FORTUM CORPORATION PRESS RELEASE 15 October 2015
Fortum and Lietuvos Energija will form a joint venture to build a waste-to-energy combined heat and power plant (CHP) in Kaunas, Lithuania. The CHP plant is expected to be commissioned in the autumn 2019.
UAB Fortum Heat Lietuva will be a minority owner of the new joint venture, UAB Kauno kogeneracinė jėgainė (KKJ) with up to 49% share. The total investment cost of the plant is approximately EUR 150 million, of which Fortum's direct commitment is approximately EUR 20 million. The establishment of the joint venture is subject to EC merger clearance. The decision is expected by end of 2015.
According to current plans, the new plant will use annually approximately 200,000 tons of local municipal waste to produce heat to Kaunas city district heating network, which serves approximately 111,000 households and 3,500 businesses. The plant is estimated to reduce the CO2 emissions by 65,000 tons per year. Furthermore, it will significantly reduce the need to deposit waste in the landfills.
"The new waste-to-energy plant continues Fortum's investments in the Baltic countries in energy-efficient CHP technology using local fuels. It is also in line with the National Energy Independence Strategy in Lithuania," says Vitalijus Žuta, head of UAB Fortum Heat Lietuva. "We have very good experiences from our first waste-to-energy plant in Klaipeda, Lithuania, which has been in operation since spring 2013."
The new plant will produce annually approximately 500 GWh heat and 170 GWh electricity.
Combined heat and power production is very energy efficient and low emission production form, where nearly 90% of the fuel's energy can be utilized. During the past few years Fortum has invested significantly in new CHP plants in Finland, Sweden, Estonia, Latvia, Lithuania and Poland.
Andrius Kasparavičius, +37069817740, Fortum Spokesperson in Lithuania
Fortum’s purpose is to create energy that improves life for present and future generations. Fortum’s expertise is in CO2-free and efficient electricity and heat production. The company also offers energy-related products and expert services to private and industrial customers and energy producers. Fortum’s main areas of operation are the Nordic and the Baltic countries, Russia and Poland. In 2014, the annual sales (excluding the divested electricity distribution business) totalled EUR 4.1 billion, and comparable operating profit was EUR 1.1 billion. The company employs approximately 8,000 people. Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com
Lietuvos Energija group is a state-controlled company group. The main activities of the group include power and heat distribution and supply, natural gas trade and distribution as well as construction and maintenance of power plants and grid. With its more than 5,600 employees, Lietuvos Energija group controls and operates key Lithuanian power plants ensuring the security of energy supply, nation-wide distribution network, and services to more than 1.6 million consumers across Lithuania. It also offers electricity supply services, operates 8.2 thousand kilometers of distributor gas pipelines and supplies gas to more than 560 thousand customers abroad.