11/09/2017

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City Solutions

Pasi Mikkonen, Kalle-Erkki Penttilä

Fortum, operation and compliance with international environment standard - Nordic perspective

Fortum in short

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OAO Fortum

Power generation 25.5 TWh

Heat sales 20.7 TWh

Russia

Nordic countries

Power generation 46.2 TWh

Heat sales 3.7 TWh

Electricity customers 1.3 million

Power generation

Electricity sales

Heat

PolandPower generation 0.6 TWh

Heat sales 3.6 TWh

Baltic countriesPower generation 0.7 TWh

Heat sales 1.3 TWh

IndiaPower generation 29 GWh

Key figures 2016Sales EUR 3.6 bn

Comparable operating profit EUR 0.6 bn

Balance sheet EUR 22 bn

Personnel 9000

Listed on the Helsinki Stock Exchange since 1998

Finnish state is the majority shareholder

Market cap ~13 billion euros

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Fortum has a long term experience in Waste to Energy

• In Scandinavia waste has been

utilized as energy source since late

1960’s• During the oil crisis in 1970 waste

became important fuel for district

heating

• Fortum’s first waste to energy unit

was constructed in 1970 in

Stockholm Sweden

• Today Fortum has 11 waste to

energy units in operation and two

under construction

• In addition Fortum has five high

temperature lines for incineration of

hazardous wasteHögdalen plant in the city of Stockholm

Jelgava

Joensuu

Järvenpää

Espoo

Częstochowa Zabrze

Riihimäki

Kumla

Nyborg

TartuPärnu

Klaipeda

Naantali

Brista

HögdalenVärtan

Fortum ambition is to maximise added value of waste and biomass in its operations

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Järvenpää

Bio-CHP

Brista and

HögdalenCo-owned

Waste CHP

Värtan

Co-ownedBio-CHP

Jelgava

Bio-CHP

Klaipeda

Waste-CHP

Czestochowa

Coal/bio-CHP

Espoo

Heat recovery from water

treatment facility

Espoo

Heat recovery from hospital

(ready 2016)

Joensuu Bio oil

production at CHP

Naantali

Co-ownedMultifuel CHP

(ready 2017)

Espoo

Geothermic DH with St1

(ready 2017)

Zabrze

Waste/coal/bio-CHP

(ready 2018)

Pärnu

Bio-CHP

Riihimäki Waste

Park

Kumla

Waste treatment facility

Nyborg

Biggest hazardous waste unit in

Europe

Espoo

Recovering waste heat from data

centres

Stockholm

Open district heating concept

Finland

Electric vehicles charging poles,

Solar panels

BioCoal-bio WasteOther Co-owned

Jakarta

India

India looking

investments in WtE

Jakarta WtE plant

under development

Sri Lanka

Sri Lanka Waste

Park under development

Oslo

Co-ownedWaste CHP

Oslo

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Growth of household waste follows the economical growth – the biggest challenge today

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Source: Avfall Sverige

prevention

reuse

recycling

recovery

disposal

Non-waste

Waste

Waste-to-Energy (WtE)

Source: The Five-Step Waste Hierarchy in the EU Waste Framework Directive

Landfills

Waste hierarchy in EU Waste Directive- Energy Recovery important part, Landfills as Last Resort

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Negative Impacts of Landfills

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Air Pollution

Emits methane gas

Fauna

Impacted through

consumption of the solid

waste

Soil Pollution

Heavy metal contaminants

trapped below the surface

Uncontrolled Burning

Open burning releases

carbon monoxide and other

contaminant gases

Flora

Impacted by waste, dust,

or smoke from open

burning

Water Pollution

Contamination occurs

when leachate reaches

surface and ground

water

Germany Netherlands Austria Belgium Denmark Sweden

All have introduced landfills bans; only three percent or less currently landfilled

Diverting MSW from landfills could reduce the emission of 92 million tonnes

CO2equ by 2030.

Source: The Climate Change Mitigation Potential of the Waste Sector, Institue for Applied Ecology

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Lesson Learnt from EU Countries

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Development of waste treatment in Sweden- role of energy recovery and material recycling grows

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Source: Avfall Sverige

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Waste to Energy is important part of Circular Economy

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Role of energy recovery

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Comprehensive waste recycling and treatment park

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1 tonneMunicipal Solid Waste

(MSW) =

1 tonneBrown Coal

0.330 tonneCoal

250 litersOil

or

or

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Energy Content of Waste

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WtE in daily life

With 10 kg of waste

you can shower

7 times 5 minutes each

With 10 kg of waste you

can power your laptop

for 3 hours per day for 2

months With 10 kg of waste you

can charge your mobile

phone 5 times

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Three WtE plantsgenerate electricityfor 50 percent of Paris

Directive 2000/76/EC on the incineration of waste makes it one of the most stringently regulated and controlled industrial activities.

Janez Potočnik – Former European Commissioner for Environment

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Source: IED directive and Ministrial Decree of KLHK No. 70/2017

Component (mg/Nm3)

Total particular 10 120

Suplhur dioxide (SO2) 50 210

Nitrogen (NO and NO2) 200 470

Hydrogen chloride (HCl) 10 10

Mercury (Hg) 0.05 3

Carbon monoxide (CO) 50 625

Hydrogen fluoride (HF) 1 2

Dioxins and Furans 0.1 0.1

Sunter WtE plant flue gas treatment system will be designed according to EU Limits

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Emission Limits in EU and Indonesia

Our carbon exposure is among the lowest in Europe

g CO2/kWh electricity, 2015

0

200

400

600

800

1,000

1,200

DE

I

RW

E

Dra

x

SS

E

CE

Z

E.O

N

Vattenfa

ll

ED

P

Enel

Edip

ow

er

EnB

W

Gas N

atu

ral F

EN

GIE

Dong E

nerg

y

Iberd

rola

Fort

um

tota

l

PV

O

ED

F

Verb

und

Fort

um

EU

Sta

tkra

ft

Average 311 g/kWh

Fortum total

62%96%

Fortum in the EU

Fortum’s specific emissions of the power generation

in the EU in 2016 were 28 g/kWh and in total 173

g / k W h

2

1

16

6

Share of CO2-free power in

Fortum’s generation in

2 0 1 6

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Securing good performance of WtE plant

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• Securing of high long term availability and sustainablity requires

– State of art design and high quality critical components

– Long term experience in operation and maintenance of the plant

• Investment cost of WtE plant is typically 2.5 times higher compared to coal firedpower plant with same electrical output

– Waste is difficult, inhomogenious and wet fuel, with low calorific value

– Dimensions is bigger, higher quality materials are and flue gas treatment is more complicated

• Operating cost of WtE plant is several times higher compared to coal fired plant with similar electricity output

– Amount of slag (inert part of waste) is higher increasing disposal cost

– Fly ash from fluegas cleaning contains harmful substances and must be treated properely

– Because of low calorific value of waste support fuel like oil is needed occasionally

• Main income streams for a WtE plant are gate fee and electricity feed in tariff

Long term waste suply and power purchase agreements with proper levels

of gate fee and electricity price are vital for securing good quality of waste to

energy plant and thus facilitating reliable and sustainable waste treatment

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THANK YOU

Sunter 2200 tn/d WtE plant in Jakarta