Fortum set to lead Uniper’s hydro assets

11 May 2021

Fortum and Uniper have finalised the first planning phase in its ‘One Team’ approach, with Fortum set to lead the operations of both companies’ Nordic hydro assets at the start of 2022.

In December 2020, Fortum and Uniper announced three joint cooperation areas to ensure the focused and effective implementation of the Group strategy – with the areas being Nordic hydro and physical trading optimisation, wind and solar development, and hydrogen.

The overall aim is to create more value for Fortum and Uniper, with Fortum set to take the lead in hydro while Uniper takes the lead in the development of both companies’ wind and solar as well as hydrogen business.

The cooperation teams have jointly developed the preliminary plans for the operating models, which will be further elaborated and conclusively assessed in the next phase. The implementation of the intended strategic cooperation in the three areas is subject to final approval by Fortum’s and Uniper’s governing bodies as well as consultation with the relevant employee representation bodies in both companies. Discussions with employee representatives have already been initiated.

In the area of Nordic hydro and physical trading optimisation, the proposed plan anticipates that Fortum would become operationally responsible for Uniper’s hydro asset management and operations in Sweden as well as its physical trading and optimisation activities in the Nordics. The proposal would primarily affect approximately 180 Swedish hydro employees at Uniper. No redundancies are expected, and all existing locations of Fortum and Uniper in the joint Nordic portfolio are planned to remain in operation. According to the proposed plans, the ownership of Uniper’s hydro assets would stay with Uniper. The new operating model is planned to be implemented at the beginning of 2022, subject to the required internal approvals.

By adopting best practices, tools and processes from both companies, the new combined Nordic hydro and physical trading team would be able to develop better digital solutions for daily operations management and improve safety performance. Fortum and Uniper believe that the new operating model would create more value for both companies than continuing to optimise the two portfolios separately.

The combined Nordic hydro and physical trading optimisation activities would be led by Simon-Erik Ollus, head of Fortum’s Generation division. These businesses employ around 400 people mainly in Sweden and Finland.


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