Fortum to sell 50% ownership in district heating company

Fortum has agreed to sell its 50% ownership in Norwegian district heating company Fortum Oslo Varme.

Fortum Oslo Varme is jointly owned (50/50) by Fortum and the City of Oslo. It is the largest supplier of district heating in Norway and supplied 36% of district heating generated in the country last year. It sold 1.8 TWh of district heating and generated 0.1 TWh of electricity with a comparable EBIDTA of €88 million.

The company’s waste-to-energy plant in Klemetsrud, Oslo, is Norway’s largest, with a capacity to treat 315,000 tonnes of waste annually. It employs around 200 people.

Fortum’s 50% ownership will be sold to an investor consortium comprising Hafslund Eco, Infranode and HitecVision. The total consideration for Fortum’s share is approximately NOK 10 billion (€1 billion).

In recent years, Fortum has divested several of its heating and cooling businesses. In 2020, Fortum divested its district heating businesses in Joensuu and Järvenpää in Finland and in 2021, the company sold its district heating businesses in the Baltics and its 50% ownership in Stockholm Exergi in Sweden.

“We have had a strong partnership with the City of Oslo, combining competencies to drive innovation for a greener Oslo,” said Markus Rauramo, president and CEO of Fortum.

“Fortum Oslo Varme has ambitious plans for its Klemetsrud waste-to-energy plant to implement CCS as one important technology to combat climate change.

“Fortum Oslo Varme is a well-run business so after the Hafslund Eco-led consortium approached us, we considered our options carefully. Our conclusion is that it is of best interest of Fortum Oslo Varme to continue its good development under the new ownership known for its sustainable hydropower and long-term investments in infrastructure in Northern Europe.”

Hafslund Eco’s CEO, Bjørn Ruyter, commented: “Fortum Oslo Varme is an innovative and successful company and its heating and cooling operations fit very well with Hafslund Eco’s renewable generation and infrastructure portfolio.

“We believe that combining the great competences of Fortum Oslo Varme with Hafslund Eco’s competence and experience within renewable energy and the Nordic power market will create exciting opportunities for sustainable growth.”

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