Fortum
Corporate brand
UnclaimedA Finnish listed energy company focused on electricity generation, heat production, energy sales and clean-energy solutions, particularly in the Nordic region. Fortum Energy is a Swedish electricity company offering electricity contracts and related services to household customers.
Last updated November 4, 2026
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Overview
Fortum Oyj is a Finnish energy company headquartered in Espoo and listed on Nasdaq Helsinki. Its principal activities include generating electricity, producing and selling district heat, supplying electricity to consumers, and providing energy-related services. The company’s current business is concentrated mainly in the Nordic countries, with additional heat and electricity-sales activities in selected European markets. Fortum traces its institutional origins to Imatran Voima, a Finnish state power company established in 1932 to operate the Imatrankoski hydropower plant. Imatran Voima subsequently developed and acquired major Finnish generation assets, including hydropower stations, coal-fired plants and the Loviisa nuclear power plant. In 1998, Imatran Voima merged with Neste, Finland’s national oil company, creating Fortum. The combination initially gave the group a broad energy portfolio spanning electricity, heat, oil and gas-related activities. During the 2000s and 2010s, Fortum expanded through acquisitions and investments in the Nordic, Baltic, Russian, Polish and Indian energy markets. It developed and operated hydropower, nuclear power, combined heat and power, waste-to-energy, biomass, wind and solar assets. The company also owned electricity-distribution networks in Finland, Sweden and Norway before progressively divesting those regulated network businesses. Neste’s oil activities were separated into a distinct listed company in 2005, leaving Fortum increasingly focused on power and heat. Fortum’s strategy changed substantially after its acquisition of a majority stake in Uniper, a German power company with extensive gas, coal, nuclear and hydroelectric assets. Fortum completed control of Uniper in 2020, but the investment exposed the Finnish group to significant fossil-fuel, geopolitical and financial risks. During the European energy crisis, Fortum and the German government agreed in September 2022 that Uniper would be transferred fully to the German state. The transaction ended Fortum’s ownership of Uniper and returned the company to a more Nordic-centered energy portfolio. Fortum also withdrew from Russia after Russian authorities placed its Russian assets under external management in 2023. Fortum regarded the intervention as unlawful, deconsolidated the Russian operations and wrote down their value. It subsequently began arbitration proceedings seeking compensation. The company has also reduced its exposure to non-core activities, including the sale of its recycling and waste business and the planned or completed disposal of solar assets in India. Today, Fortum’s generation portfolio is built primarily around low-carbon and dispatchable sources. Hydropower is one of its most important renewable businesses, with assets in Finland and Sweden. The group also owns or co-owns nuclear-generation interests in Finland and Sweden, operates wind farms in the Nordic countries, and maintains selected combined heat and power facilities. Its customer business supplies electricity and related services to more than two million consumers, predominantly in the Nordic countries and Poland. Fortum presents itself as a clean-energy company supporting decarbonisation, while its past Uniper ownership and remaining fossil-fuel assets have generated environmental criticism and public debate. Fortum Energy is described in Wikidata as a Swedish company. Its Swedish website presents electricity contracts for homes, including quarter-price and variable monthly-price plans, an electric-vehicle package, and a Fortum app for smarter electricity use. The site states that more than 2 million electricity customers have chosen Fortum. Fortum also withdrew from Russia after Russian authorities placed its Russian assets under external management in 2023. Fortum deemed the intervention illegal, removed the Russian business from consolidation and wrote down its value. It subsequently launched arbitration proceedings seeking compensation. The company also reduced exposure to non-core businesses, including the sale of its recycling and waste business and the planned or completed sale of solar assets in India.
