Fortum facts for kids
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| Julkinen osakeyhtiö | |
| Traded as | OMX: FORTUM |
| Industry | Electricity |
| Predecessor | Imatran Voima (IVO) |
| Founded |
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| Headquarters | , |
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Area served
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Nordic countries, Poland, India |
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Key people
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| Products | Electric power Heat |
| Revenue |  €6.711 billion (2023) |
| €1.544 billion (2023) |
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| Total assets | €18.739 billion (2023) |
| Total equity |  €8.499 billion (2023) |
| Owner | Government of Finland, Finnish National Institutions (Kela, Keva, State Pension Fund, City Councils of Kurikka, Turku and Kauhajoki) (53.03%) |
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Number of employees
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5,225 (2023) |
Fortum Oyj is a large energy company from Finland. It is partly owned by the Finnish government. Fortum's main office is in Espoo, Finland. The company mostly works in the Nordic countries, which include Finland, Sweden, Norway, and Denmark.
Fortum's main job is to create and sell electricity and heat. They do this using different types of power plants, including ones that make both heat and electricity at the same time. Fortum also offers services like recycling and helping to clean up polluted land. You can find Fortum listed on the Nasdaq Helsinki stock exchange, which means its shares can be bought and sold by the public.
In 2020, Fortum was the biggest company in Finland based on how much money it made. It is also the third-largest producer of electricity in the Nordic countries.
Contents
Fortum's Journey: How It Grew
Starting with Imatran Voima (1932–1997)
Fortum's story began with a company called Imatran Voima (IVO). It was started in 1932. IVO's first big task was to run the Imatrankoski hydroelectric power plant. This plant uses the power of flowing water to make electricity.
The construction of the Imatra power plant started in 1922. Power lines were also built to carry electricity from Imatra to Helsinki. The power plant officially opened in May 1929. The Finnish government decided to create Imatran Voima Osakeyhtiö (IVO) in May 1932.
Over the years, IVO grew by buying and building more power plants. These included large hydroelectric plants along the Oulujoki river. They also built plants that used coal, like the ones in Ingå and Naantali. IVO even built the Loviisa nuclear power plant. In 1997, IVO decided to join with another Finnish company called Neste.
Becoming Fortum (1998–2010)
Fortum Corporation was officially created in 1998. This happened when Imatran Voima and Neste Oy merged. Neste Oy was Finland's national oil company at the time.
In 2003, Fortum made a deal with another energy company, E.ON. Fortum bought parts of Fredrikstad Energi in Norway. In 2005, most of Neste's original oil business was separated into a new company called Neste Oil.
Fortum also expanded into Russia during this period. In 2007, they bought a share in TGK-1, an energy company in northwest Russia. In 2008, Fortum took full control of TGK-10, which made natural gas, electricity, and heat in central and northern Russia. This company is now known as OAO Fortum.
Changes and Growth (2011–2019)
Fortum continued to make changes to its business. In 2011, they sold their share in Fingrid. Fingrid is the company that manages Finland's main electricity grid. In 2013, Fortum sold its electricity distribution network in Finland. This network carries electricity to homes and businesses. It was bought by a group of investors.
Fortum also focused on cleaner energy. In 2012, they were recognized for their efforts in fighting climate change. In 2013, Fortum opened new power plants that use waste or biomass (like wood chips) as fuel. These plants make both heat and electricity. They were built in places like Lithuania, Sweden, Latvia, and Finland.
Fortum also started investing in solar power. In 2013, they bought a solar power plant in Rajasthan, India. They also signed an agreement to work on nuclear power projects with other companies.
In 2014, Fortum sold its electricity distribution networks in Norway and Sweden. This meant they were no longer directly involved in delivering electricity to homes in those countries.
By 2015, Fortum had completed selling off all its electricity distribution businesses. They also started their first new solar park in India. In 2016, Fortum bought two more companies: Grupa DUON S.A., which sells electricity and gas in Poland, and Ekokem Corporation. Ekokem is a company that focuses on the circular economy. This means they specialize in recycling and reusing materials.
