Fortum s international ambitions with CCS. 5 June 2018 Breakfast seminar / Bellona

Transcription

1 Fortum s international ambitions with CCS 5 June 2018 Breakfast seminar / Bellona

2 Fortum in brief Our core Hydro and nuclear Combined heat and power production Circular economy Energy-related products and expert services Group annual sales some EUR 5 bn, with ~19% EBIT margin* 9,000 professionals in the Nordics, the Baltics, Russia, Poland and India We are the largest electricity retailer in the Nordics with 2.4 million customers. And one of the leading heat producers globally 2/3 of our power production is hydro and nuclear 96 % of our electricity production is CO 2 free in Europe, 62% in all operations (2016) * For the period 4/2017-3/2018, comparable operating profit

3 Climate change and resource efficiency Active customers The global megatrends affecting our industry Urbanisation Digitalisation, new technologies

4 We are putting our growth strategy to work Strategic focus areas 4 Bellona breakfast seminar

5 Delivering on our growth strategy 180 MW wind power in Norway, 35 MW in Russia and a 1,000 MW wind JV in Russia International growth for Nordic market leader Charge & Drive Agreement with E.ON Uniper public takeover offer Chelyabinsk GRES unit 3 started commercial operation 170 MW solar power in India, 35 MW in Russia Hafslund restructuring

6 Through City Solutions division, Fortum is a forerunner in district heating and waste management 6 Bio-CHP Joensuu Woodchips, peat + pyrolysis plant Järvenpää Woodchips, horse manure & waste Jelgava Woodchips Pärnu Woodchip Tartu Woodchips & peat Värtan KVV8, Brista 1 Woodchips Hässelby Wood pellets Naantali Woodchips & coal Recycling & Waste Riihimäki Hazardous, municipal & industrial/commercial waste, material recovery Kumla Hazardous & industrial/commercial waste Nyborg Hazardous waste Klaipėda Municipal waste, RDF & woodchips Zabrze Waste & coal New unit ready 2018 Klemetsrud Municipal & industrial/commercial waste RDF Högdalen Municipal & industrial/commercial waste RDF Brista 2 Municipal & industrial/commercial waste RDF Several other operating locations in the Nordics Coal/gas & multi-fuel CHP Espoo Coal & natural gas Bytom Coal Czestochowa Coal & woodchips Värtan, old units Coal & oil Co-owned and consolidated companies Associated companies RDF = Refuse Derived Fuel 1. Revenues and volumes from associated companies excluded City Solutions revenue split (total ~1bn 1 ) Heat sales Power sales Waste gate fees & waste management services >1,500 kton >1,100 kton New waste-to-energy plant being constructed in Lithuania Projects under development in the UK and Indonesia Environmental const. enext Other incoming waste volume use of biomass fuels Esbjerg CHP plant locations today District heat supply/networks w/o own production Gävle Salo Riihimäki Klemetsrud Turku Kouvola Järvenpää Brista** Naantali** Espoo Bålsta Värtan** Kumla Hässelby** Pärnu Tartu Högdalen** Göteborg Aarhus Nyborg*** Copenhagen Wroclaw Zabrze Other waste management locations Sundsvall Kiruna Pori Klaipėda Plock Jelgava Częstochowa Bytom Ylivieska Oulu Valkeakoski Kuopio Joensuu Jämsä

7 Temperature BC 2100 AD Temperature anomaly, C 3 Forecast 2100 AD Bellona breakfast seminar Year (BC / AD) Rough Fortum illustration based on reconstruction of various external studies and forecasts; Shakun et al. (2012); Marcott et al. (2013); CMIP5 A1B; HadCRUT4

8 Fossil fuel consumption in Europe needs to decrease drastically to reach 2050 targets MtCO 2 (eqv.) Greenhouse gas emissions Coal (minimum targets from 1990 level) - 40 % Oil Gas - 60 % Other 0-80 % (2 C target level) - 95 % TODAY Bellona breakfast seminar Source: IEA World Energy Outlook 2017, Eurostat

9 Sustainable material production and de-carbonization of energy system are needed to reach +2-degree path Global warming challenge Decarbonisation of energy system (power, heat, transportation) Sustainable waste management and material production 4 ⁰C 3 ⁰C 2 ⁰C Massive electrification Solar and Wind mainstream Electric vehicles mainstream Bio in power and heat Power to Hydrogen Biobased traffic fuels CCS Bio- Products and materials Landfilling Value enhancing recycling Increasing material recycling Waste to Energy mainstream Chemical recycling 9 Bellona breakfast seminar

10 Asia s waste growth requires new capacity in all approaches; Europe s volumes are shifting towards WtE and recycling Global MSW is growing Global MSW growth requires new capacity in all approaches Volume (Mt) Global MSW +5% Asia Pacific Europe Rest of world CAGR 7% 3% 5% Volume (Mt) Global MSW +5% Recycling WtE Landfill/other CAGR 7% 5% 5% Sources: BIS Research - Global Solid Waste Management Market Analysis & Forecast: , Sunter Jakarta Report Sources: Fortum Analysis, World Bank 2012, VisionGain WtE Market Outlook Transition to circular economy and recycling will need waste-to-energy CCS is an essential part of the toolbox to fight climate change with many possible applications Volume (Mt) European MSW market size by services European MSW +3% Recycling WtE Landfill/other Sources: Eurostat waste statistics, BIS Research - Global Solid Waste Management Market Analysis & Forecast: CAGR 9% 4% -4% 10 Bellona breakfast seminar