History
Fortum’s predecessor was Imatran Voima, or IVO, a Finnish state electricity company established in 1932. IVO was created to operate the Imatrankoski hydropower project, whose plant and transmission infrastructure had been developed during the preceding decade. It later expanded across Finland by building and acquiring hydropower stations on major river systems, as well as coal-fired plants at Inkoo and Naantali and the Loviisa nuclear power plant. In 1997, IVO and Neste agreed to merge. The resulting Fortum Corporation began operations in 1998. The new group initially combined power generation and heat with oil and gas activities. In 2003, Fortum expanded its Nordic presence through transactions involving Fredrikstad Energi and Fredrikstad Energi Nett. In 2005, most of Neste’s oil assets were separated into Neste Oil, later Neste, leaving Fortum with a more electricity- and heat-oriented identity. The company pursued international growth during the 2000s. It acquired a minority position in TGK-1 in northwestern Russia in 2007 and took control of the Russian power and heat company TGK-10 in 2008. Fortum also participated in Nordic transmission and distribution activities, although these businesses were later sold. In 2011 it divested its stake in Fingrid, Finland’s transmission-system operator. During 2013 and 2014 it developed waste-fuelled and biomass-fuelled combined heat and power plants in Lithuania, Sweden, Latvia and Finland, while also expanding into solar generation in India. Fortum progressively exited electricity-distribution networks. It sold its Finnish distribution business in a transaction announced in 2013, disposed of its Norwegian network and related local interests in 2014, and completed the sale of its Swedish distribution operations in 2015. The company also closed its 1,000-megawatt coal plant at Inkoo in 2014; the facility was later demolished. In Poland, Fortum acquired the electricity and gas retailer Grupa DUON in 2016. That year it also bought Ekokem, a Nordic circular-economy company involved in recycling, waste treatment and environmental services. India became an important market for Fortum’s early solar expansion. The company acquired a solar plant in Rajasthan in 2013, connected a greenfield solar park in Madhya Pradesh in 2015 and brought a 100-megawatt section of the Pavagada solar park onto the grid in 2017. Fortum later sold major Indian solar holdings and began reviewing its remaining Indian activities. A decisive turning point came in 2017, when Fortum announced plans to acquire E.ON’s 47 percent stake in Uniper. Fortum increased its ownership to a majority position in 2020. Uniper brought large gas, coal, oil, nuclear and hydroelectric assets, especially in Germany, Sweden and Russia. The acquisition made Fortum one of Europe’s largest power companies by revenue but also created tension between its clean-energy positioning and its expanded fossil-fuel exposure. Environmental groups accused the company of greenwashing and criticized Uniper’s role in coal generation and its legal challenge to Dutch coal-exit policy. The European energy crisis placed Uniper under severe financial pressure. On 21 September 2022, Fortum and the German government agreed that Uniper would be fully transferred to the German state through a capital increase and the purchase of Fortum’s remaining shares. The arrangement ended Fortum’s involvement with Uniper and included provisions concerning Uniper’s Swedish hydro and nuclear assets. Fortum’s Russian business was effectively lost after a Russian presidential decree in April 2023 placed the assets under external management. Fortum declared the action illegal, fully wrote down the value of the Russian operations and removed them from group consolidation. Russia subsequently renamed the operating business Forward Energo. Fortum began arbitration proceedings in 2024. A later Russian decree also transferred control of the Fortum-owned Chelyabinsk Energoremont company to the Russian state property agency. In parallel, Fortum narrowed its portfolio. It sold its Baltic business in 2021, disposed of its stake in Stockholm Exergi and sold solar assets in India. It sold its stake in Fortum Oslo Varme in 2022 and transferred its recycling and waste business to Summa Equity in 2024. Its current identity is centered on Nordic hydropower, nuclear power, wind, electricity supply, district heating and selected energy services. The company has also highlighted sustainability and tax transparency, becoming the first Finland-headquartered business to receive Fair Tax Mark certification in 2023. Fortum Energy is identified as a Swedish company in Wikidata. Its Swedish website markets electricity contracts to household customers and states that more than 2 million electricity customers have chosen Fortum. In Sweden, Fortum markets electricity contracts to household customers under its Swedish electricity offering. The Swedish website presents quarter-price and variable monthly-price plans, an electric-vehicle package, and a Fortum app for smarter electricity use, and states that more than 2 million electricity customers have chosen Fortum.
- 2023
Russian operations are deconsolidated
[1]Following Russian state intervention, Fortum writes off and deconsolidates its Russian operations.
- 2022
Uniper is transferred to Germany
[1]Fortum agrees to sell its remaining Uniper shares as part of the German state’s recapitalisation and nationalisation of the company.
- 2020
Fortum becomes Uniper’s majority owner
[1]Fortum increases its ownership of Uniper to a majority stake.
- 2017
Fortum announces Uniper acquisition
[1]Fortum announces an agreement to buy E.ON’s stake in Uniper, beginning a major expansion into European conventional generation.
