Fortum to divest share in cogeneration business

22 October 2008 – Finnish utility Fortum is to sell its 60 per cent stake in Jyväskylän Energiantuotanto Oy to Jyväskylän Energia in a deal worth €40m ($51m).

Jyväskylän Energiantuotanto Oy produces and sells heat and electricity to its owners. The company’s electricity production capacity is 115 MW, district heating capacity 610 MW and steam production capacity 110 MW.

Currently, Jyväskylän Energia owns 40 per cent of Jyväskylän Energiantuotanto Oy.

The sales gain from the transaction will be booked in Fortum’s 2008 fourth quarter financial results, and the transaction will take effect on 1 January 2009.

According to a company announcement, the divestment is part of the business development programme of Fortum’s Heat segment, which aims to ensure long-term profitability of the segment.