Fortum

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Fortum Oyj
Type Julkinen osakeyhtiö (OMXFUM1V)
Industry Electric utility
Founded 1998
Headquarters Espoo, Finland
Key people Sari Baldauf (Chairman), Tapio Kuula (President and CEO)
Products Electricity generation, distribution and Electricity sales
Revenue €6.056 billion (2013)[1]
Operating income €1.712 billion (2013)[1]
Profit €1.204 billion (2013)[1]
Total assets €24.420 billion (end 2013)[1]
Total equity €10.662 billion (end 2013)[1]
Employees 9,900 (end 2013)[1]
Website www.fortum.com

Fortum Oyj is a Finnish energy company focusing on the Nordic and Baltic countries, Poland and Russia. The head of the company is Tapio Kuula, President and CEO.[2] Fortum generates, distributes and sells electricity, heat and steam and operates power plants. The company also provides other energy related services and products. Fortum is listed on NASDAQ OMX Helsinki stock exchange and shares the number one position in the Carbon Disclosure Project's (CDP) Nordic climate index.[3]

History[edit]

Imatrankoski hydroelectric power plant.

The predecessor of Fortum is Imatran Voima, which was founded in 1932 to operate the Imatrankoski hydroelectric power plant in Imatra. Imatran Voima acquired and built a number of other power plants, such as the largest hydroelectric power plants along the Oulujoki river, Inkoo and Naantali coal-fired powerplants and the Loviisa nuclear power plant. Fortum Corporation was founded in 1998.[4] It was created from the merging of the Finnish state owned power and heat company IVO (Imatran Voima Oy), founded in 1921, and Neste Oy, the Finnish national oil company. The Neste assets were divested into separate stock-listed company in 2005.

2013-12-12 Fortum announced to sell its electric-grid business in Finland to Suomi Power Networks with price of c. 2.55 G-euro. Deal includes biggest electric grid in Finland holding 20% market share and 320 employees.[5] Suomi Power Networks is owned by First State Investments (40%), Borealis Infrastructure (40%), Keva (12,5 %) and LähiTapiola (7,5 %).[6]

Energy production[edit]

Hydroelectric power[edit]

Headquarters of Fortum Corporation in Espoo, Keilaniemi, Finland

Hydro power has always been Fortum’s core activity. The company currently owns and runs about 260 hydro power plants, mainly in Finland and Sweden, for a 4,683MW production capacity (2010). Hydro power amounts to 48% of the power produced by Fortum in Nordic countries, and 1/3 of the total power produced by Fortum each year.

Fortum meets the ISO 14001 norm for preservation of the environment, and the OHSAS 18001 norm for health and safety. The hydro power fleet has benefitted from a stable investment policy: in its ongoing hydro power investment program Fortum has invested about 270 millions euros for the modernization of almost 50 hydro power production sites since the early 1990s.

Nuclear power[edit]

Fortum has been producing nuclear power since 1977. The company owns the nuclear plant in Loviisa, Finland, which covers around 10% of the country's energy production. Its nuclear assets also cover Sweden with share ownership in the nuclear plants in Forsmark and Oskarshamn. In addition, Fortum is shareholder in Teollisuuden Voima Oyj, which currently operates two nuclear units in Olkiluoto, Finland, and is constructing a third unit in co-operation with Areva-Siemens consortium. In Finland, the two nuclear power plants of Loviisa are wholly owned by Fortum. Furthermore, Fortum owns a 26.6% stake in the Teollisuuden Voima, which operates two nuclear power plants at Olkiluoto and is currently building a third one.

Fortum owns 45.5% of Oskarshamn Nuclear Power Plant and 22% of Forsmark Nuclear Power Plant in Sweden. In year 2004 Fortum produced 17.9% of Swedish nuclear electricity (13.4 TWh / 75 TWh).[7]

Fortum owns 25.7% of Russian nuclear power company Polyarnye Zori as partner of TGK-1.[8]

Finland’s largest energy utility Fortum concentrates in atomic energy and energy use instead of renewable energy and energy saving technology. Fortum signed an agreement with Rosatom and British Rolls-Royce Motor Cars that is a wholly owned English subsidiary of German automaker BMW to develop nuclear power in September 2013.[9] Expensive Fukushima disaster cleanup had no change in Fortum business strategy. In Finland majority of the nuclear plant disaster costs will be distributed to the tax payers. European Union accept favouring of nuclear power in the electricity competition.

Combined production of heat and electric power (cogeneration or CHP)[edit]

Fortum produces and sells heat in Nordic countries and Baltic countries, Russia and Poland, with 31 plants combining production of heat (district heating) and electric power. Fortum is the 4th largest heat producer globally. Fortum announced in 2010 construction by 2013 of two CHP utilities which would use waste as a fuel (Klaipeda, Lithuania and Brista, Sweden).

