Fortum Oslo Varme’s CCS projectFrom waste to energy to negative emissions

Jannicke Gerner Bjerkås

Director CCS

Fortum Oslo Varme

Fortum’s geographical footprint

5

Key figures 2019

Sales EUR 5.4 bn

Comparable

EBITDA EUR 1.8 bn

Total assets EUR 23 bn

Personnel 8,200

Nordics

69%

Sales by market area 2019

Russia

20%

Poland

7%

Other 4%

EUR

5.4 bn

Note: Ranking based on year 2018 pro forma figures

Source: Fortum, company data, shares of the largest actors

Nordic countries

Power generation

45.5 TWh

Heat sales

5.9 TWh

Electricity customers

2.3 million

Russia

PAO Fortum

Power generation

29.3 TWh

Heat sales

16.9 TWh

Poland

Power generation

0.6 TWh

Heat sales

3.3 TWh

Baltic countries

Power generation

0.7 TWh

Heat sales

1.5 TWh

#3

#1

#5 #10

#7

x = Fortum market share ranking

3

Future circular economy with CO2 handling

Figure: Årim

USE (CCU)

STORAGE (CCS)

Circular

economy

Raw

materials

Pro

du

ctio

n

/rep

rod

uc

tion

75 % EMISSIONS REDUCTION

COMPARED TO LANDFILLING

Goal to capture about 400 000 tons CO2 per

year, 90% cleaning of CO2

CCS at Waste-to-Energy plants will capture

both fossil and biological CO2 (50 % BIOCCS)

CO2 transport to port via emission free cars

Successful pilot testing on real flue gas;

5500 testhours, up to 95 % capture

Technology supplier with full-scale experience

(Shell), EPC contractor TechnipFMC

Carbon Capture in Oslo

5

Project timeline – new alternative introduced

Final bid from

FOV to the StateFinal FEED-

report

20. April 202031.10.19

Q3/Q4

2022?

Start of

operations

Final investment

decision in the

Norwegian Parliament

01.01.21

2026/2027?

Final result

Innovation Fund?

Q4 2021

Final FOV

investment decision

10. June 2020 Q4 2020

Execution start date if

positive investment

decision

Opening First Call

Innovation Fund

06/07.2020

Estimated deadline

Innovation Fund

Oct. 2020

Execution start date if

positive investment

decision I.F/Norw.

State/FOV

01.08.2024

Start of

operations

➢ Same overall goal, but different criteria and parametres

➢ Increased uncertainty and risk related to delay

CCUS and decarbonization initiatives in Fortum

6

Oslo Stockholm

Zabrze

Oslo

Klaipėda

Stockholm

Lithuania and Poland

New initiatives in the WtE industry, outside Fortum

7

• Norway:

• Borg CO₂ has started feasibility studies

• Statkraft Varme has started studies on CCS

• Returkraft received funding for feasibility studies

• BIR is studying the usage of CO₂ for producing a carbon fibre product

• FORUS starting CCUS studies

• Denmark: (Copenhagen)

• Amager Resource Center has started studies

• Væstforbrending is starting studies

• Sweden:

• SYSAV and RENOVA has started studies

• Netherlands:

• TWENCE 100 000 tons of CO₂ annually from spring 2021

• AVR will capture and recycle 60 000-100 000 tons CO₂

• Germany: EEW planning CCUS studies and pilot operation

• UK: DRAX testing CO₂ capture and BECCS at their bioenergy plant

• Switzerland: Infrastructure for CCS in WtE planned within 2028-2029

• Our unique technical and industrial advantages:

– Operationalization and standardization directly transferable to other facilities and cities in Norway and Europe

– BIOCCS is becoming more and more important -CCS on Waste-to-Energy will in practice remove CO2 from the atmosphere

– The Fortum project shows how cities can reduce emissions from waste management as part of sustainable urban solutions, and close the cycle in a circular economy

– Utilizes the heat from the capture process back into the district heating system

– Demonstrates capture of CO2 transport to port -relevant to many emission points in Norway and Europe

– CCS on Waste-to-Energy can cut large emissions outside the quota sector, as defined in “Klimakur2030”

8

Large potential in an international perspective

Join the change!