Fortum has agreed to sell its UK-based subsidiary Grangemouth CHP Limited to its long term customer INEOS Industries Holdings Ltd. Grangemouth CHP Limited owns and operates a natural gas-fired combined heat and power (CHP) plant located at Grangemouth in Scotland.
Commissioned in 2001, the Grangemouth power plant's power generation capacity is 145 megawatts (MW) and heat generation capacity 257 MW. It provides electricity and steam to INEOS’ petrochemical and refining plant. Excess electricity is sold to the national grid. Fortum will continue to provide operations and maintenance (O&M) services at the power plant.
"The Grangemouth CHP plant is a highly efficient and modern power plant, and as INEOS has a long term plan to develop the Grangemouth site, this was a good opportunity for both companies. We look forward to continuing our good cooperation with INEOS by providing O&M services at the site", says Sasu Valkamo, Vice President, Nuclear and Thermal Power Division at Fortum.
The total sales price is approximately GBP 54 million (corresponding to approximately EUR 70 million). The sale has a positive impact on Fortum's Power and Technology segment's financial performance, and the final sales gain will be booked in the segment's fourth quarter 2014 results.
The transaction is part of Fortum’s efficiency programme launched in October 2012 and aiming at the disposal of non-core assets. The core of Fortum’s strategy lies in our strong expertise in CO2-free hydro and nuclear power and resource-efficient combined heat and power production. We operate in the energy markets of our geographical home, and develop our electricity sales by providing innovative customer offerings for smarter energy use.