Russia approves three Fortum power plant units as Joint Implementation projects
The Russian Ministry for Economic Development has approved three of OAO Fortum's power plant units as Joint Implementation projects: one Chelyabinsk CHP-3 unit and two Nyagan GRES units. All of these units are part of Fortum’s extensive investment programme. The units, which have a total capacity of 1,052 MW electricity, are estimated to reduce greenhouse gas emissions by a total of about 1.4 million tonnes of carbon dioxide by the end of 2012.
In addition, two enlargement projects (Pervomayskaya CHP-14 and Yuzhnaya CHP-22) of TGC-1 in St. Petersburg, Russia, were approved as Joint Implementation projects. Fortum has a 25% shareholding in OAO TGC-1.
The Joint Implementation projects, as defined in the Kyoto Protocol, will reduce carbon dioxide (CO2) emissions in Russia, and Fortum will be able to use the related emission reduction units in the EU's emissions trading scheme or sell them on the market. The conditions of transferring emission reduction units from Russia are still pending.
“By constructing modern, environmentally benign and energy-efficient energy production capacity in Russia, Fortum is contributing to the global reduction of greenhouse gas emissions. The Kyoto mechanisms, together with emissions trading, are an important tool in our efforts to combat climate change. We are delighted that the Russian government is recognising the endeavour by approving again Fortum's new capacities in the country as Joint Implementation projects under the Kyoto Protocol,” says Fortum's President and CEO Tapio Kuula.
Earlier, in December 2010, the 190-MWe unit built by Fortum at Tyumen CHP-1 and the reconstruction of OAO TGC-1’s Nevsky hydropower plant had been approved as Joint Implementation projects.
Fortum's EUR 2.3 billion extensive investment programme in Russia aims at a capacity increase of approximately 2,400 MW by the end of 2014. Fortum has already commissioned three power plant units: Tyumen CHP-1, Chelyabinsk CHP-3 and Tobolsk CHP. Fortum will launch five new combined-cycle gas turbine units at its power plants located in the Urals and Western Siberia regions according to the ongoing investment programme.
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 2011, Fortum’s sales totalled EUR 6.2 billion and comparable operating profit was EUR 1.8 billion. The Group employs approximately 10,800 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki.
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