2024-03-04

Fortum to end the use of coal in Finnish district heat production ahead of schedule

FORTUM CORPORATION ONLINE NEWS 4.3.2024

Fortum has today decided to close the last coal-fired unit used for district heat production in Finland on 28th of April 2024. The unit at the Suomenoja production plant in Espoo is approaching the end of its useful life and further investments in it are no longer technically and economically viable. As a result of the decision, Fortum's Heating and Cooling business will phase out coal in Finland one year earlier than expected. 

The coal phase-out is part of the Espoo Clean Heat programme of Fortum and the City of Espoo, during which Fortum will make district heating in the Espoo, Kauniainen and Kirkkonummi region carbon neutral by 2030. Fortum is investing around EUR 300 million in the development of district heating in the region, which increasingly relies on excess heat recovery, heat pumps, several hundred megawatt electric boilers and heat storage. In 2023, the share of emission-free district heat production was already 63%, and the closure of the unit will significantly increase this figure.

"Espoo Clean Heat is one of Fortum's most important and visible projects in Finland. I am very pleased that by closing the Suomenoja coal unit ahead of schedule, we are able to take a leap towards decarbonising our own operations at Fortum's home base in Espoo. We have been producing district heat reliably for more than 70 years, and we will continue to lead the way in providing modern and increasingly cleaner energy," says Markus Rauramo, CEO of Fortum. 

Started in 1977, the coal-fired unit has a district heat production capacity of 130 megawatts in line with environmental requirements. The electricity generation capacity is 68 megawatts.

"We have done our part to ensure energy sufficiency also this winter by maximising the lifetime of the Suomenoja coal unit," says Mika Lehtonen, Vice President of Fortum's Heating and Cooling business in Finland. "However, the unit has now reached the end of its life cycle. At the same time, I am very pleased that the increase in carbon-neutral production has progressed as planned. It will allow us to continue to provide our customers with a secure supply of heat, and we can now safely close the coal unit."

In the transition period of the coming years, heat and also electricity production during the coldest periods will be ensured by gas supplied to Finland via the LNG terminal and the Balticconnector gas pipeline. When heat offtake from Microsoft's future data centres in Kirkkonummi and Espoo starts, gas will be replaced by excess heat from the data centres. They are expected to gradually produce about 40% of the annual district heating demand of the customers.

In line with Fortum's strategy, the company has set ambitious environmental targets to reliably produce clean energy and promote industrial decarbonisation in the Nordic countries. In 2023, 98% of Fortum's electricity production was emission-free with specific emissions of 16 g/kWh.

Fortum Corporation
Communications

Further information: 

Mika Lehtonen, Vice President, Heating and Cooling Finland, mika.lehtonen@fortum.com, tel. +358 40 726 5785

Fortum News Desk, newsdesk@fortum.com, tel. +358 40 198 2843

www.espoocleanheat.com