27.8.2014 1

FORTUM FOUNDATION

The objective of Fortum Foundation is to support research and development as well

as teaching and education within natural, technical and economical sciences in the

energy area.

The focus areas are energy production and energy usage as well as energy

solutions for clean traffic fuels.

27.8.2014 2

Fortum Foundation’s Award Ceremony

3.00 pm Opening and Welcome

President and CEO Tapio Kuula, Chairman of the Board of

Fortum Foundation

3.10 pm Finnish energy-climate roadmap, Esa Härmälä, Director

General, TEM

3.25 pm Future outlines in oil business, Lars-Peter Lindfors, Senior Vice

President, Technology, Neste Oil Oyj

3.40 pm Future outlines in power and heat, Heli Antila, CTO, Fortum

Oyj

3.55 pm Development of solar economy, Professor Christian Breyr, LUT

4.20 pm Fortum Foundation's Scholarships 2014

ca. 4.30 Buffet

Finnish energy-climate roadmap

Fortum Foundation’s Award Ceremony 2014

Esa HärmäläDirector-General of the Energy Department

The Ministry of Employment and the Economy

Road Map is for the whole of the society but the biggest challenge is on the energy sector as energy production and consumption is responsible of 80 % (including transport) of GHG emissions

Besides climate and environment, energy security and competitiveness must be kept in mind

No single road is chosen in the RM but different alternatives are explored

The Committee will take a number of concrete positions

The four scenarios of the Low Carbon Finland – project by

VTT, GTK, METLA and VATT are the most important background material

1. growth

2. stagnation

3. save

4. change

International economic and technological developments are analyzed including their chances and risks

Energy production and consumption trends are analyzed

Sectors like agriculture and forestry analyzed as well

Cross-sectional issues are analyzed (for example clean tech)

The aim is to have several concrete positions. Many of them are

no-regret –type: what should be done under any circumstances

27.8.2014 8

Fortum Foundation’s Award Ceremony

3.00 pm Opening and Welcome

President and CEO Tapio Kuula, Chairman of the Board of

Fortum Foundation

3.10 pm Finnish energy-climate roadmap, Esa Härmälä, Director

General, TEM

3.25 pm Future outlines in oil business, Lars-Peter Lindfors, Senior Vice

President, Technology, Neste Oil Oyj

3.40 pm Future outlines in power and heat, Heli Antila, CTO, Fortum

Oyj

3.55 pm Development of solar economy, Professor Christian Breyr, LUT

4.20 pm Fortum Foundation's Scholarships 2014

ca. 4.30 Buffet

27.8.2014 9

Fortum Foundation’s Award Ceremony

3.00 pm Opening and Welcome

President and CEO Tapio Kuula, Chairman of the Board of

Fortum Foundation

3.10 pm Finnish energy-climate roadmap, Esa Härmälä, Director

General, TEM

3.25 pm Future outlines in oil business, Lars-Peter Lindfors, Senior Vice

President, Technology, Neste Oil Oyj

3.40 pm Future outlines in power and heat, Heli Antila, CTO, Fortum

Oyj

3.55 pm Development of solar economy, Professor Christian Breyr, LUT

4.20 pm Fortum Foundation's Scholarships 2014

ca. 4.30 Buffet

Future outlines in powerand heatHeli Antila, CTO Fortum

Fortum Foundation’s Seminar 27.8.2014

11

Solar EconomySolar based production with

high overall system efficiency

Geothermal

Hydro

Wind

Sun

Ocean

Traditional

energy productionExhaustible fuels that

burden the environment

Coal Gas

Oil

Advanced

energy productionEnergy efficient and/or

low-emission production

Nuclear

today

Nuclear

tomorrow

CHP

CCS

Bio

Copyright © Fortum Corporation

All rights reserved by Fortum Corporation and shall be deemed the sole property of Fortum Corporation and nothing in this slide

or otherwise shall be construed as granting or conferring any rights, in particular any intellectual property rights

Energy is an enabler

Storage

Active

ConsumerDemand

Response

Lo

w

Eff

icie

ncy

Hig

h E

ffic

iency

High Emissions Emission free

Interconnectors

Smart

applications

Declining technology costs allow transition towards solar economy faster and with much less subsides going further

12

0,50

0,70

0,90

1,10

1,30

1,50

1,70

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

$/W Solar module average selling price

The curve represents an average of the selling prices reported by the following companies:

Canadian Solar, Yingli Solar, Hanwha Solar, China Sunergy, Jinko Solar, Renesola, Trina

Solar

-60% in selling prices in 11 quarters

0,70

0,80

0,90

1,00

1,10

1,20

1,30

H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013

€/W Cost trend of onshore wind turbine prices, by contract date

Data exclude Asian turbines.

