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Press release

Fortum and the Chelyabinsk Region Administration initiate large-scale cooperation to improve energy efficiency

29 January 2010, 09:06 EET

Fortum Corporation Press release 29 January 2010

Fortum and the Chelyabinsk Region Administration initiate large-scale           
cooperation to improve energy efficiency                                        

Fortum's Russian subsidiary OAO Fortum and the Chelyabinsk Region Administration
have agreed on extensive cooperation in the area of energy efficiency. According
to the Memorandum of Intentions signed in the course of the Russian Energy      
Minister Sergey Shmatko's visit to Finland on 28 January, the parties intend to 
implement a number of energy efficiency measures during 2010-2012 in the        
Chelyabinsk region. The measures aim at reducing environmental impacts and
promoting efficient use of resources. 

The largest operation in the programme is the automation and upgrade of the     
Chelyabinsk district heating system, which will reduce energy losses in the area
by over 30% as well as significantly decrease fuel consumption and emissions. A 
project this size is unique in Russia and will be partly funded by raising the  
district heating tariffs controlled by the region's administration. Once        
completed, consumers will be provided with uninterrupted and more affordable    
supply of district heat.                                                        

“During 2009-2012, we will invest RUB 3 billion (approximately EUR 70 million)  
in improving energy efficiency. An additional RUB 1.5 billion (approximately EUR
35 million) for the implementation of the programme will be collected from      
district heating tariffs. We greatly appreciate the support of Chelyabinsk      
Administration and Regional Government who directly participated in the project 
development and kick off,” says Alexander Chuvaev, OAO Fortum General Director. 

ОАО Fortum is also planning to implement a number of technical improvements at  
the power plants located in the Chelyabinsk region in order to increase the     
efficiency of heat and electricity production. The company has also launched a  
sustainability programme aiming to reduce environmental impacts both around the 
power plants and in the region as a whole. 	                                    

According to Minister of Industry of Chelyabinsk region Vladimir Elistratov, the
regional authorities intend to support the development and implementation of    
energy saving and energy efficiency improvement programmes. “For its part, the  
Government of Chelyabinsk region will take all actions required to further      
encourage such initiatives,” he says.                                           

Fortum Corporation                                                              
Corporate Communications                                                        

Pictures from the visit to the Suomenoja power plant and the occasion where     
Alexander Chuvaev and Vladimir Elistratov signed the memorandum.                

http://media.digtator.fi/digtator/tmp/653f1d4367172bd07baba94af5b26200/preview.h
tml                                                                             

The link is valid until 28.02.2010.                                             

Additional information:                                                         
Marina Balabanova, Vice President, Government Relations and Communications,     
Fortum Russia Division, Tel. +79 226 999 721                                    

OAO Fortum is a territorial generating company operating in the Urals and West  
Siberia region. The total installed capacity is 3,000 MW power and 15,800 MW    
heat with an annual production of 18 TWh power and 27 TWh heat. The company has 
an extensive investment plan to further increase its power production capacity  
by 2,300 MW. The number of employees is about 5,000.