Fortum to acquire three wind power projects, totalling approximately 170 MW, in Norway

FORTUM CORPORATION INVESTOR NEWS 8 NOVEMBER 2016 14.00 EST

Fortum has today signed an agreement to aquire three wind power projects from the Norwegian company Nordkraft. The transaction consists of the Nygårdsfjellet wind farm, which is already operational, as well as the fully-permitted Ånstadblåheia and Sørfjord projects. Fortum and Nordkraft have also agreed on co-operating on the construction and operation of the wind farms.

Fortum expects the transaction to be concluded in the first quarter of 2017. The value of the arrangement will not be disclosed.

Fortum is preparing for the construction of the Ånstadblåheia and Sørfjord projects, expected to be commissioned in 2018 and 2019. When built the total installed capacity of the three wind farms would be approximately 170 MW.

“The purchase of these three excellent wind power projects is completely in line with our strategy to expand in solar and wind power. The fact that all the wind farms are situated in the same area in Norway enables high efficiency in operations and maintenance. I am also very pleased with the co-operation agreement with Nordkraft on the construction and operation of the wind farms,” says Kari Kautinen, Senior Vice President, M&A and Solar & Wind Development at Fortum.

“This is an important and strategic step for Nordkraft, securing the development of the Ånstadblåheia and Sørfjord wind projects and in addition reducing the financial risk for the Nordkraft Group. The transaction marks the beginning of a long-term partnership with Fortum and we believe that this co-operation will become a «win-win» for both parties,” says Eirik Frantzen, Nordkraft’s CEO.

Fortum Corporation

Sophie Jolly
Vice President, Investor Relations and Financial Communications

Further information:

Philippe Stohr, Vice President, Wind, Fortum, tel. +33 6 3039 8223

Distribution:

Nasdaq Helsinki
Key media
www.fortum.com

The Nygårdsfjellet, Ånstadblåheia and Sørfjord wind farms

All three wind farms are located in Northern Norway. The projects are owned and developed by the Nordkraft Group, with Vesterålskraft AS owning an approximately 9,5% minority share in the Ånstadblåheia project.

                                   Installed capacity                             Commissioning

Nygårdsfjellet            32 MW                                             2006 and 2011
Ånstadblåheia            approx. 50 MW                                expected 2018
Sørfjord                      approx. 90 MW                                expected 2019

Nordkraft

Nordkraft AS is a vertical integrated utility within hydropower (development, construction and production), distribution of power and power sales to end-users. It is owned by Narvik Municipality (50.01%), Troms Kraft (33.33%) and Hålogaland Kraft (16.16%).

Fortum

Fortum's vision is to be the forerunner in clean energy. We provide our customers with electricity, heat and cooling as well as other energy solutions that improve present and future life. Already 64% of our electricity generation is CO2 free. Our main markets are the Nordic and the Baltic countries, Russia, Poland and India. In 2015, we employed some 8,000 energy sector professionals, and our sales were EUR 3.5 billion. Fortum's share is listed on Nasdaq Helsinki. www.fortum.com

Photos:
Nygårdsfjellet wind farm