Released July 06, 2010 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Finnish parliament has voted in favour of building two nuclear plants that will add at least an extra 3,200 megawatts to the country's generation capacity.
The final decision was pushed through by the ruling coalition parties, which had signalled their intent to approve two of three proposed nuclear plants last April. For additional information, see February 9, 2010, article - Finland Approves Two New Nuclear Plants.
The Finnish parliament voted 120-72 in favour of the construction of a new power plant unit, Olkiluoto 4, by Teollisuuden Voima Oyj (TVO) (Helsinki, Finland) and 121-71 in favour of the Fennovoima Oy (Helsinki) consortium's building a new nuclear plant in either the Simo or Pyhäjoki regions. Nuclear power currently supplies about 30% of Finland's electricity.
The decision by Finland comes only two weeks after the Swedish government overturned a 30-year ban on new nuclear reactors in a highly controversial vote. Sweden managed a narrow 174-172 vote that will allow the owners and operators of the country's 10 ageing nuclear reactors to replace them with new reactors. Today, nuclear power accounts for almost half of Sweden's electricity generation capacity. Sweden presents an example of a growing return to nuclear power in Europe, following the Chernobyl disaster in 1986.
The new Finnish nuclear plants will cost an estimated 10 billion euros ($12.6 billion) to build and should be operational by 2020. The Fennovoima Oy (Helsinki) consortium includes German power giant E.ON AG (OTC:EONGY) (Dusseldorf, Germany). A third application by Finnish energy operator Fortum Oyj (HEL:FUM1V) (Espoo, Finland) was rejected in April.
"This is a big step for the Finnish economy," said economic minister Mauri Pekkarinen, who has been leading the charge to increase Finland's nuclear power base and reduce energy dependence on other countries, particularly Russia. "It is a clear stimulus that will help jolt the economy out of the apathy that's been plaguing Finland and the rest of Europe."
Funding for the projects will be the sole responsibility of the companies involved. Pekkarinen has previously said, "The companies don't need any subsidies. The government has nothing to do with the financing."
Celebrating the decision, TVO's president and CEO, Jarmo Tanhua, said: "This was a very pleasing and welcome decision for us after the application process of more than three years. We can now continue preparations for the project. The electricity produced at our new nuclear power plant unit will benefit not only the Finnish industry, but also households and the service sector. The decision made today is an important milestone towards the EU vision of CO2-neutral energy production. Placing greater emphasis on nuclear power and renewable energy sources will help us achieve significant cuts in emissions in electricity production."
TVO is currently the owner of the troubled Olkiluoto 3 reactor project, which is being built by Areva SA (EPA:CEI) (Paris, France). Olkiluoto 3 was due to open in 2009 but is now running more than three years behind schedule and billions of euros over budget. TVO recently admitted that the ongoing delays have pushed the construction completion date to the end of 2012, six months past the revised June 2012 deadline. For additional information, see related item from April 21, 2010 - Delays Strike Olkiluoto 3 Nuclear Plant--Again.
View Project Report - 079900041
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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 final decision was pushed through by the ruling coalition parties, which had signalled their intent to approve two of three proposed nuclear plants last April. For additional information, see February 9, 2010, article - Finland Approves Two New Nuclear Plants.
The Finnish parliament voted 120-72 in favour of the construction of a new power plant unit, Olkiluoto 4, by Teollisuuden Voima Oyj (TVO) (Helsinki, Finland) and 121-71 in favour of the Fennovoima Oy (Helsinki) consortium's building a new nuclear plant in either the Simo or Pyhäjoki regions. Nuclear power currently supplies about 30% of Finland's electricity.
The decision by Finland comes only two weeks after the Swedish government overturned a 30-year ban on new nuclear reactors in a highly controversial vote. Sweden managed a narrow 174-172 vote that will allow the owners and operators of the country's 10 ageing nuclear reactors to replace them with new reactors. Today, nuclear power accounts for almost half of Sweden's electricity generation capacity. Sweden presents an example of a growing return to nuclear power in Europe, following the Chernobyl disaster in 1986.
The new Finnish nuclear plants will cost an estimated 10 billion euros ($12.6 billion) to build and should be operational by 2020. The Fennovoima Oy (Helsinki) consortium includes German power giant E.ON AG (OTC:EONGY) (Dusseldorf, Germany). A third application by Finnish energy operator Fortum Oyj (HEL:FUM1V) (Espoo, Finland) was rejected in April.
"This is a big step for the Finnish economy," said economic minister Mauri Pekkarinen, who has been leading the charge to increase Finland's nuclear power base and reduce energy dependence on other countries, particularly Russia. "It is a clear stimulus that will help jolt the economy out of the apathy that's been plaguing Finland and the rest of Europe."
Funding for the projects will be the sole responsibility of the companies involved. Pekkarinen has previously said, "The companies don't need any subsidies. The government has nothing to do with the financing."
Celebrating the decision, TVO's president and CEO, Jarmo Tanhua, said: "This was a very pleasing and welcome decision for us after the application process of more than three years. We can now continue preparations for the project. The electricity produced at our new nuclear power plant unit will benefit not only the Finnish industry, but also households and the service sector. The decision made today is an important milestone towards the EU vision of CO2-neutral energy production. Placing greater emphasis on nuclear power and renewable energy sources will help us achieve significant cuts in emissions in electricity production."
TVO is currently the owner of the troubled Olkiluoto 3 reactor project, which is being built by Areva SA (EPA:CEI) (Paris, France). Olkiluoto 3 was due to open in 2009 but is now running more than three years behind schedule and billions of euros over budget. TVO recently admitted that the ongoing delays have pushed the construction completion date to the end of 2012, six months past the revised June 2012 deadline. For additional information, see related item from April 21, 2010 - Delays Strike Olkiluoto 3 Nuclear Plant--Again.
View Project Report - 079900041
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.
