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Released November 07, 2012 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- German energy giant E.ON AG (PINK:EONGY) (Dusseldorf, Germany) has announced that it plans to exit the Finnish nuclear market and plans to sell its 34% share in Finnish energy company Fennovoima Oy (Helsinki, Finland).
The decision threatens to derail Fennovoima's plan to build its first nuclear power plant in the Pyhäjoki region of northern Finland. E.ON said it will instead focus its attention on the nearby markets in Sweden and Denmark. The decision forms part of E.ON's larger plan to completely exit Finland's gas and electricity markets.
The 1,700-megawatt (MW) Hanhikivi 1(HA1) plant was to be constructed on the Hanhikivi peninsula on the coast of Bothnian Bay by 2020. In February this year, Fennovoima accepted two bids for the project from Areva S.A. (EPA:CEI) (Paris, France) and Toshiba Corporation (TYO:6502) (Tokyo, Japan). The project has an estimated value of 4 billion to 6 billion ($5.8 billion to $8.7 billion) and a winner is expected to be picked next year. For additional information, see February 6, 2012, article - Final Bids Received for New Finnish Nuclear Plant .
"E.ON has decided to focus its resources and investments on existing Nordic operations in Sweden and Denmark," said Jonas Abrahamsson, CEO of E.ON Sverige. "As such, we are initiating the process of selling our business and property in Finland. "I understand the Fennovoima project's importance for Finland. We are supporting the other owner, Voimaosakeyhtiö SF, in finding ways to carry on with the project. Our operations in the Kainuu region are well managed and I believe that a new owner can develop it even further."
He added: "Our refocus will allow us to invest our resources and direct our capabilities towards strengthening our other assets in the Nordic region. We will now focus on continuing our ambitious investment program in Sweden including renewable generation and smart grids as well as concluding our remaining large modernization and safety upgrade project PLEX in Oskarshamn 2 nuclear power plant".
Finland is determined to increase its use of nuclear power in the energy mix from around 30% today to almost 60% by 2020.
In 2010, the Finnish parliament voted in favour of building two nuclear plants that will add at least an extra 3,200 MW to the country's generation capacity. For additional information, see July 6, 2010, article - Final Approval Granted for Two Nuclear Plants in Finland.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The decision threatens to derail Fennovoima's plan to build its first nuclear power plant in the Pyhäjoki region of northern Finland. E.ON said it will instead focus its attention on the nearby markets in Sweden and Denmark. The decision forms part of E.ON's larger plan to completely exit Finland's gas and electricity markets.
The 1,700-megawatt (MW) Hanhikivi 1(HA1) plant was to be constructed on the Hanhikivi peninsula on the coast of Bothnian Bay by 2020. In February this year, Fennovoima accepted two bids for the project from Areva S.A. (EPA:CEI) (Paris, France) and Toshiba Corporation (TYO:6502) (Tokyo, Japan). The project has an estimated value of 4 billion to 6 billion ($5.8 billion to $8.7 billion) and a winner is expected to be picked next year. For additional information, see February 6, 2012, article - Final Bids Received for New Finnish Nuclear Plant .
"E.ON has decided to focus its resources and investments on existing Nordic operations in Sweden and Denmark," said Jonas Abrahamsson, CEO of E.ON Sverige. "As such, we are initiating the process of selling our business and property in Finland. "I understand the Fennovoima project's importance for Finland. We are supporting the other owner, Voimaosakeyhtiö SF, in finding ways to carry on with the project. Our operations in the Kainuu region are well managed and I believe that a new owner can develop it even further."
He added: "Our refocus will allow us to invest our resources and direct our capabilities towards strengthening our other assets in the Nordic region. We will now focus on continuing our ambitious investment program in Sweden including renewable generation and smart grids as well as concluding our remaining large modernization and safety upgrade project PLEX in Oskarshamn 2 nuclear power plant".
Finland is determined to increase its use of nuclear power in the energy mix from around 30% today to almost 60% by 2020.
In 2010, the Finnish parliament voted in favour of building two nuclear plants that will add at least an extra 3,200 MW to the country's generation capacity. For additional information, see July 6, 2010, article - Final Approval Granted for Two Nuclear Plants in Finland.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
