Fortum In Lithuania

• Fortum is operating in Lithuanian energy market since 1999

• During the years have proved to be a responsible, competent and honest partner and neighbor for the local communities

• The strategy of Fortum in Lithuania is to produce combined heat and power, increase energy efficiency in district heating, maintain a long-term competitiveness and reduce the impact on environment

• In Lithuania, Fortum operates the heat networks of Joniškis and Švenčionys, is building a plant in Klaipėda and plans investments in Kaunas and Vilnius

Overview

• The following fuel types are being used for power generation - natural gas (49.3%), biomass fuel (wood) (48.2%), oil products (2.5%)

• 11 boiler-rooms, 26 km of heating networks, heating centers of residential houses are operated in Joniškis and Švenčionėliai

• Heat sales in 2011 - 63 Gwh

• Produced and supplied biomass fuel in 2011 - 50 Gwh

• Natural gas sold in 2011 – 43 m. m3

• Main activity trends:• acquisition of shares from heating supply companies,

investment in heat generation and transmission, investment in electrical power and heat generation

• biomass production and supply• consultation for companies

Current Operations

Fortum Heat Lietuva

UAB „Fortum Klaipėda“

• Heat energy and power production• Founded – 2007• Ownership – 95% (Fortum) , AB “Klaipėdos energija” – 5 % • Investments into the CHP plant - 420 million litas• Planned heat capacity - 50 MW • Planned electricity capacity - 20 MW

UAB „Fortum Švenčionių energija“

• District heating operator of Švenčionys, Švenčionėliai and Pabradė • Founded – 2001• Ownership – 50% (Fortum), municipality – 50%• Total investments - 16,6 million in: new boilers (8,5 MW biofuel and 3,2 MW gas) and renovation of

existing boilers renovation of 64% of district heating network and heat substations

Current Operations

Current Operations

UAB „Fortum Joniškio energija“

• District heating operator of Joniškis, Gataučiai and Žagarė• Founded - 2006• Ownership - 66,2% (Fortum), municipality – 19,6%• Total investments - 9 million in 24 km of district heating

network, boilers and substations

UAB „Fortum ekošiluma“

• Production of biofuel• Founded - 2001• Ownership - 100%

Kaunas• Estimated investment in the CHP plant - approx. 470 – 570 million

litas

Fortum Klaipėda

CHP – a simple and safe technique with great benefits

Overview

• At the moment ”Fortum Heat Lietuva” owns 95% of ”Fortum Klaipeda” shares, other 5 % - AB Klaipėdos energija

• Total planned investment - EUR 130 million

• Power plant capacity for heat power will consist of 50 MW from fuels incineration plus 14 MW during Winter time from flue gas condenser. It planned to produce 140 GWh of electricity and about 380 GWh of heat power

Overview

• Capacity – 50 MW of heat and 20 MW of electricity

• Klaipėda CHP plant will use biofuels as well as municipal and industrial waste as fuel, producing both heat energy that will be supplied to Klaipeda city, covering 40% of Klaipeda’s heat demand, and electricity that will be sold in the national grid Klaipeda CHP plant will use the latest available technologies that will secure maximum efficiency of fuel consumption as well as from flue gas cleaning

• Planned commissioning – 2013

Annual reduction of CO2

emissions - by

96000 tons

Steam boiler of a grate type 85MW • Steam pressure - 47 bars, temperature - 400º C, • Steam generation capacity - 105 t/h• Steam turbine and generator 20MW

Annual output will be generated: • about 400 GWh thermal energy• about 140 GWh electrical power

Fuel types which are being used at CHP

• Biomass fuel (wooden chips) - 75’000 tons• Public utilities waste - 115 -130’000 tons• Industrial waste - 50’000 tons

Public utilities waste from Klaipėda region after the primary screening on the locations of their collection or after the secondary screening

Fuel types

Benefits for Klaipėda region

• Reduces dependence on imported fuels (natural gas) when supplying heat to Klaipeda city, whereas 40% of heat from total needed for the city will be produced in this CHP plant.

• Reduced dependence on imported fuel (gas)

• More stable heat tariff

• Reduced expenses for construction of new waste dumps and management of the existing ones since the amount of waste reduces by 4 to 5 times as a result of waste burning process

• Reduced impact on the formation of the greenhouse gas effect since the gas originating from waste dumps (shale gas) has a much greater impact on the increase of the greenhouse effect than CO2 gas

Construction in Klaipėda

Fortum in Baltic region

Competencies of Fortum

• Combined Heat and Power (CHP)• Energy markets

• In the Baltic countries Fortum focuses on the development of CHPs with local fuels, including waste

BALTIC COUNTRIES

Power generation 0.4 TWhHeat sales 1.1 TWhDistribution customers ~24,000

Consumers: industry, public buildings, population

Energy sales in Estoniaheat 1.1 TWhgas 20 GWhelectrical power 140 Gwh

Energy sales in Lithuaniaheat 63 GWhgas 40 GWhbiomass fuel (wood) 50 GWh Staff : ~ 93

Energy sales in Latviaheat 0.2 TWhelectrical power 32 GWh Staff: ~103

Fortum’s Current Operations in Baltic region

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