Finland's Fortum Bets on Fledgling Russian Wind Power Market
Finnish utility Fortum is hoping to attract financial partners for its new wind and solar projects in Russia, where it aims to capitalise on its decade-long presence in the country to expand in renewables.This approach is similar to moves by Denmark's Orsted , the world's largest owner of offshore wind power sites, which also has sold off large stakes in wind farms to invest the capital in new projects.Earlier this month, Fortum sold 54 percent of its Indian solar portfolio…
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.
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.
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.
Fortum Eyes More M&A With Unspent Uniper Cash
Finland's Fortum, which failed last month in its bid to win majority control of Germany's Uniper, is now considering other acquisitions, Chief Executive Pekka Lundmark said on Thursday. After selling its distribution networks in 2015, state-controlled Fortum was left with about 10 billion euros in cash, much of which the company has said it could use for acquisitions. Fortum received only a 47-percent stake in Uniper after bidding 8.05 billion euros ($9.80 billion) for a 100-percent stake.
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…
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
Finland's TVO Says Areva Ended Talks on Delayed Reactor Project
French nuclear group Areva has broken off talks with Finnish utility Teollisuuden Voima (TVO) over the delayed Olkiluoto 3 nuclear reactor, TVO said on Thursday. An Areva-Siemens consortium and TVO are seeking billions of euros from one another over delays and cost overruns on the reactor originally planned to start operating in 2009 but now expected to open in 2018. "We believed that we were close to solutions, but the French side broke off the talks," TVO spokeswoman Anna Lehtiranta said.
Nordic Power Prices Seen Rebounding Strongly after 2020
Nordic forward power contracts are undervalued and likely to rebound strongly after 2020 after remaining low until the end of this decade, an Oslo-based THEMA consultancy said on Tuesday. Nordic average power prices fell to a 15-year low of 21 euros per megawatt-hour (MWh) last year, hitting the revenues of Nordic utilities Fortum, Vattenfall, Statkraft and Dong Energy. However, THEMA said medium-term forward prices have fallen over the last two years more than is justified by the drop in fuel and carbon emissions prices.
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.
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.
Russian Nuclear Project in Finland Stalls Over Croatia Investor
Plans to build a Russian nuclear reactor in Finland suffered a setback on Thursday after the government said its probe into the ownership of a Croatian investor pointed to Russia. Helsinki has called on the Fennovoima consortium to ensure at least 60 percent European ownership before it approves plans by Russia's Rosatom to build the 1,200-megawatt reactor. "It has not been possible to adequately verify that factual control in the company Migrit Solarna Energija is held by parties residing or domiciled in EU or EFTA (European Free Trade Association) countries…
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…
Hungarian-led Consortium Still Interested in Enel's Slovak Utility Stake
A Hungarian-led consortium is still interested in bidding for Enel's majority stake in the main Slovak electricity producer, the head of one of the companies in the group said on Thursday. The comment comes after Slovak Prime Minister Robert Fico said last week that the state, which owns 34 percent of Enel's Slovenske Elektrarne, would "actively obstruct" a sale because of uncompleted units at the Mochovce nuclear power plant. Oszkar Vilagi, head of Slovak oil refiner Slovnaft…
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.
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.
Sweden Doubles Waste Fee for Nuclear Power Plants
Sweden's government has decided to almost double a fee nuclear power plant operators pay to the nuclear waste fund, in order to help it cover the rising costs of decommissioning, the environment ministry said on Thursday. Sweden's state-owned utility Vattenfall operates Forsmark and Ringhals power plants, and Germany's E.ON operates Oskarshamn plant. Finnish utility Fortum , which operates Loviisa power plant, also has stakes in Forsmark and Oskarshamn. The nuclear industry will have to pay 0.04 Swedish crowns per kilowatt-hour from 2015-2017…
Russian Power Exports Rise to Finland as Rouble Falls
Finland's imports of Russian power are on the rise on the back of the plunging rouble, and could increase further as the Nordic country's grid operator seeks to capitalise on cheaper prices. Power imports from Russia to Finland increased to 1,400 megawatts (MW) during peak hours on Thursday, the maximum transmission capacity available. The hourly average rose to 1,050 MW, the highest since Jan. 27, 2013, data from Finland's transmission system operator Fingrid showed. "We think this is happening because of the Russian currency change…
Vattenfall Puts Nuclear Plans on Hold
Sweden's Vattenfall will drop plans to build new nuclear reactors because a new government, which includes the Green Party, doesn't support them, the company said on Friday. The previous centre-right government overturned a policy of phasing out nuclear power, allowing for the replacement of the country's ageing 10 reactors. That led Vattenfall to apply to the regulator to replace one or two reactors. "The new government has signalled that we have to stop analysing options for building new nuclear reactors…
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.