Espoo, Finland, 2013-06-26 14:00 CEST (GLOBE NEWSWIRE) -- PRESS RELEASE 26 June 2013
Fortum has agreed to acquire district heat operations in the city of Tartu in Estonia from the Estonian district heat company Eraküte.
The district heating network accounts for approximately 20% of the whole Tartu network and is the fastest growing area in the city. In 2012, heat sales in the area amounted to approximately 92 gigawatt-hours (GWh). Heat is produced in three boiler houses using local biomass and gas as fuels. After this acquisition Fortum owns the whole district heating network of Tartu.
Later on, Fortum plans to connect the acquired network area to Fortum's current network that is supplied by the company's Tartu combined heat and power (CHP) plant that uses local biomass and peat as fuels. Connecting the new district heating network to Fortum's network increases the usage of biofuels, decreases CO2 emissions and improves the efficiency of district heat production in Tartu.
"Thanks to high efficiency and usage of biofuels, we are lowering CO2 emissions in Estonia. Furthermore, for the same reason, we have managed to keep our district heating prices in Tartu at a very competitive level," says Margo Külaots, head of Fortum operations in Estonia. "We are very pleased to welcome the residential and business customers to our network," he continues.
The purchase price is approximately EUR 7 million. The transaction is planned to be completed in August and is pending on the Estonian competition authority's approval.
Fortum owns two CHP plants and district heating networks in the Estonian cities of Pärnu and Tartu. The total production capacity of both plants is at the level of 49 megawatts (MW) electricity and 100 MW heat. The annual sales volumes amount to approximately 600 GWh of heat and 340 GWh of electricity. Both plants are highly efficient and use mainly local biofuels reducing the environmental impacts of energy production and offering a competitive price for the customers.
Margo Külaots, Head of Fortum operations in Estonia, +372 505 2986
Fortum's purpose is to create energy that improves life for present and future generations. We provide sustainable solutions that fulfil the needs for low emissions, resource efficiency and energy security, and deliver excellent value to our shareholders. Our activities cover the generation, distribution and sales of electricity and heat as well as related expert services.
Fortum's operations focus on the Nordic countries, Russia, Poland and the Baltics. In the future, the integrating European and fast-growing Asian energy markets provide additional growth opportunities. In 2012, Fortum’s sales totalled EUR 6.2 billion and comparable operating profit was EUR 1.7 billion. We employ approximately 10,400 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki.
Further information: www.fortum.com