New players and solutions in the consumer market

Fortum Fiksu

NEST

0,00

10,00

20,00

30,00

40,00

50,00

60,00

00 -

 01

01 -

 02

02 -

 03

03 -

 04

04 -

 05

05 -

 06

06 -

 07

07 -

 08

08 -

 09

09 -

 10

10 -

 11

11 -

 12

12 -

 13

13 -

 14

14 -

 15

15 -

 16

16 -

 17

17 -

 18

18 -

 19

19 -

 20

20 -

 21

21 -

 22

22 -

 23

23 -

 00

+

=

Solar City

New solutions in district heating – open district heating network

14

Case Banhof

Before: Servers were cooled with machines

and surplus heat was vented out

Today: Banhof installed a cooling pump and the

surplus heat is sold to the DH grid. Price is

dependent on the temperature of the return

water.

Case COOP Konsum

Cooling machines cool the food refrigerators in

the stores producing high temperatures.

Both district heating and district cooling

connected to the building.

Surplus heat sold to the DH grid.

15

Source: Fortum

Wave energy

Wind energy

Bioenergy

Solar energy

Hydro energy

Transmission needs:Natural resources

renewable energy:

Make energy available: Transmission & infrastructure

• Optimal location of renewable

generation

• Enabling flexibility to balance the

volatility across country borders

• Improved European security of

supply through enhanced and

smart transmission grid network

• Avoiding costly national solutions

16

Source: Fortum

Make energy available: Common market & trade

• Functioning carbon market and

transparent carbon price

• Functioning European electricity

market

• Renewable energy integrated in

the market

• Reward of flexibility in the market

• Enforced smart grid and

interconnector trade

17

Source: Fortum

Make energy available: EU wide common policy & incentives

• CO2 price as key driver for

decarbonisation

• From market integration to EU wide

policy harmonisation

• Leverage and materialize common

policy benefits on EU level

• Common RD&D support schemes

and joint developments for

emerging and immature

technologies

18

Source: Fortum

Make energy available: Smart end use of energy

• Demand side activities and smart

applications

• End user market participation

• Smart networks to increase

flexibility

• Electricity synergies with transport

and heating

• Aggregated services and new

business models0,00

10,00

20,00

30,00

40,00

50,00

60,00

00 -

 01

01 -

 02

02 -

 03

03 -

 04

04 -

 05

05 -

 06

06 -

 07

07 -

 08

08 -

 09

09 -

 10

10 -

 11

11 -

 12

12 -

 13

13 -

 14

14 -

 15

15 -

 16

16 -

 17

17 -

 18

18 -

 19

19 -

 20

20 -

 21

21 -

 22

22 -

 23

23 -

 00

+

=

We work for the next generation energy

27.8.2014 20

Fortum Foundation’s Award Ceremony

3.00 pm Opening and Welcome

President and CEO Tapio Kuula, Chairman of the Board of

Fortum Foundation

3.10 pm Finnish energy-climate roadmap, Esa Härmälä, Director

General, TEM

3.25 pm Future outlines in oil business, Lars-Peter Lindfors, Senior Vice

President, Technology, Neste Oil Oyj

3.40 pm Future outlines in power and heat, Heli Antila, CTO, Fortum

Oyj

3.55 pm Development of solar economy, Professor Christian Breyr, LUT

4.20 pm Fortum Foundation's Scholarships 2014

ca. 4.30 Buffet

27.8.2014 21

Fortum Foundation’s Award Ceremony

3.00 pm Opening and Welcome

President and CEO Tapio Kuula, Chairman of the Board of

Fortum Foundation

3.10 pm Finnish energy-climate roadmap, Esa Härmälä, Director

General, TEM

3.25 pm Future outlines in oil business, Lars-Peter Lindfors, Senior Vice

President, Technology, Neste Oil Oyj

3.40 pm Future outlines in power and heat, Heli Antila, CTO, Fortum

Oyj

3.55 pm Development of solar economy, Professor Christian Breyr, LUT

4.20 pm Fortum Foundation's Scholarships 2014

ca. 4.30 Buffet

Hakemusten määrät ja jakaumat 2014

Säätiö vastaanotti huhtikuun 2014 haun

yhteydessä 185 (vuonna 2013 112)

hakemusta yhteissummaltaan 6.250.955,00

(3.219.849,00) euroa.

Säätiö hyväksyi 43 uutta, yhteissummaltaan

550.785,00 euroa vuodelle 8/2014-8/2015.

Monivuotisia on 5 kappaletta,

yhteissummaltaan 70.000,00 e.

27.8.2014 23

Foundation News…

Annual cycle

- Next application round will be in April 2015.

- Decisions on the scholarships will be made by mid-June.

- The awards ceremony will be on August at the Fortum Headquarters.

