Fortum Oyj : and GIG to form a joint venture and invest in a Waste-to-Energy plant in Glasgow, Scotland .

Fortum and GIG (Green Investment Group, a specialist green investor within Macquarie Asset Management), have made a decision to invest in a new Waste-to-Energy plant in Glasgow, Scotland, through a 50/50 joint venture. When fully commissioned, the South Clyde Waste-to-Energy plant is expected to have a processing capacity of 350,000 tonnes of waste per year. This processing capacity represents the annual amount of waste of about 70,000 individuals. The plant is expected to have a power generation capacity of 45 MWe gross, corresponding to the average annual electricity consumption of approximately 90,000 homes.

The joint venture utilises Fortum's competence in plant construction and plant operative management, once commissioned. The project is based on Fortum's development work in the UK markets and is expected to play a critical role in delivering the Scottish government's landfill ban, which comes into effect in 2025. Participation in this project supports Fortum's Recycling and Waste business strategy that aims to significantly improve the circulation of materials in waste streams using next-generation circular economy solutions based on combined carbon capture, utilisation and storage (CCUS) technologies in the long term.

The investment decision aligns with Fortum's strategy to partner with industrial and infrastructure customers to engage customers and societies to reduce their environmental footprint. Through its subsidiary Uniper, Fortum is already active in the UK market, constructing two infrastructure plants for grid stability in Killingholme and Grain. In addition, Fortum has already, for several years, been offering operation and maintenance services to external energy industry customers in the region. Entering the Waste-to-Energy business in the UK now further expands Fortum's presence in the market. In addition to Glasgow, Fortum has a pipeline for several other Waste-to-Energy projects across the UK and the ambition to expand these operations further in the short term.

"Building on our existing presence in the UK market and existing infra services, this is an excellent opportunity for Fortum to leverage its competence and enter the UK Waste-to-Energy market. The market is in an interesting development phase and will, over time, offer the potential for further investments in Waste-to-Energy. This wider entry to the UK also enables us to investigate the investment potential for our other strategic growth areas, such as the recycling of batteries and WtE-ash recycling," says Kalle Saarimaa, Vice President of Fortum Recycling and Waste.

"Scotland's landfill ban is a central pillar of its strategy to deliver a circular economy. GIG is committed to helping deliver the ban by providing the infrastructure required to treat residual, non-recyclable waste domestically. Heat offtake enabled and with CCS retrofit potential, the South Clyde Energy-from-Waste plant expects to play an important role in tackling Glasgow's, and Scotland's, waste challenge," said Chris Archer, Co-Head of GIG Europe.

Further information:

Kalle Saarimaa, Vice President, Fortum Recycling & Waste,
kalle[dot] saarimaa[at] fortum[dot] com, tel. [phone]

Maiju Daniel-Huhtaniska, Communications Manager, Fortum Recycling & Waste,
maiju[dot] daniel-huhtaniska[at] fortum[dot] com, tel. [phone]

Fortum

Fortum and Uniper form a European energy group committed to enabling a successful transition to carbon neutrality for everyone. Our 50 gigawatts of power generating capacity, substantial gas import and storage operations, and our global energy trading business enable us to provide Europe and other regions with a reliable supply of low-carbon energy. We are already Europe's third largest producer of CO2-free electricity, and our growth businesses focus on clean power, low-carbon energy, and the infrastructure for tomorrow's hydrogen economy. In addition, we design solutions that help companies and cities reduce their environmental footprint. Our 20,000 professionals and operations in 40 countries give us the skills, resources, and reach to empower the energy evolution toward a cleaner world. fortum.com; uniper.energy

Green Investment Group

Green Investment Group (GIG) is a specialist green investor within Macquarie Asset Management, and a global leader in the development of companies, assets and technologies that aim to accelerate the global transition to net zero. Initially launched by the UK Government in 2012 as the Green Investment Bank, it was the first institution of its type in the world. Acquired by Macquarie in 2017, GIG has grown to become one of the world's largest green investors with a development pipeline of more than 30 GW in over 25 markets, spanning established renewables and emerging green technologies.

Macquarie Asset Management is a global asset manager that aims to deliver positive impact for everyone. Trusted by institutions, pension funds, governments, and individuals to manage more than $A735.5 billion/EUR459.0/GBP394.6/USD531.7 in assets globally, Macquarie Asset Management provides access to specialist investment expertise across a range of capabilities including fixed income, equities, multi-asset solutions, private credit, infrastructure, renewables, natural assets, real estate, and asset finance.

Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory and risk and capital solutions across debt, equity, and commodities. Founded in 1969, Macquarie Group employs approximately 17,209 people in 33 markets and is listed on the Australian Securities Exchange.

All figures as at 31 March 2022. For more information, visit greeninvestmentgroup.com and macquarie.com