Sustainable energy gyto rely on

Jenny Dahlberg Fortum

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Fortum- your energy partner

Fortum is a leading energy company with 14 000 l f i th N di t i14 000 employees focusing on the Nordic countries, Russia and the Baltic Rim area.

Position in the nordic market

# 1 Distribution# 1 Distribution# 1 District heating# 1 District cooling# 1 El t i it l# 1 Electricity sales# 2 Power generation

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Fortum has one of the lowest CO2 emissons in Europe

CO2 emissions – European companies

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Källa: PWC och Enerpresse 2005

Electricity distribution

The power supply in the Stockholm area consists of a 220 kV ring structure owned by Fortumstructure, owned by FortumFive primary substations Fortum is capable of delivering 220-33 kV system voltage all

d St kh laround StockholmFortum can supply the electricity with redundancy from local elctricity production

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Procurement of electricity

• Physical delivery of electricity – used in your daily operationoperation

–Price risk–Volume risk (operational)Volume risk (operational)–Political risk

Fi i l h d i f h i t• Financial hedging of purchase price – to secure your business result

–Customise purchasing and portfolio strategyp g p gy–Customise risk manual according to risk policy–Trade with physical and financial contracts

Guaranties of origin from renewable energy sources

Certificate marketCertificate market

RES Supply RES Demand

Electricity Market (NordPool)

Certificate system

Issuingbody Issuing Registration Redeeming

Auditor

Certificate system

District heating - an environmental success story

Fortum's reduced emissions in Stockholm since 1980:-60 % of CO2 >95 % of SO2 >80 % of NOx60 % of CO2 >95 % of SO2 >80 % of NOx

70 % renewable fuels

3%

16%14%

Sea Waste

11% 12%

Industrial wasteSolid bio fuelsBio oilElectricity

13%

22%

9%ElectricityFossile oilCarbon

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District heating

For Data centers the need for heating is minimal and Fortum can, instead, buy surplus heat from the centers

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District cooling in Stockholm - largest in Europe

570 points of deliveries350 MW capacityp y400 GWh production/year170 GWh sept-april deliveries from 8 kW to 11 MW

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District cooling- This is how it works

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1. Cold water from the bottom of the sea is used to cool down the DC (district cooling) water that circulates in a closeThe sea water is then returned to the sea.

2 The heat in the warmer water in the DC return pipe can be recovered to the DH system via heat pumps2. 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.

3. During the nights when there is excess capacity from free or waste cooling production the storage is used. 4. 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.

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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 need of cooling water ( 100 %)Reduces the space needed for installationsRealiable delivery - availibility of 99,7% Low financial risk- up to ten year individual contractDistrict cooling is climate neutral - increases the environmental profile of the facilityp o e o t e ac ty

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Clients with critical cooling needs

In Kista, the "Silicon Valley of Sweden" - approx. 60 % of all districtcooling 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 buildingsdistrict cooling for local server halls in office buildings.

Other examples of clients:DNEX - printing plantStockholm Globe Arenas - concert arenas for up to 44 000 visitorsTV4 television production & broadcasting companyTV4 - television production & broadcasting companyStockholm International Fair - 70 000 sq.m of exhibition areaKarolinska Institutet - medical lab

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District cooling - Still growing

• Expansion driven by client demands. The distribution net expands with growing need för capacity The production is increased withwith growing need för capacity. The production is increased with minimum affect on the environment.

F t Vä h th k l d d t h i t b ild• 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

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Current project - cold water storage in HornsbergTo 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.

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IBM and Fortum, a fruitful collaboration

IBM and Fortum has a long relationship.g p

In Kista, IBM has sold surplus heat, from their data center, to Fortum since 1997 Together we can make use of energy thatFortum 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

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IBM - thinking green

Since 1967, IBM has had a corporate policy of protecting the environment and conserving energyenvironment and conserving energy

1997, IBM became the world's first major multinational to have d i l ld id i t ti t th ISO 14001earned a single worldwide registration to the ISO 14001

Environmental Management System (EMS) standard.

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IBM Chosing district cooling- questions

A choice of technique not previously known to the ownersIBM i S d t th ith F t i f d b t th i li it- IBM in Sweden, together with Fortum informed about the simplicity

and reliability of the technique

H ld th i t ti b ff t d?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.

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IBM Chosing district cooling

The main reasons for IBM to chose district cooling were:

environmental issuesless maintenanceless maintenancebetter economy

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Cooling and heating - make it climate neutral today

District cooling from Fortum is climate neutral todayFortum´s vision is to also have a climate neutral production of o u s s o s o a so a e a c a e eu a p oduc o odistrict heating in 2020In the mean time - customers can purchase climate neutralisation of their use of district heatingof their use of district heatingFor the percentage of production that is not climate neutral today, we compensate with CDM-projects.CDM Cl D l t M h i i CO d i j tCDM - Clean Delevopment Mechanism is CO2 - reducing projects defined by the Kyoto Protocol and the Framework Convention on Climate ChangeCDM j t d i t i th t l k t i blCDM - projects are made in countries that lack a sustainable energy solution.

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Conclusion

Fortum - your energy partner for data centers

Electricity distributionProcurement of electricity yProcurement of certificates for renewable electricityDistrict heatingDi t i t liDistrict coolingPurchasing of surplus heat

Making your data center climate neutral

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Thank you for your time

Questions?Questions?

contact information:jenny.dahlberg@fortum.com+46(8)671 84 22

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