Fortum to invest in a new combined heat and power plant in Zabrze, Poland

FORTUM CORPORATION STOCK EXCHANGE RELEASE 31 March 2015 at 10.30 EEST

Fortum has decided to build a new multifuel combined heat and power (CHP) plant in Zabrze, Poland. The total value of the investment is approximately EUR 200 million (PLN 870 million). The new plant is planned to start commercial operations by the end of 2018, providing district heating to some 70,000 households in Zabrze and Bytom.

The new plant will primarily be fuelled by refuse derived fuel (RDF) and coal but can also use biomass and a mixture of fuels. The amount of RDF can be up to 50% of the total fuel usage. The residential and industrial waste for RDF is sourced locally. The new plant will replace the existing purely coal-fired, outdated units in Zabrze and Bytom. The investment is expected to significantly improve the efficiency of operations and reduce CO2 and other emissions in the area.

The plant will have a production capacity of 220 megawatts (MW) including 145 MW of heat and 75 MW of electricity, and its annual production is estimated to be approximately 730 and 550 GWh of heat and electricity respectively. The construction project is estimated to begin in the summer, subject to the local environmental impact assessment process and other negotiations.

"Efficient combined heat and power production is one of Fortum's three strategic core competences. With our experience in efficient energy production and focus on tackling climate change, we want to contribute to the ongoing transformation of the Polish energy sector." says Markus Rauramo, Senior Vice President of Heat, Electricity Sales and Solutions division at Fortum. "Poland is one of the biggest district heating markets in Europe, and we are well established there."

Fortum has been operating in Poland since 2003. It has currently four CHP units and over 800 km of district heating network, which serve in total 360,000 households in the cities of Płock, Wrocław, Częstochowa, Zabrze and Bytom. The total power generation capacity is currently over 200 MW and heat generation capacity over 1,100 MW. In the end of 2014, Fortum had some 600 employees in Poland. Zabrze is part of the fast developing Katowice area in Upper Silesia, with some 2.4 million inhabitants and 21 cities.
 

Fortum Corporation
Helena Aatinen, Senior Vice President, Corporate Communications

Further information:
Markus Rauramo, Senior Vice President, Heat, Electricity Sales and Solutions, tel. +358 10 45 24529

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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
2014, Fortum’s sales totalled EUR 4.75 billion and comparable operating profit
was EUR 1.35 billion. We employ approximately 8,800 people. Fortum’s shares are
traded on the Nasdaq Helsinki. www.fortum.com