Fortum Oyj

Type	Julkinen osakeyhtiö (OMX: FUM1V)
Industry	Electric utility
Founded	1998
Headquarters	Espoo, Finland
Key people	Sari Baldauf (Chairman), Tapio Kuula (President and CEO)
Products	Electricity generation and distribution
Revenue	€6.296 billion (2010)[1]
Operating income	€1.708 billion (2010)[1]
Profit	€1.300 billion (2010)[1]
Total assets	€21.96 billion (end 2010)[1]
Total equity	€8.742 billion (end 2010)[1]
Employees	10,585 (end 2010)[1]
Website	www.fortum.com

Fortum Oyj is a Finnish electric utilities company, which focuses on the Nordic and Baltic countries, Poland and the north-west of Russia. After acquisition of Russian energy company TGC-10 in year 2008, Western Siberia has become an important operating area for Fortum. The head of the company is Tapio Kuula, President and CEO.^[2] Fortum operates and maintains power plants and provides other energy related services. The company's main product is the production and distribution of electricity, heat and steam.

  History

  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 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.^[3] 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.

Fortum is listed on NASDAQ OMX Helsinki stock exchange and is currently the only Nordic energy company registered on the Dow Jones Sustainability Index. (DJSI)

  Energy production

  Hydroelectric power

  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

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).^[4]

Fortum owns 25.7% of Russian nuclear power company Polyarnye Zori as partner of TGK-1.^[5]

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

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.

  Environment

Fortum has the biggest market share of ecolabeled electricity in Finland.^[6] 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.^[7] According to Fortum's own publications it is also the largest seller of Bra Miljöval certified energy in Sweden.^[8]

  Research and development – R&D

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”^[9] 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

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

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 in the Bothnia gulf In Finland and Sweden every year.^[10] The company also participates in re-populating white fishes, pikeperches and Touladi in regulated rivers and lakes used for hydroelectric power production.

  Fondation and partners

The Fortum Fondation get involved in causes such as protection of childhood, sport, environmental care and research support. Fortum also worked with Greenpeace.

  References

  External links

• Official website

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