Fortum Oyj is a Finnish state-owned energy company located in Espoo, Finland. In addition to Finland, it focuses on Germany and other countries in Central Europe, Great Britain, Russia and the Nordic region.[1] Fortum operates power plants, including co-generation plants, and generates and sells electricity and heat. The company also sells waste services such as recycling, reutilisation, final disposal solutions and soil remediation and environmental constructions services, and other energy-related services and products e.g. consultancy services for power plants and electric vehicle charging. Fortum is listed on the NASDAQ OMX Helsinki stock exchange.
In 2020 Fortum was the biggest company in Finland by its revenue.[2] The majority of its income came from Uniper[3] that became Fortum’s subsidiary in March 2020.[4] Uniper was nationalised by Germany on the 21 September 2022 for 8 billion euros. [5] Fortum is Europe’s third-largest producer of carbon-free electricity, Europe’s second-largest producer of nuclear power[6] and one of the largest gas suppliers.[7]
History
Imatran Voima (1932–1997)
The predecessor of Fortum was Imatran Voima (IVO), which was founded in 1932 to operate the Imatrankoski hydroelectric power plant in Imatra.[8]
The construction of the Imatra power plant began already in 1922 as well as the power lines from Imatra to Helsinki and the power plant was opened in May 1929.[8] Finnish Government made a decision to establish Imatran Voima Osakeyhtiö (IVO) in May 1932.[8]
Imatran Voima acquired and built a number of other power plants, such as the largest hydroelectric power plants along the Oulujoki river, Ingå and Naantali coal-fired powerplants and the Loviisa nuclear power plant.[citation needed]
In 1997, a merger agreement was made between Neste and IVO.[8]
1998–2010
Fortum Corporation was founded in 1998. It was created from the merging of Imatran Voima and Neste Oy, the Finnish national oil company.[9]
In 2003, Fortum bought parts of Fredrikstad Energi and Fredrikstad Energi Nett in a swap deal with E.ON.[10]
In 2005 most of Neste’s assets were divested into a separate stock-listed company Neste Oil.[11]
In 2007, Fortum acquired 25.66% stake in TGK-1, operating in northwest Russia.[12] In 2008, Fortum privatized the natural gas, power and heat generation company TGK-10 (now: OAO Fortum), operating in central and northern Russia.[13]
2011–current
In 2011, Fortum sold its 25% stake in the Finnish transmission system operator Fingrid.[14] In December 2013 Fortum announced the sale of its distribution network in Finland to Suomi Power Networks (later named Caruna), owned by First State Investments (40%), Borealis Infrastructure (40%), Keva (12,5%) and LähiTapiola (7,5%).[15]
In 2012, Fortum shared the number one position in the Carbon Disclosure Project’s Nordic climate index.[16]
In 2013, Fortum opened two new CHP utilities using waste as a fuel in Klaipėda, Lithuania,[17] and Brista [sv], Sweden[18] as well as new biomass-fuelled CHP plants in Jelgava, Latvia,[19] and Järvenpää, Finland.[20] In June, Fortum acquired a 5 MW solar power plant in the state of Rajasthan in India.[21] In September Fortum signed an agreement with Rosatom and British Rolls-Royce Engines to develop nuclear power.[22]
In 2014 Fortum sold its Norwegian electricity distribution network and also its stakes in Fredrikstad Energi and Fredrikstad Energi Nett to the Hafslund Group. The heat business was sold to iCON Infrastructure Partners II, L.P. fund.[23] Since 2015 the electrical distribution network in Sweden is owned by Ellevio.[citation needed]
In 2015 Fortum connected its first greenfield solar park, under the Jawaharlal Nehru National Solar Mission (JNNSM) Phase II initiative, in Madhya Pradesh.[24][25]
In 2015, Fortum completed the divestment of its electricity distribution network in Sweden, thus completing the divestment of electricity distribution business.[citation needed] In 2016, Fortum acquired Grupa DUON S.A, an electricity and gas sales company in Poland, and Ekokem Corporation, a leading Nordic circular economy company specialised in material and waste recycling, final disposal solutions, soil remediation and environmental construction.[citation needed]
In 2017, the 100 MW plant in Pavagada solar park was connected to the grid. It was the first of a series of planned gigawatt-scale plants facilitated by reverse auctions in India.[26] In September, Fortum announced it would buy E.ON’s 47% stake in German power company Uniper.[27] Fortum increased its stake to 75% in spring 2020.[28] Uniper mainly uses oil, natural gas and coal to supply electricity.[29]
In 2020 Fortum and Kværner informed that they would cooperate on a Carbon capture and storage project for waste incineration at Klemetsrud energigjenvinningsanlegg.[30]
In 2021 Fortum sold its business in Estonia, Latvia and Lithuania to Partners Group.[31]