In line with Fortum’s strategic priorities, we focus on delivering reliable clean energy and driving decarbonisation in industries. Fortum is committed to exit all coal-based generation by the end of 2027. In sites where we still use coal, we do so efficiently and responsibly.
In 2023, coal account only for about 1% of our combined power generation. Fortum uses hard coal in Finland and in Poland.
Further information about fuel use by country is available on Sustainability 2023 Report.
Fortum’s coal use in Finland
In Finland, coal is used at the Suomenoja combined heat and power (CHP) plant and Meri-Pori power plant, and at Fortum’s co-owned Naantali CHP plant.
Fortum will discontinue the use of coal at the Suomenoja CHP plant in Espoo in 2024. Fortum and the City of Espoo have together committed to developing Espoo’s district heating to be carbon-neutral in the 2020s in the Espoo Clean Heat project.
Fortum’s coal use in Poland
In Poland, coal is used at the combined heat and power plants and the heat-only boiler plants in Czestochowa and in Zabrze. The Czestochowa CHP plant also uses biofuels, and at the Zabrze plant the use of coal is supplemented with refuse-derived fuel (RDF).
We will gradually phase out coal
Examples of the coal phase-out
- In Finland, Fortum and Microsoft have announced a collaboration project, whereby Fortum will capture the excess heat generated by a new data centre region to be built by Microsoft in the Helsinki metropolitan area in Finland. Once the waste heat capture is in operation, it will produce heating energy for homes, services and businesses and will supply a total of about 40% of the district heating demand in the cities of Espoo and Kauniainen and the municipality of Kirkkonummi.
- In Wrocław, Poland, the construction of Poland’s biggest heat pump plant is ongoing. When completed in 2024, it will cover up to 5 per cent of the annual demand of district heating customers in Wrocław.
Reducing environmental impacts
We take the environmental impacts of coal seriously. In addition to carbon emissions, the use of fuels also produces, e.g., sulphur dioxide, nitrogen oxide and particle emissions that impair air quality, and cause acidification of soil and water systems. Flue-gas emissions can be reduced effectively with various technology solutions and flue-gas cleaning technologies. All our power plants operate in compliance with environmental permit conditions.
Responsible fuel procurement
Following Russia’s attack and the war in Ukraine, Fortum looked for alternative sources to ensure security of supply. Majority of the coal purchased in 2023 originated from Poland, and additionally from Colombia and South Africa. All coal purchased from Colombia was from Bettercoal producers.
Bettercoal’s requirements are based on the Bettercoal Code, which covers good governance, legal compliance, human rights and social performance, and environmental performance including biodiversity, among other things. Bettercoal’s assessment programme includes the coal supplier’s sustainability policies and management systems, self assessment, and an independent assessment of mining operations.
Based on the assessment, a Continuous Improvement Plan (CIP) is made for suppliers; the realisation of the plan is monitored by Bettercoal regularly. A new assessment is done every five years. If a coal supplier committed to Bettercoal violates its commitments and fails to implement corrective measures within a reasonable time, Bettercoal can initiate measures to disassociate the supplier. In such case, the supplier forfeits its Bettercoal supplier status.
Bettercoal has established working groups to support its operations in significant coal procurement countries: Colombia and South Africa. Fortum participates in both working groups. The working groups’ reports are published on the Bettercoal website. The particular focus in Colombia is to work on stakeholders (government, companies, trade unions and local communities) to support the transition of Colombian mining regions towards a more diversified local economy and to reduce the potential negative impacts of a decline in coal demand. The agenda of the working group also includes issues related to access to clean water for local communities.
Bettercoal member companies, like Fortum are required to annually report on the use of coal and on how the Bettercoal supplier assessment process has been integrated in their coal procurements. Every member company must also annually define commitments to advance the Bettercoal principles and processes.
