Finland's New Nuclear Project Advances

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Finnish energy company Fennovoima Oy (Helsinki, Finland) has submitted the Environmental Impact Assessment (EIA) for the country's latest proposed nuclear power plant.

The EIA report, which has been submitted to the Finnish Ministry of Employment and the Economy, concludes that the construction of the 1,200-megawatt (MW) project at Pyhäjoki is feasible. The project has an estimated value of €4 billion to €6 billion ($5.5 billion to $8.2 billion).

"The Fennovoima EIA report arrived at the Ministry in the expected time," confirmed the Minister of Economic Affairs, Jan Vapaavuori. "The EIA process will now continue; the Ministry will hold a consultation round with interested parties as well as a public hearing on the matter. Based on these reports, a legal position will be taken on whether or not the existing Decision-in-Principle also covers the Rosatom option, or if the Decision-in-Principle made by the Parliament in 2010 should be reconsidered. The assessments are proceeding as planned and in good co-operation with the authorities and Fennovoima."

Fennovoima claimed the current 1,200-MW nuclear power plant proposal would have less environmental impact to water systems, fishery and nature conservation areas than listed in the assessment produced in 2008 for the original 1,800-MW project.

Last year, Russia's Rosatom (Moscow, Russia) edged ahead of Japan's Toshiba Corporation (TYO:6502) (Tokyo, Japan) as the lead contender to build Pyhäjoki, which will be located on the Hanhikivi peninsula on the coast of Bothnian Bay. For additional information, see September 30, 2013, article - Rosatom In Front for Finnish Nuclear Contract.

Rosatom is proposing to use its AES-2006 reactor, the latest generation of its VVER plant designs. Fennovoima's 60 Finnish owners have to make a final investment decision by the end of this month if the project is to go ahead. Earlier this week, stainless steel company Outokumpu increased its stake in the nuclear project from 10% to 12.5%. It is good news for the project, which could yet lose some of its potential backers due to due low energy prices and a weakened economy.

The project was dealt a blow in 2012 when Germany's E.ON AG (PINK:EONGY) (Dusseldorf, Germany) announced its exit from the Finnish nuclear market by selling its 34% share in Fennovoima. For additional information, see November 7, 2012, article - E.ON Exiting Finnish Nuclear Market.

Finland is determined to increase its use of nuclear power in the energy mix from around 30% today to almost 60% by 2020.

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