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Press release

Fortum to study the future alternatives for the Inkoo power plant in Finland

03 June 2013, 13:35 EEST

PRESS RELEASE 3 June 2013

Fortum will assess the future alternatives for its Inkoo coal-fired power plant located on the south coast of Finland. The alternatives assessed include the partial closure of the power plant or even discontinuing the entire production operations, among others. Consequently, Fortum will start employee negotiations affecting all Inkoo power plant personnel. The negotiations will begin on 12 June 2013 and will last at least six weeks. There are a total of 90 employees at the power plant.

The Inkoo power plant’s profitability has been weak. The demand for coal condensing power in the Nordic electricity market has decreased as a result of the economic recession and the drop in the wholesale price for electricity. The requirements of the EU Industrial Emissions Directive (IED) will further burden the profitability of the Inkoo power plant.

"The profitability of our Inkoo power plant has remained poor. The electricity market has developed in such a way that it will most likely not be possible to profitably operate a 1970s-era condensing power plant like Inkoo in the future," says Matti Ruotsala, Executive Vice President, Power Division, Fortum. 

Commissioned in 1974-1978, the Inkoo power plant has operated in recent decades as a reserve power plant and has generated electricity for the Nordic market mainly during periods of peak consumption. The power plant consists of four 250-megawatt units, some of which have been off-line for long periods of time in extended start-up readiness.

Inkoo power plant’s third unit has been in the Energy Market Authority’s capacity reserve since October 2011. The agreement will end at the end of June 2013. Inkoo power plant was not selected for a continuation period. On 27 March 2013, Fortum notified the Nordic power exchange, Nord Pool Spot, that it will close the power plant’s unit four, which had not been in operation at all since 2008. After the notification, the power plant’s total capacity decreased to 750 megawatts.

Fortum Corporation
Corporate Communications

Additional information:
Matti Ruotsala, Executive Vice President, Power Division, tel. +358 40 048 7052
Mari Kalmari, Vice President, Corporate Communications, tel. +358 40 520 1709 
 

Fortum
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 2012, Fortum’s sales totalled EUR 6.2 billion and comparable operating profit was EUR 1.7 billion. We employ approximately 10,400 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki.

Further information: www.fortum.com