Olkiluoto 3 Nuclear Plant Delayed Again

Researched by Industrial Info Resources (Sugar Land, Texas)--The troubled construction of the Olkiluoto 3 nuclear power plant in Finland is experiencing problems once again, and the scheduled completion date of June 2012 is no longer feasible. Finnish energy provider and project owner Teollisuuden Voima Oy (TVO) (Eurajoki) has announced that the latest progress report submitted by plant supplier Areva SA (EPA:CEI) (Paris, France) shows that the plant will not be ready until after this date. The power plant was originally scheduled to start in May 2009, but this date has been repeatedly revised.

In addition to this setback, this week the Finnish Radiation and Nuclear Safety Authority (STUK) highlighted problems with the welding of pipes at the site and has demanded a full report from TVO before work can progress. These are just the latest setbacks in a long line of problems with the Olkiluoto 3 build, a project that was to showcase the next generation of nuclear reactor, the European Pressurized Water Reactor (EPR) from Areva and partners Électricité de France SA (EPA:EDF) (Paris, France).

"Olkiluoto 3 is a huge project," said Olkiluoto 3 Project Director Jouni Silvennoinen. "Thousands of people have been working hard in construction activities here at the site, and we have recently met important milestones. However, the reactor plant civil construction works are taking longer than previously estimated, and the pace of completion continues to be slower than planned. These accumulating delays are now impacting the start of the installation and erection works. Additionally, there continues to be delay in the development of the I&C [instrumentation and control] system, and this may become critical for the plant time schedule."

Silvennoinen added: "At the same time, we will not permit any compromise of safety or quality requirements; the plant will be safe and technically advanced."

There is currently a workforce of 4,100 working on the plant's construction. This summer, the reactor building of Olkiluoto 3 reached the roof level, and the manufacture of several main components was completed. The erection of main turbine components is finished, but the civil construction works and erection works at the reactor building are ongoing. Overall, the project is about 80% complete. Throughout the build, however, there have been major delays caused by waterlogged concrete, flaws in pipes, and bad welding.

TVO and Areva have clashed more than once on the project. Last month, Areva told TVO that it would not finish the Olkiluoto 3 nuclear power plant unless TVO issued contracts for requested modifications and agreed to certain proposals. For additional information, see related September 9, 2009, article - Areva Pressures Finland's TVO About Troubled Nuclear Power Plant.

The original contract was worth $4.27 billion when awarded in 2003, but thanks to major delays and Areva's having to pay former contract partner Siemens AG (NYSE:SI) (Munich, Germany) $2.85 billion in penalties because of delays, Areva now expects a massive loss of $4.3 billion from the project. Areva is also building an EPR-based nuclear power plant in Flamanville, France, for Électricité de France.

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