2011-10-20
Fortum approves Turku region energy solution in Finland
Fortum has decided to approve the co-ownership agreement to consolidate
Turku region energy production to the co-owned production company Turun
Seudun Maakaasu ja Energiantuotanto Oy (TSME) in Finland. TSME
shareholders are Fortum, Turku Energia and the municipalities of
Naantali, Raisio and Kaarina. The arrangement requires a favourable
decision from all the shareholders, after which the arrangement would
be realised at the beginning of 2012.
Fortum's shareholding in TSME would be 49.5%, Turku Energia's 39.5%,
Raisio municipality's 5%, Kaarina municipality's 3% and Naantali
municipality's 3%. Under the agreement, TSME would have the option to
also buy Fortum's Naantali power plant at a later date. The letter of
intent regarding the co-owned production company was signed in December
2010.
The intention is to transfer Fortum's Naantali power plant, Turku
Energia's Oriketo bioheat plant, the Oriketo waste-to-energy plant, and
the Kakola heat pump plant to TSME's possession. TSME will sell the
district heat it produces to Turku Energia, the steam to Fortum and the
electricity to its shareholders. The entire distribution and sales of
Turku region district heat will be transferred to Turku Energia.
"This solution would enable the development of the energy production in
Turku region together with our current customers. Comprehensive
development of energy production would also improve the competitiveness
of district heating as a heating alternative", says Jouni Haikarainen,
Vice President at Fortum's Heat Division.
Turun Seudun Maakaasu ja Energiatuotanto Oy will also continue
preparations for a new base production solution. Alternatives include
building a gasification plant for biofuels in Naantali or a completely
new 450-megawatt multifuel power plant. The goal is to significantly
increase the use of biofuels in the Turku region, which will reduce
carbon-dioxide emissions from energy production. An environmental
impact assessment process has already been done for the project. The
intention is to make a decision on the construction of new capacity to
replace the use of coal during 2012.
Energy production in the Turku region today is largely based on the
heat and electricity production of Fortum's Naantali power plant. The
power plant produces annually about 1,000 gigawatt-hours (GWh) of
electricity for the Nordic market, about 600 GWh of steam for
industrial customers, and about 1,500 GWh of district heat for Turun
Seudun Kaukolämpö Oy's heat distribution network. The plant has been
operating for 50 years, and its renewal will become topical in the near
future.
Fortum Corporation
Communications
Additional information:
Jouni Haikarainen, Vice President, Fortum, Heat Division, Finland, tel.
+358 40
709 5690
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
we deliver excellent value to our shareholders. Our activities cover
the generation, distribution and sale of electricity and heat as well
as related expert services.
Fortum's operations focus on the Nordic countries, Russia and the
Baltic Rim area. In the future, the integrating European and
fast-growing Asian energy markets provide additional growth
opportunities. In 2010, Fortum's sales totalled EUR 6.3 billion and
comparable operating profit was EUR 1.8 billion. We employ
approximately 10,500 people. Fortum's shares are quoted on NASDAQ OMX
Helsinki.
Further information:
www.fortum.com