Fortum to discontinue Meri-Pori CCS project 4 November 2010 4 November 2010

For the past couple of years Fortum and Teollisuuden Voima (TVO) have collaborated on the Finncap project, the aim of which has been to build a large-scale demonstration plant for carbon capture and storage at the two companies' jointly-owned Meri-Pori power plant.

Based on studies that have been carried out and on the company's updated strategy, Fortum has now decided to discontinue the project. Consequently, the Finncap project will no longer be part of the European Union's CCS demonstration programme, the application period for which will begin soon. TVO withdrew from the project earlier this autumn.

The technological and financial risks related to the project also contributed to Fortum's decision. Acceptance into the EU programme would have covered only a portion of the costs of the approximately EUR 500-million project. In addition to EU funding, the project would have required national funding from Finland and significant investments from the companies participating in it.

”Finncap has been one of the biggest and most progressive CCS research projects in the world. According to Fortum's updated strategy, coal condensing is not within the core of the company's operations; in light of this the risks grew too extensive”, said Matti Ruotsala, executive vp of Fortum's Power division.

”For these reasons we cannot continue the project. According to our strategy, we focus on carbon dioxide-free hydro and nuclear power, as well as resource efficient combined heat and power production. However, Fortum will actively monitor the development of CCS technology by participating in various projects in collaboration with other players in the sector".