OREANDA-NEWS. March 13, 2012. In Vilnius UAB Fortum Heat Lietuva and Lietuvos energija, AB signed the letter of intent as concerning an investment project with the purpose to design, build, and operate cogeneration power plant in Vilnius City. It is planned that a new power plant will have about 50 MW electrical and about 110 MW thermal capacity as well as use biomass and such other fuel of local origin.  The value of the project may amount to approximately Euro 200 million.

The National Energy Strategy provides for the promotion of heat and electricity generation from local and renewable sources of energy, thereby diversifying the types of fuel used.

In accordance with this letter of intent, the initial stage of the project covers the search for the land plot, preparation of study of fuel supply for the power plant, feasibility study, and pre-design study, project development plan with strategic environmental impact assessment, as well as preparation and approval of the power plant environmental impact assessment program.

According to CEOof Lietuvos energija Dalius Misiunas, “The development of the renewable sources of energy and heat production is one of the top strategic priorities for Lietuvos energija. Fortum is a strong business partner that has solid experience in implementation of heat and power production development projects. We believe that joint efforts of two leading companies in the energy industry will result in successful development of the project, which will further contribute to the creation of a competitive market of heat and energy production in Vilnius”.

According to Vitalijus Zuta, General Manager of Fortum Heat Lietuva, this letter of intent once again declares the strategic interest of the company to invest, create, and appear on competitive market, which is currently under formation both in Lithuania and all three Baltic countries. “We see a potential, an empty market niche, and a need for quality eco-friendly heating services. We implement successful projects in Kaunas, Klaipeda, Joniskis, Svencionys, and we are interested to act in the capital city as well”,- indicates Vitalijus Zuta.

Fortum

Fortum’s purpose is to create energy that improves life for present and future generations. The company provides sustainable solutions that fulfill the needs for low emissions, resource-efficiency and energy security, and deliver excellent value to our shareholders. Fortum’s activities cover the generation, distribution and sales of electricity and heat as well as related expert services.

Fortum’s operations focus on the Nordic countries, Russia, Poland and Baltic Rim area. In the future, the integrating European and fast-growing Asian energy markets provide additional growth opportunities. In 2011, Fortum’s sales totaled EUR 6.2 billion and comparable operating profit was EUR 1.8 billion. Fortum employs approximately 10,800 people. The company’s shares are quoted on NASDAQ OMX Helsinki.