Fortum, operation and compliance with international environment standard - Nordic perspective City Solutions Pasi Mikkonen, Kalle-Erkki Penttilä Fortum in short Power generation Heat Electricity sales Nordic countries Power generation Heat sales Electricity customers 46.2 TWh 3.7 TWh 1.3 million Key figures 2016 Sales EUR 3.6 bn Comparable operating profit EUR 0.6 bn Balance sheet EUR 22 bn Personnel 9000 Russia OAO Fortum Power generation 25.5 TWh Heat sales 20.7 TWh Poland Power generation 0.6 TWh Heat sales 3.6 TWh Baltic countries Power generation 0.7 TWh Heat sales 1.3 TWh India Power generation 29 GWh Listed on the Helsinki Stock Exchange since 1998 Finnish state is the majority shareholder Market cap ~13 billion euros 2 1
Fortum has a long term experience in Waste to Energy In Scandinavia waste has been utilized as energy source since late 1960 s During the oil crisis in 1970 waste became important fuel for district heating Fortum s first waste to energy unit was constructed in 1970 in Stockholm Sweden Today Fortum has 11 waste to energy units in operation and two under construction In addition Fortum has five high temperature lines for incineration of hazardous waste Högdalen plant in the city of Stockholm Fortum ambition is to maximise added value of waste and biomass in its operations Naantali Co-owned Multifuel CHP (ready 2017) Brista and Högdalen Co-owned Waste CHP Värtan Co-owned Bio-CHP Stockholm Open district heating concept Oslo Co-owned Waste CHP Oslo Brista Högdalen Värtan Nyborg Joensuu Riihimäki Naantali Järvenpää Espoo Kumla Pärnu Tartu Jelgava Klaipeda Joensuu Bio oil production at CHP Järvenpää Bio-CHP Riihimäki Waste Park Bio Coal-bio Waste Other Co-owned India Sri Lanka Kumla Waste treatment facility Zabrze Częstochowa Espoo Heat recovery from water treatment facility Espoo Recovering waste heat from data centres Jakarta Jelgava Bio-CHP Espoo Geothermic DH with St1 (ready 2017) Finland Electric vehicles charging poles, Solar panels Sri Lanka Waste Park under development Pärnu Bio-CHP Klaipeda Waste-CHP Nyborg Biggest hazardous waste unit in Europe Zabrze Waste/coal/bio- CHP (ready 2018) Czestochowa Coal/bio-CHP Espoo Heat recovery from hospital (ready 2016) India looking investments in WtE Jakarta WtE plant under development 4 2
Growth of household waste follows the economical growth the biggest challenge today Source: Avfall Sverige 5 Waste hierarchy in EU Waste Directive - Energy Recovery important part, Landfills as Last Resort Non-waste Waste prevention reuse recycling recovery disposal Waste-to-Energy (WtE) Landfills Source: The Five-Step Waste Hierarchy in the EU Waste Framework Directive 6 3
Negative Impacts of Landfills Air Pollution Emits methane gas Uncontrolled Burning Open burning releases carbon monoxide and other contaminant gases Fauna Impacted through consumption of the solid waste Flora Impacted by waste, dust, or smoke from open burning Soil Pollution Heavy metal contaminants trapped below the surface Water Pollution Contamination occurs when leachate reaches surface and ground water 7 Lesson Learnt from EU Countries Germany Netherlands Austria Belgium Denmark Sweden All have introduced landfills bans; only three percent or less currently landfilled Diverting MSW from landfills could reduce the emission of 92 million tonnes CO 2equ by 2030. Source: The Climate Change Mitigation Potential of the Waste Sector, Institue for Applied Ecology 8 4
Development of waste treatment in Sweden - role of energy recovery and material recycling grows Source: Avfall Sverige 9 Waste to Energy is important part of Circular Economy 10 5
Role of energy recovery 11 Comprehensive waste recycling and treatment park 12 6
Energy Content of Waste 1 tonne Brown Coal 1 tonne Municipal Solid Waste (MSW) = or 0.330 tonne Coal or 250 liters Oil 13 WtE in daily life With 10 kg of waste you can power your laptop for 3 hours per day for 2 months With 10 kg of waste you can charge your mobile phone 5 times With 10 kg of waste you can shower 7 times 5 minutes each 14 7
Three WtE plants generate electricity for 50 percent of Paris 15 Directive 2000/76/EC on the incineration of waste makes it one of the most stringently regulated and controlled industrial activities. Janez Potočnik Former European Commissioner for Environment 8
DEI RWE Drax SSE CEZ E.ON Vattenfall EDP Enel Edipower EnBW Gas Natural F ENGIE Dong Energy Iberdrola Fortum total PVO EDF Verbund Fortum EU Statkraft 11/09/2017 Emission Limits in EU and Indonesia Component (mg/nm 3 ) Total particular 10 120 Suplhur dioxide (SO2) 50 210 Nitrogen (NO and NO2) 200 470 Hydrogen chloride (HCl) 10 10 Mercury (Hg) 0.05 3 Carbon monoxide (CO) 50 625 Hydrogen fluoride (HF) 1 2 Dioxins and Furans 0.1 0.1 Sunter WtE plant flue gas treatment system will be designed according to EU Limits Source: IED directive and Ministrial Decree of KLHK No. 70/2017 17 Our carbon exposure is among the lowest in Europe Fortum s specific emissions of the power generation in the EU in 2016 were 28 g/kwh and in total 173 g / k W h g CO 2 /kwh electricity, 2015 Share of CO 2 -free power in Fortum s generation in 2 0 1 6 1,200 1,000 800 600 400 Average 311 g/kwh 96% 62% 200 0 16 6 2 1 Fortum in the EU Fortum total 9
Securing good performance of WtE plant Securing of high long term availability and sustainablity requires State of art design and high quality critical components Long term experience in operation and maintenance of the plant Investment cost of WtE plant is typically 2.5 times higher compared to coal fired power plant with same electrical output Waste is difficult, inhomogenious and wet fuel, with low calorific value Dimensions is bigger, higher quality materials are and flue gas treatment is more complicated Operating cost of WtE plant is several times higher compared to coal fired plant with similar electricity output Amount of slag (inert part of waste) is higher increasing disposal cost Fly ash from fluegas cleaning contains harmful substances and must be treated properely Because of low calorific value of waste support fuel like oil is needed occasionally Main income streams for a WtE plant are gate fee and electricity feed in tariff Long term waste suply and power purchase agreements with proper levels of gate fee and electricity price are vital for securing good quality of waste to energy plant and thus facilitating reliable and sustainable waste treatment 19 THANK YOU Sunter 2200 tn/d WtE plant in Jakarta 20 10