Fortum extends its district heating network in Tartu, Estonia
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
Fortum owns two CHP plants and district heating networks in the Estonian cities
Fortum's purpose is to create energy that improves life for present and future
Fortum's operations focus on the Nordic countries, Russia, Poland and the
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