Fortum plans renewable energy push with Uniper

HELSINKI: Finland’s largest utility Fortum on Thursday said it plans to develop up to 2 gigawats of onshore and solar capacity by 2025 as part of a new carbon neutral strategy that includes its German subsidiary Uniper.

Fortum, which has secured a 75% stake in Uniper following a long-running takeover tussle, also outlined deal synergies for the first time, expecting annual benefits of over 50 million euros ($61 million) by end-2023 and about 100 million in 2025.

As part of the strategy update, Fortum said that the goal for the combined group was to be carbon neutral in its European generation by 2035 and in all its operations by 2050.

State-controlled Fortum has agreed to keep Uniper separately listed until the end of 2021 at least. It had sought control of the German energy firm since 2017 and overcame a final ownership hurdle in March ater years of resistance.

“Building on the strengths of both companies, our future growth will be driven by Co2-free power generation and clean gas,” Markus Rauramo, Fortum’s CEO since June, said.

Uniper is already planning to be carbon neutral in its European generation by 2035. The target does not include Russia, where the firm operates more than 11 gigawats of coal- and gas-fired capacity via its subsidiary Unipro.

Fortum also said it will initiate a strategic review of its consumer business, which is responsible for electricity and gas retail businesses in the Nordics, Poland and Spain. The business made a core profit of 141 million euros in 2019, it said.