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Finland’s Hanhikivi-1 Will Generate Up To €400 Million Of Investment, Says Study

By David Dalton
13 April 2018

13 Apr (NucNet): The Hanhikivi-1 nuclear power plant project in Finland will generate €210m to €400m of new investments through the multiplier effect, according to a study published this week by plant owner Fennovoima, the company building the plant.

Fennovoima said that during its lifetime, Hanhikivi-1 will also benefit the Finnish national economy through tax revenues, which will increase by approximately €420m to €630m during the construction phase. Taxes to be paid during the operational phase will amount to about €49m a year, taking the multiplier effect into account.

The multiplier effect refers to the increase in final income arising from a new injection of spending.

According to the study, the Hanikivi-1 project will have a substantial impact on employment with about 4,000 employees working at the site during the most intensive construction phase. When the plant is operational it will employ 450 to 500 people.

The project will create 17,400 to 26,000 man-years of employment, the study concludes. One job at the construction site during the construction phase creates five to 5.5 new jobs outside the site. One job at the operational plant will create 5.2 to 6.2 new jobs outside the power plant.

Fennovoima said the study, which looks at the impact of the project on the regional economy, will help companies plant their R&D investments.

Total investment in the project to build a Russia-supplied pressurised water reactor unit at Hanhikivi, in the municipality of Pyhäjoki in northern Finland, is €6.5bn to €7bn. The domestic share of that investment is about €1.8bn to €2.7bn.

Hanhikivi-1 will comprise a AES-2006 VVER-1200 reactor, which is scheduled to begin producing electricity in 2024. Rusatom Overseas, a subsidiary of Rosatom, and Fennovoima signed a contract in 2013 for the construction of the reactor.

Hanhikivi-1 is the largest-ever Russian investment project in Finland. A 34% stake Fennovoima is held by RAOS Voima Oy, the Finnish subsidiary set up in 2014 by Russian state nuclear corporation Rosatom for the purpose of buying a share in the company.

The study is online (Finnish only):

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