Year Production (TWh) Emission (Gt CO2) kg CO2/MWh
2002 48 7 146
2003 53 9.14 172
2004 56 7.93 143
2005 52 1.99 38
2006 54 5.82 107
2007 52 3.34 64
2008 53 2.16 41
2009 49 2.02 41

Solar Power[edit]

Fortum belives that in the future, the energy from the sun is used either directly as solar electricity and heat or indirectly as hydro, ocean, wind and bioenergy. The call this system a Solar Economy.[10]

The company is gradually moving from the research phase of solar energy to commercial use. In June 2013, Fortum acquired a 5 MW solar power plant in the state of Rajasthan in India.[11] The company has stated that its ambition is to build a small photo-voltaic solar portfolio to gain experience in different solar technologies and in operating in the Indian power market.[12] Fortum also sells solar power kits in the Nordic countries.

Environment[edit]

Fortum has the biggest market share of ecolabeled electricity in Finland.[13] With three hydropower plants, seven biomass plants and four wind parks the company has also more EKOenergy certified power stations than any other company in Finland.[14] According to Fortum's own publications it is also the largest seller of Bra Miljöval certified energy in Sweden.[15]

Research and development – R&D[edit]

Fortum's R&D activities are divided into different themes among which:

  • Maintenance and life cycle management of power plants
  • Combustion technology
  • Nuclear security and efficiency
  • Replacement of fossile energies by green energies
  • Wave power technologies

Fortum also created “Fortum Innovation Awards”[16] to incite its employees to contribute to innovation and development by suggesting ways for improvement. For instance, three ideas are selected during the tri-annual evaluation reviews by drawing among all submitted ideas and rewarded by a 500 euro net cash award or equivalent.

Fortum contributes to the gathering of financial funds benefitting CleanTech to develop Smart Grids activities in Northern Europe.

Fortum and the European Market[edit]

Fortum positions itself as a European energy player in the context of the market opening. Through the Baltic Energy Market Interconnection Plan Fortum meets pressing needs from Baltic countries.

Sustainable development[edit]

Fortum participates in surveys on fishing industry with municipalities, environmental organizations and research institutes in Finland, Sweden, Denmark, Norway, Iceland, Russia and the Baltic Rim Area. Fortum introduces 700,000 smolts into the Bothnia gulf In Finland and Sweden every year.[17] The company also participates in re-populating white fishes, pikeperches and Touladi in regulated rivers and lakes used for hydroelectric power production.

Foundation and partners[edit]

The Fortum Foundation get involved in causes such as protection of childhood, sport, environmental care and research support. Fortum also worked with Greenpeace.[citation needed]

References[edit]

  1. ^ a b c d e f "Financials 2013". Fortum. Retrieved 17 March 2014. 
  2. ^ "Tapio Kuula". Fortum. Retrieved 2009-05-19. 
  3. ^ "CDP Nordic 260 Climate Change Report 2012". Carbon Disclosure Project. Retrieved 2014-03-18. 
  4. ^ "Our history". Fortum. 2014-02-21. Retrieved 2014-03-07. 
  5. ^ Fortum myy sähköverkot 2,55 miljardilla. 12.12.2013 yle, viitattu 21.12.2013 (Finnish)
  6. ^ http://www.fortum.com/fi/media/Pages/fortum-myy-suomen-sahkonsiirtoliiketoimintansa-suomi-power-networks-oylle-255-miljardin-euron.aspx (Finnish)
  7. ^ Ägarstrukturen på elmarknaden Vem äger vad på den svenska elmarknaden? Energimarknadsinspektionen 5/2006
  8. ^ Kuolassa riittäisi sähköä myyntiinkin Jukka Lehtinen, Tekniikka & Talous 18.5.2006
  9. ^ Fortum inks nuclear, wind power deals with UK firms yle 5.9.2013
  10. ^ "Future energy system - Solar Economy". Fortum Oyj Annual Report 2013. 2014-02-19. Retrieved 2014-04-17. 
  11. ^ "Fortum Buys India Solar Plant, Plans More Investment". Bloomberg. 2013-06-11. Retrieved 2014-04-17. 
  12. ^ "Fortum launches solar power production in India by acquiring a 5-MW photo-voltaic solar power plant". Fortum Oyj. 2013-06-11. Retrieved 2014-04-17. 
  13. ^ "EKOenergy | The European ecolabel for electricity". Ekoenergia.fi. 2014-02-03. Retrieved 2014-03-07. 
  14. ^ "EKOenergy | The European ecolabel for electricity". Ekoenergia.fi. 2014-02-03. Retrieved 2014-03-07. 
  15. ^ [1][dead link]
  16. ^ [2][dead link]
  17. ^ "Hur Arbetar Fortum med vattenkraftens inverkan pa naturmiljön?" SERO journalen, march 2011

External links[edit]