Finnish Nuclear Plant Clears Final Hurdle

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The final stumbling block for Finland's latest nuclear power project has been overcome as investors guaranteed that the plant will be majority-owned by Finnish companies.

In the past week, three Finnish companies--Fortum Oyj (HEL:FUM1V) (Espoo, Finland), SRV (Espoo) and Outokumpu Oyj (HEL:OUT1V) (Espoo)--took, or increased, their shares in the Hanhikivi-1 nuclear power plant (NPP) in the Pyhäjoki region of western Finland. According to project developer Fennovoima Oy (Helsinki, Finland), this takes Finnish ownership of the project to just more than 65%. Fennovoima was created solely by a large number of Finnish companies and investors to build the Hanhikivi-1 plant. Construction was expected to start back in 2010, but the controversial project has been mired in delays.

The government had stipulated that the Hanhikivi-1 project had to be at least 60%-owned by Finnish companies before it would grant a construction license. Fortum, SRV and Outokumpu will control shares in Fennovoima equal to 6.6%, 1.8% and 14.1%, respectively. Fennovoima said it has completed and submitted an update regarding the ownership to Finland's Ministry of the Employment and the Economy.

Elina Engman, chief executive officer of Fennovoima's owner, Voimaosakeyhtiö SF, said: "We extend a warm welcome to the new shareholders of Fennovoima. They are now part of a major undertaking that incorporates a billion-euro investment in Finland."

"Fennovoima is an important project for the Finnish society," added Timo Karttinen, Fortum interim chief executive officer and chief financial officer. "At the same time, nuclear power is one of the key areas in Fortum's strategy and our core competence, together with hydropower and combined heat and power production. Our target has not been to build a greenfield site for nuclear power in Finland, as we already have two own nuclear power units in Loviisa and Fortum holds a share in Olkiluoto units. Our decision enables, however, the Fennovoima project to proceed within the timeline the Finnish government has set to the project."

Hanhikivi-1 will cost approximated $4.5 billion to construct. Russia's Rosatom (Moscow, Russia) beat Japan's Toshiba Corporation (TYO:6502) (Tokyo, Japan) as the lead contender to build the plant and proposes to use the AES-2006 reactor, the latest generation of its VVER plant designs.

Last December, the Finnish government voted to approve the construction of the Hanhikivi-1 nuclear power plant. For additional information, see December 15, 2014, article - Finland Green Lights Hanhikivi Nuclear Project.

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