Russia approved two Fortum Joint Implementation projects
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.
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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