27.8.2014 FORTUM FOUNDATION24

Awards

Scholarships 2014

Afshin Abrishamkar” Utilization of Novel Micro Pilots for Process Development”

Venkata Bandi“Household Lightning: A Case Study of LED Technology Promotion in India”

Kumar Baul Tarit” Climate benefits of carbon sequestration and material substitution by forest energy biomass and

harvested wood products”

Aleksi Eronen“Light assisted water splitting – how to store energy in hydrogen”

Bhushan Gadgil” Polyviologen and viologen functionalized polythiophenes for photovoltaic applications”

Julija Grigonyte” Emissions from boilers operating on pyrolysis oil, heavy fuel oil and biomass”

Johanna Hakonen” Catalytic depolymerization of lignin by sulfided catalysts”

Scholarships 2014

Hashmi Syed Farhan” Postgraduate Studies (Phd), second year”

Hannu Karjunen” Integrated Energy Storage Vessel for Large Scale Power-to-Gas Applications”

Jussi Karttunen” Kuusivaiheisen kestomagneettitahtikoneen vektorisäätö”

Miriam Kellock” Analysis of the rate limiting steps in the high solid enzymatic hydrolysis: effect of lignin and enzyme

structure”

Tahamina Khanam” Is biofuel substituting fossil fuel? –modeling on structural shifts, trade and efficiency of European

forest based bioeconomy”

Mariia Kozlova“Analyzing the Effects of the New Renewable Energy Policy in Russia on Investments into Wind, Solar

and Small Hydro Power”

Scholarships 2014

Jani Laine“Uudet kuluttajaenergialiiketoimintamahdollisuudet muuttuvassa liiketoimintakehyksessä”

Joni Lehto” Improved Biorefinery Concepts Integrated to Pulp Mills”

Mikko Lilja“Pyörimiskeskipisteen epätarkkuuden korjaaminen ydinpolttoaineen emissio- ja

transmissiotomografiakuvantamisessa”

Suvi-Katriina Mikkola” Biomassaa liuottavien ionisten nesteiden toksisuus seeprakala-alkioihin”

Muddassar Hassan Raja” Refining black liquor into biofuels and energy”

Muhammad Nasrullah“Material and energy balances of solid recovered fuel (SRF) production”

Aleksi Neuvonen“Backcasting Scenarios and urban planning practices of low-carbon cities”

Scholarships 2014

Johanna Nieminen” Modelling the behaviour of heavy metal and alkali metal compounds in biomass boilers”

Oyetade Oyewunmi“Maakaasu ja sähköntuotanto Nigeriassa ja Euroopan unionissa: Vertaileva tutkimus eri säätelymallien

välillä”

Sirja-Leena Penttinen” Free movement law and energy – Oxford University, research visit funding application”

Heikki Peura” Technology and competition in electricity markets”

Salla Puupponen“Novel nanomaterials for heat storage systems”

Joonas Päivärinta“Understanding the demand side resources’ contribution to security of supply: some economic,

behavioral and operational aspects of the market design choices”

Scholarships 2014

Rahman Abul Kalam Mohammad Yeasinur” Is stump harvesting sustainable practice for bioenergy production to mitigate climate change?”

Pauliina Rajala“Deposition, corrosion and fouling in cooling water cycles – mechanisms, monitoring and prevention”

Taina Rauhala” Litiumioniakkuja koskevaan väitöskirjatutkimukseen liittyvä tutkijavierailu Argonnen kansalliseen

laboratorioon Yhdesvaltoihin”

Niko Saari” Uusien aurinkokennomateriaalien kehitys”

Reeti Saarinen“Driven by Energy: Commodity Market Sentiment and Equity Transaction Timing”

Clara Sánchez Pérez“Preparation, Structures and Bonding of Catenated Polychalcogenides: Impact on Catalysis, Photovoltaic

Devices and Oil Field Industry”

Scholarships 2014

Laura Schneider” Mechanocatalytic approach to fractionation of lignocellulosic biomass”

Elina Tampio“Optimization of anaerobic digestion and digestate quality of nitrogen-rich waste materials”

Juha Teirilä” Taloudelliset insentiivit aurinkoenergian optimaaliseen hyödyntämiseen”

Petri Tervasmäki” Hydrodynaamisten olosuhteiden vaihtelu lignoselluloosabiomassan hydrolyysissä”

Diego Lobera Torres“Thesis Monograph: Modeling and Analysis of the Operation of PV Power Generators under Varying

Atmospheric Conditions”

Tuomi Sanna“Biomassapohjaisen kaasutuskaasun kuumasuodatus korotetussa suodatuslämpötilassa biomassan

kaasutusteknologiaan perustuvien tuotantoprosessien kannattavuuden parantamiseksi”

Scholarships 2014

Pekka Wartiainen“Dynaamisia visualisointi- ja analyysimenetelmiä energiantuotantoprosessin kehittämisessä”

Sampsa Vierros“Surfactant based separation”

Jukka Viinamäki“Tehoelektroniikkalaitteiden passiivikomponenttien optimointi aurinkosähköjärjestelmässä”

Tommi Yu“From Strategic Planning and Macro-Control Towards The Establishment of Legal Regime for The Energy

Sector in the Peoples Republic of China”

27.8.201432

Thank you!