Energy, is now being looked into as one opportunity to be used in the French project developed by Fortum and DCNS.

CO2-free energy production is Fortum’s core competence: in 2010, 86 % of Fortum’s power production in Europe was CO2 -free.  The company’s ambition is to contribute to building a low-carbon society also in France. Therefore Fortum will participate in the tendering processes for hydropower concession renewals in France as announced in the end of last year.

DCNS is the unique industrial company in the world that is exploring the entire spectrum of marine renewable energy technologies from floating offshore wind turbines and marine current turbines to ocean thermal energy conversion (OTEC) and wave converters. Building on its technologies, industrial means and expertise, DCNS covers the complete cycle of these new power production systems: conception, construction and maintenance. Last January, DCNS acquired an 8% holding in OpenHydro, a world leader in tidal renewable energy, in order to enable the companies to combine their marine engineering strengths in the tidal energy market. Moreover, DCNS plans to develop and build a 10 MW offshore ocean thermal energy pilot plant in Martinique and will deliver an OTEC land based prototype to La Réunion.

Fortum Corporation

Further information:

Fortum, Power Division
Risto Penttinen, Vice President, Strategic Ventures, tel. + 358 40 746 6589
Mikko Iso-Tryykäri, Project Manager, Strategic Ventures, tel. + 358 50 453 2650

Virginie Lemière, Press Officer, tel. +33 (0) 1 40 59 53 57, virginie [dot] lemiere [at] dcnsgroup [dot] com

Images of wave power: > Mediaroom > Photos and logos > Fortum Media Bank > Renewable energy

About Fortum
Fortum's purpose is to create energy that improves life for present and future
generations. We provide sustainable solutions that fulfill the needs for low
emissions, resource efficiency and energy security, and deliver excellent value
to our shareholders. Our activities cover the generation, distribution and sale
of electricity and heat as well as related expert services.

Fortum's operations focus on the Nordic countries, Russia and Baltic Rim area.
In the future, the integrating European and fast-growing Asian energy markets
provide additional growth opportunities. In 2010, Fortum's sales totalled EUR
6.3 billion and comparable operating profit was EUR 1.8 billion. We employ
approximately 10,500 people. Fortum's shares are quoted on NASDAQ OMX Helsinki.
Further information:

About DCNS
DCNS is a world leader in naval defence and an innovative player in energy. The Group's success as an advanced technology company with global reach is built on meeting customer needs by deploying exceptional know-how and unique industrial resources. DCNS designs, builds and supports surface combatants, submarines and mission-critical systems and equipment incorporating the most advanced technologies. It also proposes services for naval shipyards and bases. Last but not least, DCNS offers a range of solutions in marine renewable energy. DCNS is committed to sustainable development and was one of the first defence contractors to achieve Group-wide certification to ISO 14001. In recognition of the success achieved by its Filières du Talent knowledge sharing programme, DCNS was awarded the Trophée National de l'Entreprise Citoyenne (national award for corporate citizenship) under the patronage of the French Senate. The Group employs 12,500 people and generates annual revenues of around €2.5 billion.