This document provides information about Fortum, a sustainable energy company, and its operations in Lithuania. It discusses Fortum's mission of sustainable business and social responsibility. It also provides statistics about Lithuania's energy sector, municipal waste management techniques, and Fortum's investments and plants in Lithuania. Specifically, it summarizes Fortum's new waste-to-energy plant in Klaipeda, the largest greenfield investment in Lithuania, which will produce both heat and electricity from burning municipal and industrial waste.

2. Facts and figures

3. Sustainable business and responsibility
3
• Fortum‘s mission is based on sustainable business
• Sustainability means economic and social
responsibility in every-day activities of a company
• Honesty, respect and creativity is the basis of
Fortum‘s activities
• Fortum continuously strives to:
− develop sustainable energy projects
− contribute to the reduction of carbon dioxide emissions
− be a socially responsible company
The main objective is
to produce energy
improving the quality of
life of current and future
generations.

4. Figures about Lithuania
in 2012
4
• Population - 3 million
• Main energy projects:
– Nuclear power plant
– LNG terminal (under construction)
– Electrical connections with Sweden (under construction) and Poland
– Gas connection with Poland
– Biofuel projects
Prices:
– Electricity .... 46,2 EUR/MWh
– Gas ............ 43,97 EUR/m³
– Biofuel ........19,85 EUR/MWh
Demand:
– Electricity ..... 10.6 TWh
– Gas ............... 3.3 mlrd. m³
– Heat (27,2% from RES) 9.01 TWh

5. Fortum in Lithuania
5
Fortum Klaipėda
• Established in.......................2007
• Investments…....130 million EUR
Fortum Švenčionių energija
• Established in….................2001
• Investments…......5 million EUR
Fortum Joniškio energija
• Established in….....................2000
• Investments….......3,9 million EUR
Fortum Ekošiluma
• Established in…............... 2003
• Investments….....1 million EUR

6. Waste management

7. Swedish example
7
Source: Swedish Waste Management and Recycling Association
1975
1985
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
0
10
20
30
40
50
60
70
80
90
100
Land fills
Energy from waste
Biological treatment
Recycled material

8. Municipal waste amounts
kg per capita in the EU countries in 2010
8
502
381
315
0
100
200
300
400
500
600
700
800

9. Collected amount of municipal waste
in thousands of tons in major cities of Lithuania in 2010
9
199.5
141.3
76.3
57.8
44.7
Vilnius Kaunas Klaipėda Panevėžys Šiauliai

10. Municipal waste management
in EU countries in 2010
10
0%
20%
40%
60%
80%
100%
Disposal of municipal waste in landfills Recycling Composting Incineration

11. Municipal waste management
in the European Union
11
68
57 57
38
15
16 16
22
11
16 16
25
6 11 11 15
1995 2000 2005 2010
Composting
Recycling
Incineration
Landfilling

12. Use of secondary raw materials
in Lithuania in 2010
12
577,000 tons
59,000 tons
105,000 tons
16,000 tons
27,000 tons
Metal
Glass
Paper
Tires
Plastics

13. Municipal waste management techniques
in Lithuania in 2010
13
94 %
2%
4%
Disposal of municipal waste in landfills
Composting
Recycling

14. Municipal waste management techniques
in Sweden in 2010
14
1%
14%
49%
36%
Disposal of municipal waste in landfills
Composting
Incineration
Recycling

15. Survey
how Lithuanians rate waste incineration as a source of energy
15
14%
68%
18%
Negatively
Positively
No opinion

16. The Plant

17. Three challenges
17
• Municipality:
– new standards and laws
– long procedures and fear of responsibility
• Society:
– fear of pollution
– impact of politicians
– no strong communities
– distrust of local authorities
• Transparency:
– untransparent media and transparent company
– overall distrust

18. Figures
18
• 95% of shares – UAB Fortum Heat Lietuva
• 5% of shares – AB Klaipėdos energija
• 130 million EUR – value of the project
• 50 МW – heat capacity
• 15 МW – additional heat capacity from smoke condenser during
winter time
• 20 MW – electric capacity
• 400 GWh – annual production of heat
• 140 GWh – annual production of electricity
• 40% of heat amount necessary for Klaipėda heat consumers

19. Facts
19
• The plant will burn up to 245 thousand tons of municipal and
industrial waste and biofuel (wood chips)
• The best available technologies used in the plant ensure the
best method of waste incineration
• All heat produced is transmitted to the Klaipėda city district
heating system, while electricity is supplied to common
electricity network
• The new Klaipėda plant, where waste will be used as fuel, is
the first object of such type in Baltic countries
• The company employs 35 professionals
• More than 30 service agreements

20. Emissions
September, %
20
41
80
7
14
7 6
100 100 100 100 100 100
Carbon
monoxide
Nitrogen
oxides
Sulphur
dioxide
Ammonia Total organic
carbon
Particles
Average value of the indicator Norm

21. Benefits to Klaipėda region and Lithuania
21
• Decreased dependence on imported fuels
• More stable heat prices
• Reduced costs for building new landfills
• 4 – 5 times smaller amounts of waste disposed in
landfills
• Reduced environmental pollution
• Competition of heat suppliers
• One of the largest greenfield investment in Lithuania
• About 35 million EUR paid to local companies during the
construction process
• Plant is in line with National Energy Strategy

22. Thank You for Your attention!
Questions?