Company – ActiveThis profile is actively maintained
Company – ActiveThis profile is actively maintained
Why this profile?
Fortum seeks to become a carbon-neutral electricity producer by 2050. This strategy involves operating nuclear and combined heat/power plants fuelled by biomass however, which have their own negative impacts and risks.
|Sectors||Coal Electric Power Generation , Biomass Electric Power Generation, Hydroelectric Power Generation, Nuclear Electric Power Generation, Oil and Gas Extraction|
listed on Helsinki Stock Exchange
Fortum is majority-owned by the Finnish Government (50.76%). Fortum's complete shareholder structure can be accessed here.
Fortum is a Finnish company engaged in the generation and sale of electricity and heat, and the operation and maintenance of hydro, coal, gas and nuclear power plants, as well as other energy-related services. Established in 1998, the company operates in over 40 countries, including Finland, Sweden, Norway, Poland, Estonia, India and the United Kingdom. Fortum withdrew from Russia during 2022. The majority of its income came from Uniper that became Fortum's subsidiary in March 2020. Uniper was nationalised by Germany on the 21 September 2022. Fortum agreed to fully divest Uniper to the German State.
Fortum is Europe's second-largest producer of nuclear power and one of the largest gas suppliers. It also produces heat and power via biomass and waste.
Impact on climate
Despite its commitment to reducing carbon emissions, Fortum has actually been moving backward. Between 2019 and 2021, the company increased its power generation from natural gas, coal, and biomass, while decreasing energy production from solar and wind. In 2021, renewable solar and wind power constituted less than 0.5% of the company’s total power generation. The company has not committed to phasing out its coal power projects by 2030 and still has no coal-exit plan for one of its power plants in Russia.
Fortum also hopes to achieve its net zero commitments through blue hydrogen and carbon capture and storage (CCS). Because CCS is powered by fossil fuels, the greenhouse gas emissions of blue hydrogen may actually be higher than emissions from fossil gas and coal. Fugitive methane - gas which escapes during production and transportation - floods into the atmosphere and poses a substantial risk at any blue hydrogen power plant. Fortum also baselessly assumes that captured carbon dioxide from its plants can be stored indefinitely. The company’s climate change mitigation strategy rests on unreliable technologies, even as it freely admits that “not all technical solutions are known yet or commercially available.”
As of Fortum’s 2018 financial report (p.52), 17 banks had provided the company with credit facilities totalling EUR 1.75 billion. Fortum has also issued bonds in six rounds worth a total of EUR 4.1 billion. See below for the individual banks that have arranged finance for Fortum.
In June 2022, Fortum signed a new EUR 5.5 billion revolving credit facility which consists of a EUR 3.1 billion Liquidity revolving credit facility (maturity in June 2023) and a EUR 2.4 billion Core revolving credit facility (maturity in June 2025). The existing EUR 1.75 billion revolving credit facility was repaid and cancelled in June 2022. The new credit facility is financed by Barclays and BNP Paribas. See below for more details.
As of Oct 31 2022, OP Financial Group, Nordea and Danske Bank hold, via their subsidiary investment funds, shares in Fortum. See below for more details.
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Uniper seeks court ruling over Dutch coal exit
Fortum raises stake in Uniper to more than 75%
Fortum looks to extend operation of Loviisa plant
Climate activists in Germany break into Fortum-linked coal plant
Uniper to shut down German hard-coal power plants by 2025
Greenpeace to Finland’s energy giant Fortum: “Walk the talk on climate”
Harkimo: Finland’s climate actions complicated by Fortum raising stake in Uniper
Uniper, Fortum in constructive but complex talks over future
Fool’s Gold – €16bn for Europe’s biggest climate polluters
Fortum/Uniper among Europe's worst polluters, say NGOs
Fortum wraps up 3.7bn-euro purchase of German power firm Uniper
ING still invests hundreds of millions in polluting coal companies
Banking on Thin Ice: Two years in the heat
2022-09-12 00:00:00 | Fortum to relinquish entirety of Uniper to Germany
The German state has moved to acquire energy company Uniper from Finnish energy company Fortum. A bailout deal was originally planned for the beleaguered company in July, but further deterioration of its fortunes has since prompted Uniper’s state acquisition. Fortum says it will now “refocus on clean Nordic power generation as its core business”. Completion of the deal is expected before the end of 2022.
2022-07-22 00:00:00 | Fortum relinquishes share of Uniper stake to Germany in bailout deal
Finnish energy company Fortum has agreed a bailout deal for Uniper with the German government. One of the biggest bailouts in German corporate history will see the government acquire 30% of Uniper, with Fortum’s stake shrinking from nearly 80% to 56%. Worth EUR 15 billion, the bailout has been triggered by a volatile gas market following Russia’s invasion of Ukraine. The package is now pending approval by the European Commission and Uniper’s shareholders.
2020-08-18 00:00:00 | Fortum increases Uniper stake to 75%
Uniper shareholder Fortum has just raised its stake in the German utility company from 49.9% to just over 75%.