Fortum releases 2013 financial results, invests in new CHP plant

By Erin Voegele | February 14, 2014

Finland-based Fortum has released financial results for the fourth quarter of last year and announced a new investment in a multi-fueled power plant.

The company reported a comparable operating project of €493 million ($673.82 million) for the quarter, down 17 percent from the same period of 2012. Fortum also announced an operating profit of €574 million, of which €32 million relates to items affecting comparability.

For the full 2013 fiscal year, the company has reported a comparable operating profit of €1.607 billion, down 8 percent from the previous year. Operating profit for 2013 was €1.712 billion, of which €105 million relates to items affecting comparability. Earnings per share were €1.35.

Within its financial report, Fortum highlighted several 2013 achievements, including the commissioning of new biomass-fired combined-heat-and-power plants (CHP) in Jelgava, Latvia, and Järvenpää, Finland. The Jelgava plant burns wood chips to produce approximately 23 megawatts (MW) of electricity and 45 MW of heat, enough to cover approximately 85 percent of the city’s district heating demand. The Järvenpää plant has the capacity to produce 23 MW of electricity and 63 MW of heat. The company also placed into service a waste-to-energy CHP plant in Klaipeda, Lithuania, that produces 20 MW of electricity and 60 MW of heat, and began test runs at a facility in Brista, Sweden, that has the capacity to produce 57 MW of heat and 20 MW of electricity.

Also in 2013, Fortum commissioned a bio-oil production facility integrated with a CHP plant in Joensuu, Finland. The facility produces bio-oil from woody biomass. The project can be used to heat plants or in industrial stem production as a replacement for heavy and light fuel oil. In October, Fortum signed an agreement to supply bio-oil supplied at the facility to Savon Voima, which will use the fuel in a district heating facility. Fortum also uses the bio-oil to heats its plant sin Joensuu, Vermo and Espoo.

On Feb. 10, Fortum announced it is committing €40 million to support a €260 million plant in Naantail, Finland, that is under development by Turun Seudun Energiantuotanto Oy. The proposed CHP plant will have a capacity of 142 MW of electricity and 244 MW of heat. It will be capable of taking in biomass, coal and high-quality recycled waste as fuel, but can be fueled by biomass alone. According to Fortum, biomass fuel for the facility will consist primarily of locally sourced wood chips. The plant is scheduled operational in the fall of 2017.

“By investing in a new power plant in Naantali, we are pursuing growth in energy-efficient combined heat and power production in line with our strategy. The fact that the new power plant aims to utilize as much domestic biomass as possible also makes the new project an interesting one for Fortum,” said Jouni Haikarainen vice president of Fortum’s heat division.