Finnish companies agree to take forward new plant at Pyhäjoki

18 April 2014

Fennovoima's owners Voimaosakeyhtiö SF and RAOS Voima Oy have made a binding decision to construct and finance a new nuclear plant at Fennovoima's site in Pyhäjoki. The decision was taken on 15 April.

Fennovoima said it "supports Finland's competitiveness and the operations of its owner companies. The project increases Finland's self-sufficiency in electricity generation and strengthens the security of supply."

"This is a crucial intermediate decision. The construction of the nuclear power plant will hereby proceed according to plan," said Juhani Pitkäkoski, who was nominated as the board chairman of Fennovoima at the 15 April meeting. The former chairman, Pekka Ottavainen, will continue in his capacity as the chief executive of Voimaosakeyhtiö SF.

According to Fennovoima, the power plant will generate electricity for its owners at cost price starting from 2024. The price of power is expected to be below €50/MWh.

The company signed a reactor supply agreement for the plant, which will be known as Hanhikivi 1, with Rosatom in December last year. The project will use the newest version of Rosatom's PWR-style VVER reactor, the AES-2006.

Voimaosakeyhtiö SF, the majority shareholder in Fennovoima with 66% of sharesis owned by a group of regional energy utilities and manufacturing companies. The remaining 34 per cent of the company is held by RAOS Voima, the Finnish subsidiary Rosatom..The Russian reactor supplier acquired that stake in Fennovoima in March this year.

According to Helsinki Times, some shareholders - Kesko, Kuopion energia, S-voima and Boliden - have declined to fund the new nuclear power project. The publication said the options were for the remaining Voimaosakeyhtiö SF shareholders to increase their funding or for Rosatom to increase its stake.

The Ministry of Employment and the Economy of Finland is now preparing a proposal for Fennovoima's application to supplement the Decision-in Principle. If the government approves the supplement, the application will proceed to Parliamentary ratification.



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