Fortum Contracted to Raise Finland's Solar Power Capacity
Finland's Fortum, a majority state-owned utility company, won a tender to increase Finland's total solar production capacity by nearly 30 percent, the firm said on Monday. Fortum will install a solar electricity system on rooftops of about 40 commercial buildings across Finland. Even though their combined output will be of only 10 megawatts (MW), the project will be the biggest ever of its kind in the Nordics. The total solar power production capacity in Finland neared 35 MW by the end of 2017 and adding the new installations will increase the country's output by about 30 percent.
Dutch Energy Company Eneco Working with Citi on Sale
Dutch energy company Eneco is working with investment bank Citi to advise on its privatisation, which should kick off soon, three sources familiar with the matter said. The U.S. investment bank joins ABN Amro, which advises the company's management, and boutique firm Aperghis, working with shareholders, and will take instruction from both the company and the owners as they move forward to resolve a long-standing conflict, one of the sources said. Eneco declined to comment. Citi did not immediately respond to a request for comment.
Eneco seeks new CEO as Privatization looms
Eneco, the Dutch energy company on the verge of being privatized, is looking for a new chief executive to replace Jeroen de Haas who will step down on Sept.
Finland's Fortum Starts Delayed Russian Unit
Finland's state-controlled utility Fortum Oyj said it has completed its investment programme in Russia after starting production at a delayed unit at its Chelyabinsk heat and power plant on Tuesday. The new unit is fully backed by Russia's Capacity Supply Agreement (CSA) system, Fortum said. Since 2008, Fortum has constructed eight gas-fired units in Russia with a combined capacity of over 2 gigawatts. Fortum recently revised its targets for its Russian business and now expects an 18.2 billion rouble ($246 million) operating profit level for the unit during 2017-2018.
Fortum Buys Stake in Wave Power Startup
Finland's top utility, state-controlled Fortum, on Monday said it has acquired a 14 percent stake in Finnish wave energy developer Wello. Wello has developed a floating vessel that captures energy from waves and converts it into electrical power with a generator, Fortum said. It did not disclose the value of the deal. (Reporting By Jussi Rosendahl; Editing by Michael Urquhart)
Uniper says Fortum Bid Not Welcome, Not in Discussions
German energy company Uniper , whose biggest shareholder is E.ON, on Wednesday said it had not invited a bid by Finnish state-controlled peer Fortum. "This unsolicited takeover offer is clearly not in line with the strategy of Uniper as recently reiterated publicly," Uniper chief executive Klaus Schaefer said in a statement. Uniper said it was not in discussions with Fortum or E.ON about the matter. Separately, Fortum CEO Pekka Lundmark in a call with reporters said the move was "not a takeover but an investment." Reporting by Vera Eckert
E.ON to Sell Remaining Uniper Stake to Fortum
Germany's E.ON will tender its remaining 46.65 percent stake in Uniper to Finland's Fortum, it said on Monday, ahead of an official deadline later this week. The decision confirms a preliminary deal struck in September, when E.ON agreed it could tender the stake at a fixed price of 22 euros per share, more than twice Uniper's listing price, to Fortum by Jan. 11. The deal gives E.ON, which spun off Uniper and its power plants in 2016 to focus on more promising networks and renewables…
Fortum Calls Russian Profit Targets a Challenge
State-controlled Finnish utility Fortum on Tuesday said it could lower its profit targets for its Russian business due to the weakened economic situation and the lower rouble foreign exchange level. Chief executive Tapio Kuula, addressing a speech in a shareholder meeting, said that Fortum's target of an annual operating profit of 500 million euros ($687 million) from 2015 onwards looked challenging. "Once the political and economic situation has stabilised, we will determine if there are still adequate possibilities to achieve the current target or if we should set a new target level…
Fortum Shedding Swedish Power Grid
Finland's Fortum is expected to launch a sale of its Swedish power grid seen fetching around 6 billion euros ($7.5 billion) this month, three people familiar with matter said. The sale follows Fortum's divestments of its smaller Finnish and Norwegian grids and is part of a trend where European energy firms sell networks to cut debt amid low energy prices and focus on power generation and renewable energy. The people, who declined to be identified because details of the process are not public, said the sale could be completed around the end of the first quarter next year.
Bidders Line Up for Fortum's $7 bln Swedish Grid
Bidders including Borealis, Macquarie and Cheung Kong Infrastructure Holdings (CKI) are lining up multi-billion dollar bids for Fortum's Swedish power grid ahead of a mid-December deadline, sources familiar with the matter told Reuters. Finland's state-controlled utility Fortum is selling its Swedish power grid, which is seen fetching aroundm$7.4 billion , as part of a trend among European energy firms to split off their distribution networks to cut debt and focus on power generation and renewable energy.
