Fortum Klaipėda: huge step towards independence Vitalijus Žuta Managing Director of Fortum Heat Lietuva

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
4
• Population - 3 mln.
• The 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 – 9.01TWh/ 27,2% from
RES

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

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 do you rate waste incineration as a source of energy?
15
14%
68%
18%
Negatively
Positively
I don't have any opinion

16. The Klaipeda Plant

17. Three challenges
17
• Municipality
• Society
• Transparency

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
the winter time
• 20 MW – electric capacity
• 400 GWh – annual production of heat energy
• 140 GWh – annual production of electricity
• 40% of heat amount necessary for Klaipėda heat consumers

19. Facts
19
• The plant burn up to 245 thousand tons of municipal and
industrial waste and biofuel (wood chips)
• The best available technologies (BAT)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 the Baltic countries
• The company employs 35 professionals
• More 30 service agreements

20. Emissions
January, %
20
31
82
2
8 10 10
100 100 100 100 100 100
Carbon
monoxide
Nitrogen
oxides
Sulphur
dioxide
Ammonia Total organic
carbon
Particles
Average value of the indicator Norm

21. Waste composition
Before sorting
21
Waste Percent
Food waste 12
Plastic 11
Plant waste 8
Glass 7
Paper 7
Fabrics 5
Metal 2
Wood 1
Other waste 47

22. Benefits to Klaipėda region and Lithuania
22
• Decreased dependence on imported fuels
• More stable heat prices
• Reduced costs for building new landfills
• 4 – 5 times smaller amounts of waste
disposed in landfill
• Reduced environmental pollution
• Competition of heat suppliers
• One of the largest “green field” investment in
Lithuania
• About 35 MEUR civil and constructing works
was done by local companies

23. Kaunas Project: Description
• UAB Fortum Heat Lietuva is engaged in the development of the project “Kaunas
CHP Plant”, the estimated value of which is about EUR 155 million
• The preliminary place of construction of the planned Kaunas CHP plant is Kaunas
Free Economic Zone.
• The total capacity of the planned CHP plant is 100MW, of which thermal energy
would account for 60MW and electricity - for 32MW
• All the heat produced, about 560GWh, will be supplied to heat consumers of the
city and district of Kaunas; electricity, about 250GWh, will be supplied to the public
electricity grid
• The company plans to employ about 40 people
23

24. Kaunas Project: Benefits
• Dependence on imported fuel (gas) will decline in the supply of heat to the city and
district of Kaunas, since a significant share of heat will be generated in this plant
• Increase in price of heat produced out of natural gas would be slowed down and
preconditions for the stabilization of a market price would be created
• Costs of the construction of new landfills and operation of the existing ones would
decrease, as when using waste in energy production, the amount thereof
decreases 4-5 times
• Impact on the formation of greenhouse effect decreases, since emitted landfill
gases (methane) have a much greater influence on increasing greenhouse effect
than CO2 gas emitted during waste incineration
• New jobs for production, handling and transportation of biomass would be created
• Local construction companies would take part in the construction of the plant
24

25. Kaunas Project: Developments
• Study of fuel supply has been performed in this project implementation stage
• Project Development Plan and Strategic Environmental Impact Assessment of the
solutions thereof has been approved
• Environmental Impact Assessment of the planned economic activity is being
carried out
• Construction is scheduled to start in Q1 2015
• Commissioning in Q1 2017
• There are more than 400 plants of such type operating in Europe: about 130 in
France, 70 in Germany, 30 in Sweden
25

26. Thank You for Your attention!