tomorrow's sustainable energy solutions and urban living
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Tomorrow's Sustainable Energy Solutions and Urban Living. Anne Brunila Executive Vice President, Corporate Relations and Sustainability Fortum Corporation. 1. Contents - Fortum today - Sustainability challenges - Tomorrow's energy system - Smart energy solutions and urban living. 2. - PowerPoint PPT PresentationTRANSCRIPT
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Tomorrow's Sustainable Energy Solutions and Urban LivingAnne Brunila
Executive Vice President, Corporate Relations and Sustainability
Fortum Corporation
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Contents- Fortum today- Sustainability challenges- Tomorrow's energy system- Smart energy solutions and urban living
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Foreign investors 30.1%Finnish State 50.8%
Other Finnish investors 9.0%
Households 7.5% Financial and insurance institutions 2.6%
• Listed at the Helsinki Stock Exchange 1998
• Approximately 100,000 shareholders
• Among the most traded shares in Helsinki stock exchange
• Market cap ~19 billion euros
Fortum today a leading Nordic power and heat company
31 January 2011
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Fortum’s geographical presence
TGC-1 (~25%)Power generation ~6 TWhHeat sales ~8 TWh
OAO Fortum Power generation 16.1 TWhHeat sales 26.8 TWh
RussiaRussia
PolandHeat sales 4.0 TWh Electricity sales 0.1 TWh
Baltic countriesHeat sales 1.4 TWhElectricity sales 0.3 TWhDistribution cust. ~24,000
Nordic countriesPower generation 52.3 TWh
Heat sales 20.7 TWh
Distribution cust. 1.6 million
Electricity cust. 1.2 million
Nr 2 Power generation
Electricity sales
Nr 2
Nr 1 Heat
Distribution Nr 1
Key figures 2010Sales EUR 6.3 bnOperating profit EUR 1.7 bn Personnel 10,600
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Electricity Solutions and Distribution Division is responsible for Fortum's electricity sales and distribution activities. It consists of two business areas: Distribution and Electricity Sales.
Russia Division consists of power and heat generation and sales in Russia. It includes OAO Fortum and Fortum’s slightly over 25% holding in TGC-1.
Power Division consists of Fortum’s power generation, physical operation and trading as well as expert services for power producers.
Heat Division consists of combined heat and power generation (CHP), district heating and cooling activities and business-to-business heating solutions.
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Sustainability embedded in the strategy
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Fortum's carbon exposure among the lowest in Europe
Source: PWC & Enerpresse, Novembre 2010Changement climatique et Électricité, Fortum
g CO2/kWh electricity, 2009
Average 346 g/kWh
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The share of CO2-free power generation was 69% ofFortum's total power generation.
In the EU, the share was 91% of the power generation and ~100% of the capacity of the ongoing investment programme.
Note:Fortum’s specific emission of the power generation in 2010 in the EU were 84 g/kWh and in total 189 g/kWh, 86 % (91 %) emission free in EU and 66 % (69 %) emission free overall.Figures for all other companies include only European generation.
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Sustainability challenges
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The need to mitigate climate change What efforts are necessary?
* International Energy Agency
GTCO2
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Zero growth of global CO2 emissions
Estimated requirement to limit temperature increase to 2 ˚C
1950 20502000
Global CO2 emissions
Emissions
IEA* baseline scenario
8 wedges
6 additional wedges
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Each single wedge equals for example…
2 million 1 MW wind power plants
CCS in 800 large coal-fired power plants
Doubling the efficiency of world’s coal-fired power plants
Halving car mileage (or halving emissions from all
passenger vehicles)
500 Olkiluoto 3 nuclear power plants (1600 MW)
A bio crops plantation equaling the total area of India
More than 3 200 000 km2
Source: Fortum
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Tomorrow’s energy system –
Solar Economy
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Our view of the future:Towards Solar Economy
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Finite resources Large CO2 emissionsFinite resources Large CO2 emissions Infinite resources Emissions free productionInfinite resources Emissions free production
Traditional energy production
Exchaustible fuels and production that burdens the environment
Transition phaseEnergy efficient, low-emission
production forms
Solar economy
Inexhaustible and emissions-free, solar-based production forms
CHP
Fossile CCS
Nuclear power
Bio-CHPCCS + bio-CHP
GeothermalWater
Wind
Sun
Wave
Nuclear+ CHP
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Ongoing solar energy projects
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Ongoing wave power projects
Seabased 10MW
WaveRoller 300kW
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Increased renewable energy require “smarter” grids and “smarter” consumption
Future customers
• Consumers become producers
• Energy flows in both directions
• Intelligent customer gateway enables buying and selling
Source: LUT Energy
Traditional electricity grids
• Centralised power production
• Energy flows in one direction
• Production adapts to usage
• Power production based on historical experience
• Limited opportunities to connect new power production
Source: Fortum
• Centralised and dispersed power production
• The share of non-adjustable renewable power production increases
• Production based on real time data
Future electricity grids
Source: Fortum
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Wide areafleet managent
Transmission
Environmental constraints
Deregulation
Distribution into cables
Digitalizingcontact centreand services
On-linemeasurements
Rapidly increasinginformation management
Wirelesseverywhere
Distribution
Consumption
Market places
Green certificates
Branding
Distributedgeneration
Internet
Electric transportation
Smart homes
Smart grids
Heat pumps
District heating
Production
Source: Fortum Foundation
Energy business has changed and keeps on changing….
