Rosatom buys into Fennovoima

28 March 2014

Russia's state nuclear corporation Rosatom has acquired a 34% stake in Fennovoima, the company proposing to build the Hanhikivi nuclear power plant in Finland. The plant is to feature a Russian-supplied reactor.

Voimaosakeyhtiö SF - the Finnish owner of Fennovoima - announced that it has signed a share transaction agreement with RAOS Voima Oy, a Finnish subsidiary set up by Rosatom specifically for holding a stake in Fennovoima. Through the agreement Rosatom now holds a 34% stake in Fennovoima while Voimaosakeyhtiö retains the remaining 66%. The value of the transaction was not disclosed.

Voimaosakeyhtiö was established in 2006 by a group of Finnish industrial and energy companies to be the main shareholder in a new power plant project. Within a couple of years, over 60 companies had joined and Germany's EOn had taken a 34% stake in the project. However, in October 2012 EOn withdraw from Fennovoima, with Voimaosakeyhtiö buying its share to take full control. Last December, Rosatom agreed to take a 34% stake in Fennovoima.

Last month, Voimaosakeyhtiö announced that 44 of its shareholders had confirmed they will take a combined 50.2% stake in Fennovoima. However, at that time Voimaosakeyhtiö said that it aimed to increase the share held by Finnish firms up to around 66%.

The shareholders in Fennovoima are now expected to confirm their investment decision in the project at the company's general meeting next month, when a new board will also be elected.

Reactor design

Fennovoima signed the plant supply contract for Hanhikivi with Rusatom Overseas - Rosatom's subsidiary concerned with exports of nuclear power plants - last December. Rosatom has offered to build a plant using a Gidropress-designed AES-2006 VVER.

Earlier this month, Fennovoima submitted an application to the government to amend the 2010 decision-in-principle. This decision allows it to construct a new nuclear plant of 1500-2500 MWe capacity and was based on the company building a plant featuring Areva's EPR or Kerena design, or Toshiba's ABWR. The amendment will include Rosatom's AES-2006 plant, which uses a 1200 MWe-class reactor. Once passed by the government, the amendment would be submitted to parliament for final approval.

Researched and written
by World Nuclear News