Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Investor Day (September 2010)
9 slides from Fortum Oyj's investor day presentation, Sep 16, 2010
Slide 1: Fortum's heat business and CHP
Fortum’s heat business and CHP Jouni Haikarainen 16 September 2010
Slide 2: Fortum is the world's 4th largest heat producer with operations in 8 countries
Fortum is the world’s 4th largest heat producer with operations in 8 countries • Heat sales 50,2 TWh and electricity sales 20,4 TWh (2009) – CHP/condensing production in over 30 plants – Small scale heat production in over 700 heat-only boilers – Operations in over 200 district heating networks loca
Slide 3: Heat Division operates in the Nordic and Baltic Rim countries
Heat Division operates in the Nordic and Baltic Rim countries • Total sales: Heat and steam sales, TWh, 2009 8,0 – ca. 25 TWh heat Electricity sales, TWh 2009 9.8 2.5 – 5 TWh electricity 1.8 0.1 1.3 • Production capacity: 0.1 – 23 CHP plants 3.7 3787 – 700 heating plants and stations 0.0 2552 1055 2
Slide 4: Overview of Heat's main CHP plants
Overview of Heat’s main CHP plants Existing Main CHP's in Heat Fuels Electricity Heat Division MW MW CHP Suomenoja, Finland Gas, Coal 370 565 CHP Naantali, Finland Coal, biomass 325 430 CHP Stockholm City, Sweden Coal 125 295 CHP Högdalen, Stockholm, Sweden Wase, biofuel 70 150 CHP Brista, Stockholm
Slide 5: Combined heat and production and district heating is extremely energy efficient
Combined heat and production and district heating is extremely energy efficient • Very high fuel efficiency, 90% or more • Small scale production enables local fuels (bio, waste, peat) with lower price volatility • Competitiveness of CHP increases with higher coal and gas prices, and with the need t
Slide 6: Benefits of CHP are undisputable – offering untapped business opportunities
Benefits of CHP are undisputable – offering untapped business opportunities • High fuel efficiency • High fuel flexibility • A key solution in meeting increasing demand for heat and power in urban environments • Politically uncontroversial solution for sustainability • Subsidies from power productio
Slide 7: Value creation logic based on the cost of alternative supply options
Value creation logic based on the cost of alternative Value creation logic supply options Condensing Alternative CHP thermal heat supply power Power Heat Power Heat Production cost > Production Cost If electricity price is set by condensing thermal power plant new entry cost and heat is priced accor
Slide 8: District heating still highly competitive
District heating still highly competitive Total costs, block of flats Customer benefits 150,00 • Most competitive price • Highly comfortable and reliable • Quality assurance • Equipment inspections 100,00 • Technical support 24 / 7 • Constant local presence €/MWh • Automated metering and online 50,0
Slide 9: Thank You!
Thank You! 9