Fortum has agreed to sell its shares in Fortum Heat Naantali Oy (owning Naantali power plant) to Turun Seudun Maakaasu ja Energiantuotanto Oy (TSME), a regional energy producer in Turku. A letter of intent on restructuring the Naantali power plant's ownership was signed in December 2010. The transaction will take effect on 31 December 2012. A sales gain of approximately EUR 19 million from the transaction will be booked in Fortum Heat Division's 2012 fourth quarter operating profit. The cash flow impact is approximately EUR 50 million.
Divestment of the Naantali power plant is part of the consolidation of the Turku region’s energy production. TSME has already used the production capacity of the Naantali power plant according to an agreement. Fortum's shareholding in TSME is 49.5%, Turku Energia's 39.5%, Raisio municipality's 5%, Kaarina municipality's 3% and Naantali municipality's 3%. The district heat produced by the power plant is sold from TSME to Turku Energia, the steam to Fortum and the electricity to TSME’s shareholders. Naantali power plant employs some 130 persons, which will remain in Fortum’s service as Fortum will supply operation and maintenance service to TSME.
“Selling the Naantali power plant to Turun Seudun Maakaasu ja Energiantuotanto Oy completes the rearrangement of region’s base production facilities under one company and improves the efficiency of regional energy production. The arrangement supports the development of energy production by reducing emissions and improving energy efficiency,” says Jouni Haikarainen, Vice President at Fortum's Heat Division.
TSME will continue preparations for a new base production solution, which will be decided after the completion of the preliminary planning in 2013. Alternatives include building a gasification plant for biofuels in Naantali or a completely new, 450-megawatt multifuel power plant. The goal is to significantly increase the use of biofuels in the Turku region, which will reduce carbon-dioxide emissions from energy production. An environmental impact assessment process for the project was completed in 2011.
Energy production in the Turku region is largely based on the heat and electricity production of Naantali power plant. The power plant produces annually about 1,000 gigawatt-hours (GWh) of electricity for the Nordic market and about 600 GWh of steam for industrial customers. The Naantali power plant also produces about 1,500 GWh of district heat for approximately 180,000 customers in Turun region. The plant has been in operation for 50 years.
Jouni Haikarainen, Vice President, Fortum, Heat Division, Finland, tel. +358 40 709 5690
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. We employ approximately 10,800 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki.
Further information: www.fortum.com