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Eastern European Markets

PRESS RELEASE
June the 16th, 2011

Fortum invests in new biofuel-fired CHP plants
in Järvenpää, Finland, and Jelgava, Latvia

Fortum invests in two new biofuel-fired combined heat and power (CHP) plants in Järvenpää, Finland, and Jelgava, Latvia. The combined investments total around EUR 160 million and the plants are estimated to start commercial operation in 2013. The environmentally-benign plant investments reduce CO2 emissions and increase the use of local fuels in both Järvenpää and Jelgava regions. The simultaneous construction of the two CHP plants also targets significant cost savings.

The new biofuel-fired plant, which will be constructed in Järvenpää, replaces current natural gas and heavy fuel oil heat production. The biofuels used in Järvenpää plant are mainly wood chips and by-products of the forest industry, such as sawdust and bark, and in addition some peat. The annual production of the plant is about 280 GWh of heat and about 130 GWh of electricity. The new plant will be connected to the existing Tuusula and Järvenpää district heat network, which will be combined into one network as part of the current investment.

A similar biofuel-fired CHP plant will be built in Latvia's fourth largest city, Jelgava. The plant provides heat to the district heat network, which has been managed by Fortum since 2008. The Jelgava CHP plant replaces heat provided by gas, and its annual production is approximately 230 GWh of heat and 110 GWh of electricity. The Jelgava plant is the first biofuel plant of this scale in Latvia.

About Fortum

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 sale
of electricity and heat as well as related expert services.

Fortum's operations focus on the Nordic countries, Russia and Baltic Rim area.
In the future, the integrating European and fast-growing Asian energy markets
provide additional growth opportunities. In 2010, Fortum's sales totalled EUR
6.3 billion and comparable operating profit was EUR 1.8 billion. We employ
approximately 10,500 people. Fortum's shares are quoted on NASDAQ OMX Helsinki.

Further information:
Jouni Haikarainen, Vice President
Fortum Heat Division Finland
tel. +358 40709 5690
Jaakko Vähä-Piikkiö, Fortum Heat Division
Vice President of Baltic Region,
tel. +358 50 453 2009

www.fortum.com


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