Fennovoima Signs Hanhikivi-1 Supply Contract With Rusatom Overseas

By David Dalton
21 December 2013

21 Dec (NucNet): Fennovoima of Finland and Rusatom Overseas, a subsidiary of Russia’s state nuclear corporation Rosatom, have today signed the plant supply contract for the Hanhikivi-1 nuclear power plant that is to be constructed in Pyhäjoki, western Finland.

According to the schedule agreed with Rusatom Overseas, the power plant will produce electricity in 2024, Fennovoima said.

In November 2013, 45 out of 60 shareholders in Voimaosakeyhtiö SF, the consortium that owns Fennovoima, decided conditionally to continue with the project. By the end of February 2014, each of those 45 shareholders will have to confirm they are willing to proceed under the terms agreed with Rusatom Overseas.

This means that the final investment decision on whether or not to build Hanhikivi-1 will be made at the end of February 2014. At the same time Rosatom will take a 34 percent share in Fennovoima.

Fennovoima will sell all the electricity it produces at Hanhikivi-1 for its owners at cost price. When the plant starts operating in 2024, the price of electricity for shareholders will be less than 50 euros (68 US dollars) per megawatt-hour. This price includes all production costs, depreciations, debt interests as well as waste management, Fennovoima said.

Fennovoima did not disclose the price of the proposed plant, but said Rosatom will have an important role in arranging debt financing for the construction phase.

The plant will be an AES-2006 pressurised water reactor, the latest version of Russia’s VVER plants.

Finland has four nuclear units in commercial operation and one, the Olkiluoto-3 EPR, under construction.

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