In 2017, Fortum connected a large solar plant in India to the electricity grid. In September of that year, Fortum announced plans to buy a big share in a German power company called Uniper. Uniper mainly uses oil, natural gas, and coal to produce electricity. Fortum increased its ownership in Uniper to 75% in 2020.
Recent Events (2020–present)
In 2020, Fortum and another company, Kværner, announced they would work together. They planned a project to capture carbon from a waste burning plant in Norway. This helps reduce greenhouse gases.
In 2021, Fortum sold its businesses in Estonia, Latvia, and Lithuania.
In April 2023, Fortum's assets in Russia were taken over by the Russian government. Fortum said this was illegal. They recorded a large financial loss because of this. In July 2023, Russia changed the name of Fortum's former Russian business to Forward Energo. In February 2024, Fortum started legal action against Russia. They are seeking money for the assets that were taken.
How Fortum Makes Energy
Fortum uses several different ways to produce energy.
Hydropower
Hydropower is a very important way Fortum makes clean electricity. It uses the natural flow of water. In 2021, Fortum owned or partly owned over 150 hydropower plants. These plants are located in Finland and Sweden. They are on major rivers like the Dalälven and Oulujoki.
Nuclear Power
Fortum also uses nuclear power to generate electricity. In 2021, Fortum owned the Loviisa Nuclear Power Plant in Finland. They also have shares in other nuclear power plants in Sweden. These include the Oskarshamn Nuclear Power Plant and the Forsmark Nuclear Power Plant. Fortum also owns a share in Teollisuuden Voima. This company runs three nuclear power plants at Olkiluoto.
Combined Heat and Power (CHP)
Fortum is a big producer of heat. They sell heat in the Nordic countries, Russia, and Poland. They have 26 plants that make both heat (for district heating) and electric power at the same time. This is called cogeneration or CHP. Fortum is one of the top five heat producers in the world.
Selling Electricity and Heat
Fortum sells electricity and related services to 1.3 million customers. These customers are in Sweden, Finland, Norway, and Poland. In 2014, Fortum closed its large coal power plant in Ingå, Finland. It was later taken down in 2020.
The company also owns and operates many kilometers of district heating networks. These networks deliver heat to buildings. They have about 1,200 kilometers in Finland, 2,400 kilometers in Sweden, 860 kilometers in Poland, and 480 kilometers in Russia.
Solar Power
Fortum wants to learn more about solar power. They aim to build smaller solar power projects. This helps them gain experience with different solar technologies. It also helps them learn about working in the Indian power market. Fortum also sells solar power kits for homes in the Nordic countries.
Recycling and Waste Solutions
Fortum offers services to help manage waste and materials. These services are available in the Nordic countries. They include recycling, finding ways to reuse materials, and safe ways to get rid of waste. Fortum also helps clean up polluted soil and build environmentally friendly structures.
Fortum's Environmental Efforts
In 2014, Fortum sold the most ecolabelled electricity in Finland. Ecolabelled electricity means it's produced in an environmentally friendly way. However, they no longer offer this in Finland.
After Fortum bought a majority share in Uniper in 2020, some environmental groups raised concerns. They said that Fortum would become one of the biggest emitters of greenhouse gas emissions in the European Union. Groups like Extinction Rebellion Finland accused Fortum of "greenwashing." This means they felt Fortum was trying to appear more environmentally friendly than it was. They pointed to Uniper opening a new coal-fired power plant in Germany in 2020.
Helping Communities
Fortum also works on social responsibility projects. In February 2014, Fortum helped three schools in Bhilwara, India. They provided these schools with solar-powered equipment. This was in an area where Fortum had a solar power plant.
Uniper: A Big Change
On September 21, 2022, Fortum announced a major decision about Uniper. Uniper would be fully sold to the German government. This agreement meant that Uniper would issue new shares. The German government planned to buy these shares. This would give Uniper a lot of financial support.
The German government also planned to buy all of Fortum's shares in Uniper. This deal was worth about 0.5 billion euros. As part of the agreement, Fortum's loans to Uniper would be paid back. Fortum also agreed to release a guarantee it had given to Uniper.
The agreement also included a special right for Fortum. If Uniper decides to sell any of its hydropower or nuclear assets in Sweden before the end of 2026, Fortum would have the first chance to buy them.
See also
- Energy in Finland
