July 3, 2020 / 6:17 AM / a month ago

Fortum sells district heating business in south Finland

FILE PHOTO: Finnish energy company Fortum sign is seen at their headquarters in Espoo, Finland July 17, 2018. REUTERS/Ints Kalnins/File Photo

(Reuters) - Finnish utility Fortum said on Friday it had signed an agreement to sell its district heating business in the Jarvenpaa-Tuusula area in southern Finland to a local consortium of companies for 375 million euros ($421 million).

The plant produced approximately 330 gigawatt hours of heat and approximately 90 GWh of power in 2019, Fortum said.

The company expects to book a capital gain of about 290 million euros in its third quarter results.

The consortium of buyers includes local utility Vantaa Energy, infrastructure investment firm Infranode and pension firm Keva.

Fortum has been reviewing options for several of its district heating businesses. It sold a business in Joensuu in eastern Finland in January.

“The strategic review for the district heating businesses in Poland and the Baltics is still ongoing and proceeding according to plan,” Fortum said.

Reporting by Tarmo Virki in Tallinn; editing by Edmund Blair and Jason Neely

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