Finnish utility Fortum has approved the co-ownership agreement to consolidate the region of Turku's energy production to the co-owned production company Turun Seudun Maakaasu ja Energiantuotanto (TSME) in Finland.
The arrangement requires a favourable decision from all the shareholders, after which, the arrangement would be realised at the beginning of 2012.
As per the agreement, Fortum's Naantali power plant, Turku Energia's Oriketo bioheat plant, the Oriketo waste-to-energy plant, and the Kakola heat pump plant will be transferred to TSME's possession.
TSME will also have the option to purchase Fortum's Naantali power plant at a later date and sell the district heat it produces to Turku Energia, the steam to Fortum and the electricity to its shareholders.
Fortum will hold a 49.5% stake in TSME, Turku Energia with a 39.5% interest and the municipalities of Naantali, Raisio and Kaarina holding 5%, 3% and 3% respectively.