Fortum Considers Possible Strategic Options for Its District Heating Businesses in Joensuu, Finland and in Parnu and Tartu, Estonia

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Fortum Considers Possible Strategic Options for Its District Heating Businesses in Joensuu, Finland and in Parnu and Tartu, Estonia

By District Energy posted 06-26-2019 11:40

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Summary

Fortum has decided to assess strategic options, including possible divestment, of its district heating and cooling businesses in Joensuu, Finland as well as in Pärnu (100% ownership) and Tartu (60% ownership), Estonia. In line with its strategy, Fortum continuously reviews its businesses to optimise its portfolio for value creation.

Based on initial assessments, the district heating and cooling businesses in Joensuu and Estonia have been identified as operations that potentially could benefit from a different ownership structure. These business operations are entering into a more stable phase as measures to improve operational efficiency and the transformation to lower carbon intensity has largely been done.

In 2018, Fortum produced approximately 550 GWh of heat and approximately 240 GWh of power in Joensuu. The business generates an EBITDA of approximately EUR 20 million and currently employs less than 10 Fortum employees as operation and maintenance services are sourced externally.