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CHP – sustainable and efficient use of resources
Losses 25Losses 25 Losses 48Losses 48
CHP production75% efficiencyCHP production75% efficiency
Separate production52% efficiencySeparate production52% efficiency
Fuel100Fuel100
Fuel100Fuel100
Electricity 25Electricity 25
Heat 50Heat 50
Electricity 17Electricity 17
Heat 35Heat 35
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Economically viable in
small scale
One plant – multiple products
Renewables competitive to
fossil fuels
Fuel flexibility Efficient use of resources
Large global potential
CHP’s advantages
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District heating has reduced emissions in Stockholm since 1980
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– 60 % CO2(carbon dioxide)
– 80 % NOx(nitrogen oxides)
– 95 % SOx (sulphur oxides)
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Smart energy solutions and urban living
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• Solar and wave power• Biomass pyrolysis• Advancing a rapid
adoption of electric vehicles
• New CHP, district heating and cooling solutions
• Distributed energy production and smart grids
• Increased nuclear safety and lifetime, nuclear CHP
Transport
Capture
Storage
Towards sustainable societies and urban living – Environmentally-benign R&D in Fortum
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New solutions launched by Fortum
Transport solutions
Grid management solutions
Smart buildings and metering solutions
New Business focus areas
Distributed electricity production
Distributed heat production
Microproduction
Energy services
Heat pumps and micro-CHP(1)
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Smart Heat – towards future sustainable energy system
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Electricity, heat, cooling, and gas in one integrated system where we always make use of surplus energy
The sustainable energy system of the future We use energy that would otherwise be
lost, and use it when it is needed
1. Enables more solar and wind power2.
Increased integration between the heating and electricity systems
3. Heat and cold storage
4. Increased share of local production in buildings
5. Smart grids
6. Electric vehicles and bio gas vehicles
We make use of all local energy
1. Recycling turns household waste into electricity, heat, and biogas
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Sustainable district solution in Espoo
District heating network
Heat pump facility
District cooling network
Server centre
CHP plant
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Royal Seaport of Stockholm – A prime example of sustainable urban development
Vision• Royal Seaport – an international benchmark
of sustainable urban development
Mission and goals• Build 10,000 new apartments, 30,000 work
spaces and a wide harbour in 2009-25
• Fossil fuel free-zone in 2030
• CO2-emissions less than 1.5 tonne/person
by 2009-2025 (currently 4.5 tonne/person)
Focus areas• Efficient use of energy• Climate-benign transport solutions• Life style -issues
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In future smart homes, the consumer can easily and effortlessly
– Monitor and manage selected devices remotely
– Steer the power source between utility grid, local generation and power storage or EV
– Automatically utilise dynamic pricing for cost optimisation
– Get individualised advice for energy efficiency improvements
New common requirement is real-time interactivity
Digitalization and smart homes provide real-time interactivity and efficiency
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Electricity in transport: several development projects ongoing
Toyota Prius (PHEV*)
VW Passat (BEV)
Fiat Doblo (BEV)
Th!nk City (BEV*)
Different car types Charging units already installed
Cooperation in Sweden and Finland
Stockholm(Slow)
Finland(Slow and fast)
Stockholm(Slow)
Stockholm(Payment)
Stockholm
Espoo
Karlstad
Kurikka
Cooperation with Mitsubishi, PREEM and Valmet Automotive
*PHEV Plug-in Hybrid Electric Vehicles, BEV Battery Electric Vehicles
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Thank you!