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 big 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 (like Finland, Sweden, Norway). Fortum runs power plants that make and sell electricity and heat. They also offer services like recycling and helping clean up polluted land. Fortum is listed on the Nasdaq Helsinki stock exchange, which means its shares can be bought and sold there.
In 2023, Fortum was the third-largest electricity producer in the Nordic region.
Contents
Fortum's Story: How It Started and Grew
Early Days: Imatran Voima (1932–1997)
Fortum's story began with a company called Imatran Voima (IVO). It was started in 1932. IVO's first job was to run the Imatrankoski hydroelectric power plant in Imatra.
Building the Imatra power plant began in 1922. Power lines were also built to Helsinki. The power plant opened in May 1929. The Finnish Government officially created Imatran Voima Osakeyhtiö (IVO) in May 1932.
Imatran Voima bought and built many other power plants. These included large hydroelectric plants along the Oulujoki river. They also built coal-fired plants like Ingå and Naantali. IVO also owned the Loviisa nuclear power plant. In 1997, IVO decided to join with another company called Neste.
Becoming Fortum (1998–2010)
Fortum Corporation was officially created in 1998. It was formed by combining Imatran Voima and Neste Oy. Neste Oy was Finland's national oil company at the time.
In 2005, most of Neste's businesses were separated. They became a new company called Neste Oil. Fortum continued to grow. In 2007, Fortum bought a part of TGK-1, an energy company in Russia. In 2008, Fortum took full control of TGK-10 in Russia.
Changes and Growth (2011–2021)
Fortum made several changes to its business during these years. In 2011, Fortum sold its share in Fingrid, which manages Finland's electricity grid. In 2013, Fortum also sold its electricity distribution network in Finland.
In 2012, Fortum was recognized for its efforts in fighting climate change. It shared the top spot in a Nordic climate index.
Fortum also started using more renewable energy. In 2013, they opened new power plants in Lithuania and Sweden that use waste as fuel. They also opened plants in Latvia and Finland that use biomass (like wood chips). Fortum bought a solar power plant in India in 2013.
In 2014, Fortum sold its electricity networks in Norway. By 2015, they had sold all their electricity distribution businesses. This included the network in Sweden.
In 2016, Fortum bought Grupa DUON S.A., an electricity and gas company in Poland. They also bought Ekokem Corporation. Ekokem is a company that specializes in recycling and waste management.
In 2017, Fortum connected a large solar plant in India to the power grid. In September of that year, Fortum announced it would buy a large share of a German energy company called Uniper. Fortum increased its ownership in Uniper to 75% by early 2020. Uniper mainly used oil, natural gas, and coal to make electricity.
In 2020, Fortum and Kværner planned to work together on a project. This project aimed to capture carbon from a waste burning plant in Norway. By 2020, Fortum was the biggest company in Finland by how much money it made. Most of this money came from Uniper.
In 2021, Fortum sold its businesses in Estonia, Latvia, and Lithuania.
Uniper Divestment (2022)
In September 2022, Fortum announced that Uniper would be fully sold to the German government. This happened because Uniper faced financial difficulties. The German government bought Fortum's shares in Uniper for about 0.5 billion euros. This made Uniper a state-owned company in Germany.
Fortum also kept a special right. Until the end of 2026, Fortum can be the first to buy Uniper's hydropower and nuclear assets in Sweden if Uniper decides to sell them.
Recent Events (2023-Present)
In April 2023, Russia took control of Fortum's assets in Russia. This was a response to other countries taking Russian property. Fortum said this was illegal and recorded a loss of 1.7 billion euros.
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 Operates
Fortum uses different ways to produce energy.
Hydropower: Clean Energy from Water
Hydropower is a very important way Fortum makes clean electricity. In 2021, Fortum owned or partly owned over 150 hydropower plants. These plants are in Finland and Sweden. They are located on rivers like the Dalälven and Indalsälven in Sweden. In Finland, they are on the Oulujoki, Kemijoki, and Vuoksi rivers.
Nuclear Power: Energy from Atoms
In 2021, Fortum owned the Loviisa Nuclear Power Plant in Finland. They also had shares in nuclear power plants in Sweden. This included a 43% share in the Oskarshamn Nuclear Power Plant. They also owned 22% of three Forsmark Nuclear Power Plants. Fortum also had a 27% share in Teollisuuden Voima. This company runs three nuclear power plants at Olkiluoto.
Combined Heat and Power (CHP) Plants
Fortum produces and sells heat in the Nordic countries and Poland. They have four plants that make both heat (for district heating) and electric power at the same time. This is called cogeneration or CHP. It's an efficient way to use fuel.
Selling Electricity and Heat
Fortum sells electricity and related services to over 2 million customers. Most of these customers are in the Nordic countries 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 homes and buildings.
Solar Power: Energy from the Sun
Fortum wants to build more solar power plants. They want to learn about different solar technologies. They also want to gain experience working in the Indian power market. Fortum also sells solar power kits to people in the Nordic countries.
Fortum's Environmental Efforts
In 2014, Fortum sold the most "ecolabelled" electricity in Finland. This means the electricity was produced in an environmentally friendly way. However, they no longer offer this type of electricity in Finland.
After Fortum bought a majority of Uniper in 2020, some environmental groups raised concerns. They said Fortum would become one of the biggest producers of greenhouse gas emissions in the EU. This was because Uniper used a lot of fossil fuels. Some groups accused Fortum of "greenwashing." This means they felt Fortum was trying to look environmentally friendly while still using fossil fuels.
Fortum's Social Responsibility
In 2023, Fortum became the first company in Finland to get a "Fair Tax Mark" certification. This means they are recognized for paying their taxes fairly and transparently.
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 plant.
See also
- Energy in Finland
