FORTUM KLAIPĖDA: NEW ENERGY PHASE

BUSINESS

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Sustainable business and responsibility

• Fortum‘s mission is based on sustainable business.

• Sustainability means economic and social responsibility in every-day activities of a company.

• Honesty, respect and creativity is the basis of Fortum‘s activities.

• Fortum continuously strives to:

– develop sustainable energy projects;– contribute to the reduction of carbon dioxide

emissions;– be a socially responsible company. The main objective is

to produce energy improving the quality of life of current and future

generations.

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Nordic countries

Production 48,1 TWh

Electricity sales 54,9 TWh

Heat sales 18,0 TWh

Heat consumers 1,6 mln.

Electricity consumers 1,2 mln.

No. 1

No. 2

Heat

Electricity sales

Distribution

Electricity production

TGC-1 Electricity production ~6 TWhHeat sales ~8 TWh

OAO Fortum Electricity production 16,0 TWhHeat sales 25,6 TWh

RussiaRussia

PolandHeat sales 3,7 TWh Electricity sales 20 GWh

Baltic countriesHeat sales 1,3 TWhElectricity sales 0,1 TWhHeat consumers 24000

FortumNumber of employees 10400Sales 6,2 billion EURProfit 1,7 billion EUR

Fortum 2012

Figures for comparison as from 1980

>70% of carbon dioxide >95% of sulfur dioxide >80% of nitrogen oxides

Electricity and heat energy produced from:

−  700 thousand tons of waste per year;−  80 million m3 of treated waste water per year;−  1 million tons of biomass per year.

Achievement in Stockholm

Fortum Klaipėda

• Established in.......................2007• Investments…...........435 million litas

Fortum Švenčionių energija

• Established in….................2001• Investments…..........17,3 million litas

Fortum Joniškio energija

• Established in….....................2000 • Investments…............13,4 million litas

Fortum Ekošiluma

• Established in…............... 2003• Investments…..........3,5 million litas

Fortum in Lithuania

ABOUT THE PLANT

• 95% of shares – UAB Fortum Heat Lietuva

• 5% of shares – AB Klaipėdos energija

• 130 million EUR – value of the project

• 50 МW – heat capacity

• 15 МW – additional heat capacity from smoke condenser during the winter time

• 20 MW – electric capacity

• 400 GWh – annual production of heat energy

• 140 GWh – annual production of electricity

• 40% of heat amount necessary for Klaipėda heat consumers

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Figures

• The plant will burn up to 230 thousand tons of municipal and industrial waste and biofuel (wood chips)

• The latest technologies used in the plant ensure the best method of waste incineration

• All heat produced is transmitted to the Klaipėda city district heating system, while electricity is supplied to common electricity network

• The new Klaipėda plant, where waste will be used as fuel, is the first object of such type in the Baltic countries

• The company employs 35 professionals

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Facts

EmissionsFebruary – April 2013

Waste compositionBefore sorting

Waste Percent

Food waste 12

Plastic 11

Plant waste 8

Glass 7

Paper 7

Fabrics 5

Metal 2

Wood 1

Other waste 47

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Typical revenue structureWaste-fired CHP plant

• Decreased dependence on imported fuels

• More stable heat prices

• Reduced costs for building new landfills

• 4 – 5 times smaller amounts of waste disposed in landfills

• Reduced environmental pollution

• Competition of heat suppliers

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Benefits to Klaipėda region

WASTE MANAGEMENT

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Waste management hierarchy

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Swedish example

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Waste management centers

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Municipal waste amountsKg per capita in the EU countries in 2010

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Collected amount of municipal wasteIn kg per capita in Lithuania

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Collected amount of municipal wasteIn thousands of tons in major cities of Lithuania in 2010

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Municipal waste managementIn EU countries in 2010

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Municipal waste managementin the European Union

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Use of secondary raw materialsin Lithuania in 2010

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Municipal waste management techniquesin Lithuania in 2010

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Municipal waste management techniquesin Sweden in 2010

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SurveyHow do you rate waste incineration as a source of energy?

Thank You for Your attention!