Fortum updated its strategy to ensure its energy transition and sustainable financial results. In 2021, capital expenditures for the group will amount to approximately EUR 1,400 mln, including maintenance and excluding asset acquisitions.
Guided by the Paris Agreement goals, Fortum plans to achieve carbon neutrality by 2050 and also sets ambitious intermediate goals.
Fortum also updated its financial targets with a net debt to comparable EBITDA ratio below 2x, and set threshold rates of return for new investments based on climate targets.
The updated dividend policy goal calls for a gradual increase in dividends. The board of directors set the dividend target at €1.12 per share for 2020.
Significant benefits from cooperation with Germany-based energy supplier Uniper have been identified by the company. According to preliminary estimates, the annual economic effect will be more than EUR 50 million by the end of 2023 and will reach approximately EUR 100 million in 2025.
The development of carbon-free power generation involves the construction of new onshore wind and solar power plants with a total capacity of 1.5-2 GW by 2025.
Fortum has undergone a transformation, investing nearly EUR 11 billion over the past six years which helped it become Europe's third-largest CO2-free energy producer and a major player in the gas industry.