Fortum Sells Swedish Grid for $6.9b
State-controlled Finnish utility Fortum on Friday said it has agreed to sell its Swedish power distribution business to Canada's Borealis and Swedish pension funds for about 6.6 billion euros ($6.9 billion). The deal completes Fortum's power grid divestments and follows recent sales of its smaller Finnish and Norwegian distribution businesses, from which the company raised in total 2.9 billion euros. It is also the latest in a series of regulated grid sales made by European energy firms wanting to cut debt and focus on power generation.
Elering Buys Controlling Stake in Estonian Gas Grid
Estonian power grid operator Elering AS will buy a controlling stake in the country's gas transmission system operator from Finnish utility Fortum for 27.5 million euros ($34.3 million), the companies said on Monday. State-owned Elering will buy from Fortum a 51.4 percent stake in Vorguteenus Valdus, a holding company which owns 100 percent of the Estonian gas transmission network. Other owners of Vorguteenus Valdus include Russia's Gazprom with 37 percent. State-controlled…
Setback for Finnish Plan to Build Russian-Designed Reactor
Finland's plans to build a Russian-designed nuclear reactor faltered on Wednesday when Finnish utility Fortum voiced doubt about taking a stake vital to win Helsinki's approval for the $6.71 billion project. Parliament has approved the plan to build a 1,200-megawatt (MW) reactor supplied by Russia's state-owned Rosatom, provided that Finnish or European Union investors own at least 60 percent of it. Rosatom has 34 percent. Fortum agreed last December to take a 15 percent stake in the project…
ESL Shipping to Enter the Renewable Energy Market
ESL Shipping and AB Fortum Värme have signed an agreement for biofuel transport. The agreement provides ESL Shipping with access to the renewable fuels transport market. The company's transport operations to the new Värtan Energy Port in Stockholm will commence at the end of this year. "Fortum will take an important step when its Stockholm power plant switches to more sustainable energy generation and the biofuel-fired CHP plant is completed. Biofuel is undeniably a good thing for sustainable development.
Finnish Ties with Russia Deepen Despite Ukraine
Plans to buy Russian nuclear reactor; aims to export electricity to Russia. Despite European Union calls for member states to curb ties with Russia over its aggression toward Ukraine, Finland looks set for closer links with Moscow in energy. A fraught project with French-German consortium Areva-Siemens has helped prompt Finnish nuclear consortium Fennovoima to look to Russia's Rosatom for a planned reactor while Finland also aims to begin power exports to Russia next year.
Enel Expects Four Bids for Slovak Utility Stake
Enel has drawn interest from four European energy companies for its controlling stake in Slovak power generator Slovenske Elektrarne with binding bids expected as early as April, three sources close to the deal said. Enel, one of Europe's most indebted utilities, is selling its 66 percent stake in the Slovak power producer as part of plans to cut debt in an effort to support investments and dividend. Finland's Fortum, Czech generators CEZ and EPH, and a Hungarian consortium comprising MOL unit Slovnaft and state-owned MVM Group have all expressed interest in the stake, the sources said.
Wind Blows Away Fossil Power in the Nordics, the Baltics Next
Wind power is blowing gas and coal-fired turbines out of business in the Nordic countries, and the effects will be felt across the Baltic region as the renewable glut erodes utility margins for thermal power stations. Fossil power plants in Finland and Denmark act as swing-producers, helping to meet demand when hydropower production in Norway and Sweden falls due to dry weather. The arrival of wind power on a large scale has made this role less relevant and has pushed electricity prices down, eroding profitability of fossil power stations.
Norway's Small Power Grid Operators Face Consolidation
Norway's energy lobby on Wednesday offered its backing to government calls for consolidation among the country's small grid operators but urged regulatory changes to help attract investors. Plans to add more renewable power generation and bolster exports via new interconnectors will require investment in the grid, something the country's more than 140 small regional operators are expected to struggle to fund. A government-sponsored study led by former oil and energy minister…
EDF to Help with Finland Reactor if Areva, TVO End Dispute
French utility EDF would be willing to step in to help finish building the Olkiluoto 3 EPR reactor in Finland, but only if the companies involved in its construction stop fighting over blame for delays and cost overruns. "If they want us to bring our technical expertise, we are ready, but only in an assignment that would be requested by the two parties. We can start once they find an agreement," EDF Chief Executive Henri Proglio said on Thursday after the company posted first-half results. He ruled out mediating between the two sides.
Estonia Plans to Buy Stake in Its Gas Grid
Estonia's government decided on Tuesday to start talks on buying shares in its national gas grid, majority owned by Germany's E.ON and Russia's Gazprom, local media reported. The gas grid company AS EG Vorguteenus is 100 percent owned by a holding company AS Vorguteenus Valdus, which is 37 percent owned by Gazprom and 33.7 percent by E.ON. Finland's Fortum and Itera Latvia have 17.7 and 10 percent respectively. AS EG Vorguteenus was worth around 60 million euros ($82.90 million) at its book value…