- 2016
Fortum expands into Polish retail and circular economy
[1]Fortum acquires Grupa DUON and Ekokem, adding Polish electricity and gas sales and Nordic recycling and environmental services.
- 2005
Neste’s oil assets are separated
[1]Most of Neste’s oil activities are transferred into a separate listed company, leaving Fortum focused more strongly on power and heat.
- 1998
Fortum Corporation is formed
[1]Imatran Voima merges with Neste to create Fortum, initially combining electricity, heat, oil and gas activities.
- 1932
Imatran Voima is established
[1]Finland establishes Imatran Voima to operate the Imatrankoski hydropower plant, creating Fortum’s principal institutional predecessor.
Products and positioning
Nordic low-carbon energy producer and electricity and heat supplier, with a portfolio combining renewable, nuclear and flexible generation.
Renewable electricity generation
Hydropower
Hydropower is a core component of Fortum’s Nordic generation portfolio. The company owns or co-owns numerous plants in Finland and Sweden, including facilities associated with river systems such as the Oulujoki, Kemijoki, Vuoksi, Dalälven, Indalsälven and Ljusnan. The assets provide renewable electricity and valuable flexibility for the Nordic power system.
Low-carbon electricity generation
Nuclear power
Fortum operates the Loviisa nuclear power plant in Finland and holds interests in Swedish nuclear generation, including Oskarshamn and Forsmark. It also owns a stake in Teollisuuden Voima, the company operating the Olkiluoto nuclear facilities. Nuclear power forms a significant part of Fortum’s low-carbon generation strategy.
Renewable electricity generation
Wind power
Fortum operates wind farms in Finland, Sweden and Norway. Its wind portfolio complements hydro and nuclear generation and supports the company’s effort to increase low-emission electricity production in the Nordic market.
Heat and energy infrastructure
District heating and combined heat and power
Fortum produces and sells district heat and operates or co-owns combined heat and power facilities, particularly in Finland and Poland. Historically, the company also developed waste- and biomass-fuelled CHP plants. The business links electricity generation with urban heat networks and industrial energy demand.
Energy retail and services
Electricity sales and energy services
Fortum sells electricity, electricity products and related services to more than two million consumers, mainly in the Nordic countries and Poland. The wider service portfolio has included consultancy and technical services for power plants and other energy-sector customers.
Electricity contracts
Quarter-price electricity plan
A plan where the customer pays for actual consumption quarter by quarter, with the possibility to lower costs by shifting consumption.
Electricity contracts
Variable monthly-price electricity plan
A plan with the same price for the whole month.
Electricity contracts
Electric-vehicle package
A package that includes money back when charging at home for compatible cars and a discount when fast-charging the car on the road.
Energy services
Fortum app
An app intended to make electricity use smarter and lower costs.
Controversies
Brand decisions
2023
Write off and deconsolidate Russian operationsStrategyBackground
Russian authorities placed Fortum’s Russian assets under external management following the invasion of Ukraine and wider disputes over foreign-owned property.
Action taken
Fortum fully wrote down the value of its Russian assets, removed the operations from group consolidation and pursued legal remedies.
Aftermath
Fortum reported a loss of approximately EUR 1.7 billion associated with the write-off and subsequently launched arbitration proceedings against Russia.
Write-off loss. Approximately EUR 1.7 billion (2023)
2022
Divest Uniper to the German stateM&ABackground
Uniper required state support during the European energy crisis after the disruption of Russian gas supplies and the resulting market turmoil.
Action taken
Fortum agreed to transfer its approximately 293 million Uniper shares to Germany as part of a recapitalisation and state takeover.
Aftermath
Uniper was nationalised and Fortum exited the investment, while retaining a limited right of first offer over certain Swedish hydro and nuclear assets until the end of 2026.
Purchase price for Fortum’s Uniper shares. EUR 1.70 per share; approximately EUR 0.5 billion total (2022 agreement)
2017
Acquire a major stake in UniperM&ABackground
Fortum sought to expand its European generation portfolio through E.ON’s stake in Uniper, a company with substantial gas, coal, nuclear and hydroelectric operations.
Action taken
Fortum announced the purchase of E.ON’s 47 percent stake and later increased its holding to a majority position.
Aftermath
The transaction increased Fortum’s scale but also generated environmental criticism and exposed it to the financial effects of Europe’s energy crisis.
Recent events
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