Russia approved two Fortum Joint Implementation projects
Fortum Corporation, Press Release, 2011-01-25 11:00 CET (GLOBE NEWSWIRE) -- The
Ministry of Finance of the Russian Federation has approved two Kyoto Joint
Implementation projects initiated by Fortum: a new unit at the Tyumen combined
heat and power (CHP) plant, and the reconstruction of TGC-1's Newsky hydropower
plant.
These Joint Implementation projects as defined in Kyoto protocol will reduce
emissions in Russia, and Fortum will be able to use the related emission
reduction units (ERUs) to cover own emissions in the EU's emission trading
scheme or sell them on the market. Approval from the Finnish authorities is
still required if Fortum is to transfer the ERUs from Russia.
“The Kyoto mechanisms are an important tool in our efforts to combat climate
change,” says Fortum's President and CEO Tapio Kuula. “We have already been
working persistently with joint implementation projects in Russia for many
years, and I am delighted that these projects have been approved. We hope that
in the longer term such market-based mechanisms will continue to be utilised to
reduce emissions both in Europe and more widely.”
The new CHP unit built by Fortum in Tyumen is the only heat production project
approved in the Russian ministry's project selection process. The unit, which
was inaugurated in December 2010, and is undergoing performance test runs, has
a production capacity of 230 MW of electricity and 270 MW of heat. Fortum's
Tyumen project will reduce greenhouse gas emissions by a total of about a
million tonnes of carbon dioxide over the period 2010-2012. This new unit is
part of Fortum's extensive programme of investments in Russia which will
increase the company's total electricity generating capacity by more than 2,300
MW by the end of the programme in 2014.
The use of Kyoto mechanisms such as Joint Implementation projects is part of
Fortum's efforts to mitigate climate change. Fortum is currently involved in
five further projects in Russia which together with these newly approved
projects are expected to reduce greenhouse gas emissions by a total of some 3.5
million tonnes of carbon dioxide over the years 2009-2012. The company has
additionally invested a total of 10 million euros in two international carbon
funds.
The Russian-based OAO Fortum is a subsidiary of Fortum. In OAO TGC-1 Fortum has
a 25% shareholding.
Fortum Corporation
Corporate Communications
For more information:
Pirja Heiskanen, Vice President, Trading and Industrial Intelligence: tel. +358
50 4536314
Kari Kankaanpää, Sustainability Manager, Climate and Environmental Affairs:
tel. +358 50 4532330
Fortum in brief
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 sale
of electricity and heat as well as expert services for the energy industry.
Fortum's operations focus on the Nordic countries, Russia and Baltic Rim area.
The competitive energy markets in the fast-growing European and Asian economies
also offer growth opportunities in the future. In 2009 Fortum's sales totalled
EUR 5.4 billion and operating profit was EUR 1.8 billion. The Group employs
approximately 11,000 people. Fortum's shares are quoted on NASDAQ OMX Helsinki.
For more information: www.fortum.com
