1. Sustainable energy to rely on Jenny Dahlberg Fortum

2. Fortum- your energy partner
Fortum is a leading energy company with
employees focusing on the Nordic countries,
Russia and the Baltic Rim area.
Position in the nordic market
# 1 Distribution
# 1 District heating
# 1 District cooling
# 1 Electricity sales
# 2 Power generation

3. Fortum has one of the lowest CO2 emissons in Europe
CO2 emissions – European companies
g/kWh
Elsam
200
400
600
800
1,000
1,200
DEI
Drax
RWE
Energi E2
EDP
Union Fenosa
CEZ
Edison
Endesa
Scottish& Southern
Essent
ENEL
E.ON
Vattenfall
Electrabel
PVO
Iberdrola
Verbund
Fortum
British Energy
EDF
Statkraft
Källa: PWC och Enerpresse 2005

4. Electricity distribution
The power supply in the Stockholm area consists of a 220 kV ring structure, owned by Fortum
Five primary substations
Fortum is capable of delivering kV system voltage all around Stockholm
Fortum can supply the electricity with redundancy from local elctricity production

5. Procurement of electricity
Physical delivery of electricity – used in your daily operation
Price risk
Volume risk (operational)
Political risk
Financial hedging of purchase price – to secure your business result
Customise purchasing and portfolio strategy
Customise risk manual according to risk policy
Trade with physical and financial contracts

6. Guaranties of origin from renewable energy sources
Certificate market
Electricity Market (NordPool)
RES Demand
RES Supply
Issuing body
Auditor
Issuing Registration Redeeming
Certificate system

7. District heating - an environmental success story
Fortum's reduced emissions in Stockholm since 1980:
-60 % of CO >95 % of SO >80 % of NOx
70 % renewable fuels

8. District heating
Sverigepresentation
For Data centers the need for heating is minimal and Fortum can, instead, buy
surplus heat from the centers 8
Fortum 8

9. District cooling in Stockholm - largest in Europe
570 points of deliveries
350 MW capacity
400 GWh production/year
170 GWh sept-april
deliveries from 8 kW to 11 MW

10. District cooling- This is how it works4 3 2 1
Cold water from the bottom of the sea is used to cool down the DC (district cooling) water that circulates in a closed loop. The sea water is then returned to the sea.
The heat in the warmer water in the DC return pipe can be recovered to the DH system via heat pumps. By this simultaneous heating and cooling all energy in the cooling system will be recovered.
During the nights when there is excess capacity from free or waste cooling production the storage is used.
The low temperature in the DC system is transferred to the internal system in the connected buildings. The internal systems are then distributing the cooling capacity within the buildings.

11. Why District cooling? Low intitial investment cost ( -75 %)
Minimal operation and maintenance costs ( -90 %)
Reduces the electricity consumtion (- 95%)
Reduces the need of cooling water (-100 %)
Reduces the space needed for installations
Realiable delivery - availibility of 99,7%
Low financial risk- up to ten year individual contract
District cooling is climate neutral - increases the environmental profile of the facility

12. Clients with critical cooling needs
In Kista, the "Silicon Valley of Sweden" - approx. 60 % of all district
cooling energy is used for server halls.
Approx. 50 % of all district cooling clients in Stockholm also use
district cooling for local server halls in office buildings.
Other examples of clients:
DNEX - printing plant
Stockholm Globe Arenas - concert arenas for up to visitors
TV4 - television production & broadcasting company
Stockholm International Fair sq.m of exhibition area
Karolinska Institutet - medical lab

13. District cooling - Still growing
Expansion driven by client demands. The distribution net expands with growing need för capacity. The production is increased with minimum affect on the environment.
Fortum Värme has the knowledge and technique to build new production sites and distribution system if there is a increased demand in the market.
The choice of method of production depends on local conditions

14. Current project - cold water storage in Hornsberg
To increase the capacity in Stockholm, a m3 cold water storage is being built. It will be taken in operation in november 2009 and used as a day and night storage.

15. IBM and Fortum, a fruitful collaboration
IBM and Fortum has a long relationship.
In Kista, IBM has sold surplus heat, from their data center, to Fortum since Together we can make use of energy that would otherwise be wasted.
In 2008, district cooling was installed at the IBM data center

16. IBM - thinking green
Since 1967, IBM has had a corporate policy of protecting the environment and conserving energy
1997, IBM became the world's first major multinational to have earned a single worldwide registration to the ISO Environmental Management System (EMS) standard.

17. IBM Chosing district cooling- questions
A choice of technique not previously known to the owners
- IBM in Sweden, together with Fortum informed about the simplicity
and reliability of the technique
How would the maintenance time be affected?
-The maintenance time will be reduced due to less complicated technique
How reliable is district cooling?
- Fortum guarantees full delivery of district cooling 99,7% of the year.
If a shut down is necessary, Fortum have a dialog with the client.
Back up systems are needed though, as with all types of cooling.

18. IBM Chosing district cooling
The main reasons for IBM to chose district cooling were:
environmental issues
less maintenance
better economy

19. Cooling and heating - make it climate neutral today
District cooling from Fortum is climate neutral today
Fortum´s vision is to also have a climate neutral production of district heating in 2020
In the mean time - customers can purchase climate neutralisation of their use of district heating
For the percentage of production that is not climate neutral today, we compensate with CDM-projects.
CDM - Clean Delevopment Mechanism is CO2 - reducing projects defined by the Kyoto Protocol and the Framework Convention on Climate Change
CDM - projects are made in countries that lack a sustainable energy solution.

20. Conclusion Fortum - your energy partner for data centers
Electricity distribution
Procurement of electricity
Procurement of certificates for renewable electricity
District heating
District cooling
Purchasing of surplus heat
Making your data center climate neutral

21. Thank you for your time Questions?
Sverigepresentation
Thank you for your time
Questions?
contact information:
+46(8)
Fortum 21