Press release

Fortum’s new bio-fuelled CHP plant in Stockholm in final testing phase before commissioning

12 February 2016, 16:30 EET

Fortum Corporation Press release 12 February 2016

Fortum’s new bio-fuelled combined heat and power (CHP) plant, co-owned by
Fortum and the City of Stockholm, has started the final tests before
commissioning. The plant uses forest residues and wood waste to provide
district heating for 190,000 households and electricity equivalent to 20,000
rooftops covered with solar panels. The new unit is one of the world’s largest
biomass-fuelled CHP facilities and will reduce CO2 emissions in Stockholm. As
part of an integrated energy system for power generation, waste management and
recovered heat from data centres, the new facility will further strengthen
Fortum’s leading expertise in sustainable solutions for cities in line with the
company’s new strategy.

“This an important step in the development of sustainable energy solutions for
Stockholm, but it is also an important showcase: many countries and cities are
facing urbanisation-related challenges. Now we can provide sustainable
solutions that also connect waste management, bio gas production, district
cooling and other aspects of a circular economy,” says Anders Egelrud, managing
director of Fortum Värme in Stockholm.

“With increasing volumes of intermittent renewable energy, the demand for
effect will increase during the cold and windless days. As CHP is flexible, we
can adjust the production of both heat and electricity to meet the demand; this
means that we will also provide a key component in the growing renewable energy
system,” says Anders Egelrud.

Construction of the new plant started in 2013 as one of the main components of
the strategy to have a system based only on renewable and recycled energy
before 2030 in Stockholm. The fuel, forest residues and wood waste, are
transported by both sea and railway. The plant is estimated to produce 750
gigawatt-hours (GWh) electricity and 1,700 GWh heat annually. It uses 12,000
cubic meters of wood chips per day, which means 3-4 shipments and 5 trains per
week. The power plant’s underground storage facility has a capacity of 50,000
cubic meters.

When fully operational, the new biomass power plant will reduce emissions by
126,000 tonnes annually. The emissions reduction corresponds close to 12% of
the annual emissions from the area’s transport sector.

Growing cities create challenges, such as inefficient heating, cooling,
electricity production and increasing waste volumes. Fortum has expertise and
experience in providing sustainable urban solutions for efficient district
heating and cooling, integrated systems for electricity consumers,
waste-to-energy and management, and e-mobility.

Fortum Corporation
Corporate Communications

Further information: Anette Ullskog, Communications Director, Fortum Värme,
+46 725093336

Fortum's vision is to be the forerunner in clean energy. We provide our
customers with electricity, heat and cooling as well as other energy solutions
that improve present and future life. Already 64% of our electricity generation
is CO2 free. Our main markets are the Nordic and the Baltic countries, Russia,
Poland and India. In 2015, we employed some 8,000 energy sector professionals,
and our sales were EUR 3.5 billion. Fortum's share is listed on Nasdaq