Fortum Ends Use of Coal in Russia With Sale of Argayash Coal-Fired Heat and Power Plant

By Dominic Chopping

Finnish state-controlled utility company Fortum Oyj said Thursday that it has agreed to sell its Argayash coal-fired combined heat and power plant in the Chelyabinsk region of Russia to AO JSC Rusatom Smart Utilities, marking an end to its use of coal in the country.

"For Fortum, the sale of the plant is an important step in optimizing our asset portfolio as part of Fortum's strategy, which targets carbon neutrality by 2050," said Alexander Chuvaev, Executive Vice President of Fortum's Russia Division.

"This step, together with transition to gas at the Chelyabinsk CHP-2, will allow the Russia Division to discontinue its use of coal by the end of 2022 and reduce annual carbon dioxide emissions by approximately 2 million [metric] tons."

Fortum said the power plant has only had a minor effect on its earnings before interest, tax, depreciation and amortization and the parties have agreed not to disclose the sales price.

The transaction is expected to be closed in the third quarter of 2021.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

07-08-21 0401ET