Fortum to sell hydropower to Koskienergia - Divestments of small hydro power plants in Finland completed
30 March 2012, 14:00 EEST
PRESS RELEASE 30 MARCH 2012
Fortum will sell 14 small hydropower plants in Finland to Koskienergia Oy. The ownership of the plants will be transferred to the buyer as of 30 March 2012. This transaction and the previous divestment of a 60% share in Killin Voima Oy, announced on 13 February 2012, completes Fortum's divestments of small hydropower plants in Finland. Capital gain from these transactions will be approximately EUR 45 million. It will be booked in the Power Division's first-quarter 2012 results.
”We are concentrating our operations to our power plants on the Vuoksi and Oulujoki water systems in Finland and to our holding in Kemijoki Oy. This will enable us to further improve the efficiency of these power plants,” Risto Andsten, Vice President, Renewal Energy, Fortum, explains the reason behind the transaction.
About one-third of Fortum’s annual electricity production is based on emissions-free hydropower. Fortum’s hydropower capacity in the Nordic countries is nearly 4,700 megawatts. After the transaction now announced, Fortum will have about 1500 megawatts of hydropower capacity in Finland through its own hydropower plants and through its shareholding in Kemijoki Oy.
The total capacity of the power plants to be sold to Koskienergia Oy is 22 megawatts and the annual production about 85 GWh.
The 14 small hydropower plants to be sold are located in Finland in Mustionjoki, Paimionjoki, Kyrönjoki, Loimijoki and Koillismaa.
Koskienergia Oy is focussed on small hydropower production. After the transaction, it will own 30 small hydropower plants.
The transaction has no effect on personnel.
Risto Andsten, Vice President, Renewable Energy, Fortum, tel. +358 (0)50 453 3988
Fortum’s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions that fulfil the needs for low emissions, resource-efficiency and energy security, and deliver excellent value to our shareholders. Our activities cover the generation, distribution and sales of electricity and heat as well as related expert services.
Fortum’s operations focus on the Nordic countries, Russia, Poland and the Baltics. In the future, the integrating European and fast-growing Asian energy markets provide additional growth opportunities. In 2011, Fortum’s sales totalled EUR 6.2 billion and comparable operating profit was EUR 1.8 billion. The Group employs approximately 10,800 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki.
Additional information: www.fortum.com
Koskienergia Oy, a company focussed on hydropower production, is jointly owned by three local energy companies: Etelä-Savon Energia Oy, Ääneseudun Energia Oy and Kuoreveden Sähkö Oy. Koskienergia Oy previously owned and operated 16 hydropower plants around Finland. The current transaction will double the company’s electricity production capacity. Koskienergia continuously develops and upgrades plants, which brings investments and jobs to the hydropower communities.
Additional information: www.koskienergia.fi