Facts and figures

3

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.

4

Figures about Lithuania in 2012

• Population - 3 million

• Main energy projects:

– Nuclear power plant

– LNG terminal (under construction)

– Electrical connections with Sweden (under construction) and Poland

– Gas connection with Poland

– Biofuel projects

Prices:

– Electricity .... 46,2 EUR/MWh

– Gas ............ 43,97 EUR/m³

– Biofuel ........19,85 EUR/MWh

Demand:

– Electricity ..... 10.6 TWh

– Gas ............... 3.3 mlrd. m³

– Heat (27,2% from RES) 9.01 TWh

5

Fortum in Lithuania

Fortum Klaipėda

• Established in.......................2007

• Investments…....130 million EUR

Fortum Švenčionių energija

• Established in….................2001

• Investments…......5 million EUR

Fortum Joniškio energija

• Established in….....................2000

• Investments….......3,9 million EUR

Fortum Ekošiluma

• Established in…............... 2003

• Investments….....1 million EUR

Waste management

7

Swedish example

Source: Swedish Waste Management and Recycling Association

0

10

20

30

40

50

60

70

80

90

100

Land fillsEnergy from wasteBiological treatmentRecycled material

8

Municipal waste amountskg per capita in the EU countries in 2010

EU-27 co

untries

Cyprus

Luxembourg

Denm

ark

Irelan

d

Netherl

ands

Malt

a

Austria

German

ySpain

France

Italy

United K

ingdom

Portugal

Finlan

d

Belgiu

m

Sweden

Greece

Sloven

ia

Hungary

Bulgari

a

Lithuan

ia

Roman

ia

Slovak

ia

Czech

Rep

ublic

Poland

Estonia

Latvia

0

100

200

300

400

500

600

700

800

502

381

315

9

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

Vilnius Kaunas Klaipėda Panevėžys Šiauliai

199.5

141.3

76.3

57.844.7

10

Municipal waste managementin EU countries in 2010

EU-27 co

untries

German

y

Netherl

ands

Austria

*

Belgiu

m

Sweden

Denm

ark

Luxembourg

France

Finlan

d

United K

ingdom

*

Italy

*

Irelan

d

Sloven

iaSpain

Portugal

Czech

Rep

ublic

Hungary

Poland

Estonia

Cyprus

Slovak

ia

Greece

*M

alta

Latvia

Lithuan

ia

Roman

ia

Bulgari

a0%

20%

40%

60%

80%

100%

Disposal of municipal waste in landfills RecyclingComposting Incineration

11

Municipal waste managementin the European Union

1995 2000 2005 2010

6857 57

38

15

16 16

22

1116 16

25

6 11 11 15

Composting

Recycling

Incineration

Landfilling

12

Use of secondary raw materialsin Lithuania in 2010

577,000 tons

59,000 tons

105,000 tons

16,000 tons27,000 tons

Metal

Glass

Paper

Tires

Plastics

13

Municipal waste management techniquesin Lithuania in 2010

94 %

2%

4%

Disposal of municipal waste in landfills

Composting

Recycling

14

Municipal waste management techniquesin Sweden in 2010

1%

14%

49%

36%

Disposal of municipal waste in landfills

Composting

Incineration

Recycling

15

Surveyhow Lithuanians rate waste incineration as a source of energy

14%

68%

18%

Negatively Positively

No opinion

The Plant

17

Three challenges

• Municipality: – new standards and laws

– long procedures and fear of responsibility

• Society:– fear of pollution

– impact of politicians

– no strong communities

– distrust of local authorities

• Transparency:– untransparent media and transparent company

– overall distrust

18

Figures

• 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 winter time

• 20 MW – electric capacity

• 400 GWh – annual production of heat

• 140 GWh – annual production of electricity

• 40% of heat amount necessary for Klaipėda heat consumers

19

Facts

• The plant will burn up to 245 thousand tons of municipal and industrial waste and biofuel (wood chips)

• The best available 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 Baltic countries

• The company employs 35 professionals

• More than 30 service agreements

20

Emissions September, %

Carbon m

onoxide

Nitrogen

oxid

es

Sulphur d

ioxid

e

Amm

onia

Total o

rgan

ic ca

rbon

Particl

es

41

80

714

7 6

100 100 100 100 100 100

Average value of the indicator Norm

21

Benefits to Klaipėda region and Lithuania

• 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

• One of the largest greenfield investment in Lithuania

• About 35 million EUR paid to local companies during the construction process

• Plant is in line with National Energy Strategy

Thank You for Your attention!Questions?