September 30, 2008

Joint Implementation in TGC-10 Yields 1.5 Million Tonnes of CO2 Emission Reduction Units

ESPOO, Finland, September 30 /PRNewswire-FirstCall/ -- Fortum will gain approximately 1.5 million tonnes of emission reduction units (ERU) from Joint Implementation projects conducted at the Russian Territorial Generating Company No. 10 (TGC-10). The projects TGC-10 will implement include construction of new power generation facilities in the Tyumen and Chelyabinsk areas, and they will be conducted during the Kyoto Period (2008-2012) of the European Emissions Trading Scheme.

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Fortum can use the received ERUs to cover part of its own emissions in the EU area once these projects are completed and their emission reduction has been verified. The ERUs will cover approximately 14% of Fortum's annual CO2 emissions in the EU area and their value is approximately EUR 30 million based on the current market price of Certified Emission Reductions originating from developing countries. Energy Carbon Project (ECP) will act as the consultant responsible for developing the Joint Implementation projects.

"The Kyoto mechanism enables companies to reduce emissions where it is most economical and efficient. In the EU, Fortum's power generation is already approximately 90% CO2-free. In Russia, the average age of power generation capacity is rather high. Construction of new modern power generation facilities with low specific emissions leads to lower emissions in comparison to the use of old inefficient capacity," says Tapio Kuula, Senior Vice President at Fortum.

TGC-10 is a territorial generating company operating in the Urals and Western Siberia regions. The company was founded in 2006 as part of the Russian power sector reform. The total installed capacity of TGC-10 and its affiliates is 3,000 MW of electricity and 15,800 MW of heat with annual production of 18 TWh of electricity and 27 of TWh heat. The company has an extensive investment plan to further increase its electricity production capacity with 2,300 MW by 2013.

   Fortum Corporation   Maria Romantschuk   SVP, Communications    Further information:   Pirja Heiskanen, Vice President,   TGC-10, Production Portfolio Management and Trading, +358-50-45-36314  


Fortum Corporation

CONTACT: Further information: Pirja Heiskanen, Vice President, TGC-10,Production Portfolio Management and Trading, +358-50-45-36314