Sustainable energy to rely on Jenny Dahlberg Fortum

1
Sustainable energy to rely onJenny Dahlberg
Fortum
2
Fortum- your energy partner
Fortum is a leading energy company with 14 000
employees focusing on the Nordic countries,
Russia and the Baltic Rim area. Position in
the nordic market 1 Distribution 1
District heating 1 District cooling 1
Electricity sales 2 Power generation
3
Fortum has one of the lowest CO2 emissons in
Europe
CO2 emissions European companies
g/kWh
Källa PWC och Enerpresse 2005
4
Electricity distribution

• The power supply in the Stockholm area consists
  of a 220 kV ring structure, owned by Fortum
• Five primary substations
• Fortum is capable of delivering 220-33 kV system
  voltage all around Stockholm
• Fortum can supply the electricity with redundancy
  from local elctricity production

5
Procurement of electricity

• Physical delivery of electricity used in your
  daily operation
• Price risk
• Volume risk (operational)
• Political risk
• Financial hedging of purchase price to secure
  your business result
• Customise purchasing and portfolio strategy
• Customise risk manual according to risk policy
• Trade with physical and financial contracts

6
Guaranties of origin from renewable energy
sources
Certificate market
Electricity Market (NordPool)

RES Demand
RES Supply
Issuingbody
Auditor
Issuing Registration
Redeeming
Certificate system
7
District heating - an environmental success story
Fortum's reduced emissions in Stockholm since
1980
-60 of CO2 gt95 of SO2 gt80 of NOx
70 renewable fuels
8
District heating
For Data centers the need for heating is minimal
and Fortum can, instead, buy surplus heat from
the centers
8
9
District cooling in Stockholm - largest in Europe
570 points of deliveries 350 MW capacity 400 GWh
production/year 170 GWh sept-april deliveries
from 8 kW to 11 MW
10
District cooling- This is how it works
4
3
2
1

• Cold water from the bottom of the sea is used to
  cool down the DC (district cooling) water that
  circulates in a closed loop. The sea water is
  then returned to the sea.
• The heat in the warmer water in the DC return
  pipe can be recovered to the DH system via heat
  pumps. By this simultaneous heating and cooling
  all energy in the cooling system will be
  recovered.
• During the nights when there is excess capacity
  from free or waste cooling production the storage
  is used.
• The low temperature in the DC system is
  transferred to the internal system in the
  connected buildings. The internal systems are
  then distributing the cooling capacity within the
  buildings.

11
Why District cooling?

• Low intitial investment cost ( -75 )
• Minimal operation and maintenance costs ( -90 )
• Reduces the electricity consumtion (- 95)
• Reduces the need of cooling water (-100 )
• Reduces the space needed for installations
• Realiable delivery - availibility of 99,7
• Low financial risk- up to ten year individual
  contract
• District cooling is climate neutral - increases
  the environmental profile of the facility

12
Clients with critical cooling needs

• In Kista, the "Silicon Valley of Sweden" -
  approx. 60 of all district
• cooling energy is used for server halls.
• Approx. 50 of all district cooling clients in
  Stockholm also use
• district cooling for local server halls in office
  buildings.
• Other examples of clients
• DNEX - printing plant
• Stockholm Globe Arenas - concert arenas for up to
  44 000 visitors
• TV4 - television production broadcasting
  company
• Stockholm International Fair - 70 000 sq.m of
  exhibition area
• Karolinska Institutet - medical lab

13
District cooling - Still growing

• Expansion driven by client demands. The
  distribution net expands with growing need för
  capacity. The production is increased with
  minimum affect on the environment.
• Fortum Värme has the knowledge and technique to
  build new production sites and distribution
  system if there is a increased demand in the
  market.
• The choice of method of production depends on
  local conditions

14
Current project - cold water storage in Hornsberg
To increase the capacity in Stockholm, a 40 000
m3 cold water storage is being built. It will be
taken in operation in november 2009 and used as a
day and night storage.
15
IBM and Fortum, a fruitful collaboration

• IBM and Fortum has a long relationship.
• In Kista, IBM has sold surplus heat, from their
  data center, to Fortum since 1997. Together we
  can make use of energy that would otherwise be
  wasted.
• In 2008, district cooling was installed at the
  IBM data center

16
IBM - thinking green

• Since 1967, IBM has had a corporate policy of
  protecting the environment and conserving energy
• 1997, IBM became the world's first major
  multinational to have earned a single worldwide
  registration to the ISO 14001 Environmental
  Management System (EMS) standard.

17
IBM Chosing district cooling- questions

• A choice of technique not previously known to
  the owners
• - IBM in Sweden, together with Fortum informed
  about the simplicity
• and reliability of the technique
• How would the maintenance time be affected?
• -The maintenance time will be reduced due to less
  complicated technique
• How reliable is district cooling?
• - Fortum guarantees full delivery of district
  cooling 99,7 of the year.
• If a shut down is necessary, Fortum have a dialog
  with the client.
• Back up systems are needed though, as with all
  types of cooling.

18
IBM Chosing district cooling

• The main reasons for IBM to chose district
  cooling were
• environmental issues
• less maintenance
• better economy

19
Cooling and heating - make it climate neutral
today

• District cooling from Fortum is climate neutral
  today
• Fortums vision is to also have a climate neutral
  production of district heating in 2020
• In the mean time - customers can purchase climate
  neutralisation of their use of district heating
• For the percentage of production that is not
  climate neutral today, we compensate with
  CDM-projects.
• CDM - Clean Delevopment Mechanism is CO2 -
  reducing projects defined by the Kyoto Protocol
  and the Framework Convention on Climate Change
• CDM - projects are made in countries that lack a
  sustainable energy solution.

20
Conclusion

• Fortum - your energy partner for data centers
• Electricity distribution
• Procurement of electricity
• Procurement of certificates for renewable
  electricity
• District heating
• District cooling
• Purchasing of surplus heat
• Making your data center climate neutral

21
Thank you for your time
Questions? contact information jenny.dahlber
g_at_fortum.com 46(8)671 84 22