News | February 10, 2014

Fortum Invests In TSE's New Power Plant In Naantali, Finland

Espoo Finland (GLOBE NEWSWIRE) - Fortum continues investments in Finland and participates in its associated company Turun Seudun Energiantuotanto Oy’s (TSE) new combined heat and power (CHP) plant in Naantali, Finland. The new power plant will cost EUR 260 million of which Fortum's direct commitment is EUR 40 million. The plan is to commission the new power plant in autumn 2017.

TSE’s new power plant will replace the 50-year-old coal-fired power plant in Naantali. The new multifuel power plant can be fuelled by biomass, coal and high-quality recycled waste. The plan is to also design the plant to operate exclusively on biomass. The biomass used will consist mainly of locally sourced wood chips transported from a radius of about 100‒150 kilometres around the plant. The annual wood chip consumption is initially expected to be about 0.7 million cubic meters and eventually as much as 1.2 million cubic meters.

The investment project will have a significant impact on employment. Sourcing of the domestic biomass will create some 200 permanent jobs once the plant is commissioned. Additionally, the peak of the construction phase will provide jobs for about 500 people. Construction of the new plant is planned to begin at the end of 2014. Upon completion, the plant will produce 900 GWh electricity and 1,650 GWh heat annually. The plant’s production capacity is 142 MW electricity and 244 MW heat.

“By investing in a new power plant in Naantali, we are pursuing growth in energy-efficient combined heat and power production in line with our strategy. The fact that the new power plant aims to utilise as much domestic biomass as possible also makes the new project an interesting one for Fortum,” says Jouni Haikarainen Vice President, Fortum Heat Division.

In December 2013, TSE’s Board of Directors unanimously agreed to propose the power plant investment to the Annual General Meeting. The project will be funded by shareholders and external financing. Fortum has a 49.5 per cent interest in TSE.

Energy-efficient combined heat and power production was among Fortum’s most significant investment targets in 2013. During the year, the company commissioned biomass-fired CHP plants in Järvenpää, Finland, and Jelgava, Latvia. Production was also started at the new waste-to-energy CHP plant in Klaipeda, Lithuania and test-runs began at a similar facility in Brista, Sweden. Additionally, Fortum commissioned a unique bio-oil plant integrated with a CHP plant in Joensuu, Finland. The total value of these investments is about EUR 550 million.

Fortum Corporation
Corporate Communications

Additional information:
Jouni Haikarainen, Vice President, Fortum Heat Division, Finland, tel. +358 40 709 5690

Turun Seudun Energiantuotanto Oy
Fortum sold its shares in Fortum Heat Naantali Oy, which owns the Naantali power plant, to Turun Seudun Energiantuotanto Oy on 31 December 2012. The plant employs about 100 Fortum employees who provide plant operation and maintenance services to TSE. TSE is owned by Fortum (49.5%), Turku Energia (39.5%), Raisio municipality (5%), Kaarina municipality (3%) and Naantali municipality (3%).

Fortum
Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2013, Fortum’s sales totalled EUR 6.1 billion and comparable operating profit was EUR 1.6 billion. We employ approximately 9,900 people. Fortum’s shares are traded on the NASDAQ OMX Helsinki. www.fortum.com

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SOURCE: Fortum