Fortum starts commercial operation of Chelyabinsk GRES power plant's unit 1 in Russia; Chelyabinsk GRES 2 further delayed

FORTUM CORPORATION PRESS RELEASE 1 December 2015

Fortum has commissioned unit 1 of its Chelyabinsk GRES combined heat and power plant in Russia. The unit's certified capacity is 247.5 megawatts (MW) electricity and the evaluated heat capacity 174.45 MW. Fortum starts to receive capacity payments for Chelyabinsk 1 under the Russian government's Capacity Supply Agreements (CSA) as of 1 December 2015. The unit 2 of Chelyabinsk GRES is estimated to start commercial operation in early 2016. The slight postponement is due to delays in construction. Upon completion, the combined capacity of the Chelyabinsk GRES units 1 and 2 will be 495 MW electricity.

"Our extensive investment programme in Russia that started in 2008 is now nearly completed. Our new CHP units are more efficient and competitive than the older units. In addition, they have significantly lower fuel consumption and 5 times lower NOx concentration of flue gases compared to the old equipment at the Chelyabinsk GRES power plant," notes Alexander Chuvaev, Executive Vice President, Russia segment of Fortum. "Energy efficiency and more environmentally friendly and reliable technology will also benefit our local residential and industrial customers."

Fortum's investment programme in the South Urals and Western Siberia in Russia has consisted of eight new gas-fired power plant units and the modernization of the existing units. After the programme is concluded, Fortum will have one of the most modern fleets in Russia, and it has nearly doubled its power generation capacity in Russia to approximately 5,200 MW. The new capacity will receive considerably higher capacity payments than the old capacity under the Capacity Supply Agreements.

Fortum announced in October 2015 that the targeted operating profit (EBIT) level of RUB 18.2 billion in the Russia segment is delayed by two to three years. Previously the run-rate EBIT level was targeted to be reached during 2015 after finalizing the investment programme.

Fortum Corporation
Corporate Communications
 

Further information
Media:
- Helena Aatinen, Senior Vice President, Communications, Fortum, tel. +358 10 45 20480
- Denis Litoshik, Director, Corporate Communications and Public Relations, Russia Division, tel. +7 (985) 383-52-61
Investors and analysts:
- Sophie Jolly, Vice President, Investor Relations, tel. +358 10 45 32552

Background information:
Fortum in Russia

Fortum
Fortum’s purpose is to create energy that improves life for present and future generations. Fortum’s expertise is in CO2-free and efficient electricity and heat production. The company also offers energy-related products and expert services to private and industrial customers and energy producers. Fortum’s main areas of operation are the Nordic and the Baltic countries, Russia and Poland. In 2014, the annual sales (excluding the divested electricity distribution business) totalled EUR 4.1 billion, and comparable operating profit was EUR 1.1 billion. The company employs approximately 8,000 people. Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com