First emission reductions transferred from Russia for Fortum's use

PRESS RELEASE 6 November 2012

The new unit at Tyumen CHP-1 has reduced carbon dioxide emissions by 173,500 tonnes

Fortum received the first Joint Implementation (JI) emission reduction units (ERU) from Russia in October. These ERUs originate from Fortum's Russian subsidiary, OAO Fortum's, new power plant unit at Tyumen CHP-1. During its first year of operation, the plant has contributed to the reduction of carbon dioxide emissions by 173,500 tonnes. Fortum will be able to use the resulting emission reduction units to cover its own emissions in the EU's emission trading scheme or sell them on the market. The emission reductions have been verified by Bureau Veritas, an independent certification company.

"I am very happy that we have been able to contribute to climate change mitigation also by using the Joint Implementation (JI) mechanism, which together with emissions trading enables cost-efficient reduction of carbon dioxide emissions. ERUs from our Joint Implementation projects with OAO Fortum will be used in the EU emissions trading scheme. Joint Implementation projects enable environmental improvements in energy production in our Russian energy production plants," says Markus Rauramo, CFO, responsible for sustainability at Fortum.

This new unit at Tyumen CHP-1 was the first one commissioned within Fortum’s extensive investment programme in Russia in December 2010. The investment programme will increase Fortum’s electricity production capacity in Russia by 2,400 megawatts (MW) by the end of 2014. The new unit's combined-cycle gas turbine technology represents the best available technology in gas-fired power production. Its overall energy-efficiency is 85%.

The use of Kyoto mechanisms, such as Joint Implementation, is part of Fortum’s efforts to mitigate climate change. Earlier, apart from the Tyumen CHP-1 unit, the Russian Ministry for Economic Development approved three other OAO Fortum power plant units as JI projects: the Chelyabinsk CHP-3 unit and two Nyagan GRES units. These JI projects, as defined in the Kyoto Protocol, will reduce carbon dioxide emissions in Russia.

Fortum Corporation
Corporate Communications

For more information:
Kari Kankaanpää, Sustainability Manager, Climate and Environmental Affairs: tel. +358 50 453 2330

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 deliver excellent value
to our shareholders. Our activities cover the generation, distribution and
sales of electricity and heat as well as related expert services.

Fortum's operations focus on the Nordic countries, Russia, Poland and the
Baltics. In the future, the integrating European and fast-growing Asian energy
markets provide additional growth opportunities. In 2011, Fortum’s sales
totalled EUR 6.2 billion and comparable operating profit was EUR 1.8 billion.
We employ approximately 10,800 people. Fortum’s shares are quoted on NASDAQ OMX
Helsinki.

Further information: www.fortum.com