Google signs up for electricity from Finnish nuclear power plant

The Power Purchase Agreement (PPA) between Fortum and Google covers the life extension period of the Loviisa nuclear power plant. The agreement will start in 2028 with a reduced capacity and will cover 50% of the Loviisa plant's capacity in the years 2030–2049. The agreement comes as Google announced that it will invest EUR13 billion (USD15 billion) in data centres and supporting infrastructure in Finland over the next two years (2027–2028) and partnerships in Hamina, Muhos, Vaala and Kajaani.

Loviisa - comprising two VVER-440 type pressurised water reactors - was the first nuclear power plant in Finland and currently provides more than 10% of the country's electricity. Loviisa unit 1 began commercial operation in 1977, with unit 2 following in 1981. In February 2023, the Finnish government granted Fortum an extension to the operating licence for the two units, allowing the plant to continue generating power until the end of 2050.

Fortum has an investment programme of about EUR1 billion under way in Loviisa, the aim of which is to extend the operation of the power plant until 2050. Currently, about 80% of the projects required to extend the service life and investments of EUR700 million still lack an investment decision. Fortum said the PPA with Google will generate a predictable revenue stream, enabling it to complete the life extension investments at Loviisa. The agreement is also expected to enable a new 10 MWe capacity increase. The plant already has a 38 MWe capacity increase under way, which is expected to be completed in 2028.

"Without significant investments in its lifetime extension, the plant would not be able to continue producing fossil-free electricity after 2030," Fortum said. "Keeping it in operation for the coming decades will help stabilise electricity prices and support the long-term resilience of the Finnish electricity grid."

"Finland has a unique opportunity to build the next wave of sustainable growth and industrialisation from its low-carbon and reliable electricity system," said Fortum CEO Markus Rauramo. "A key enabler for this growth are long-term partnerships, such as the one we have sealed today between Fortum and Google. The importance of partnerships is highlighted in the current uncertain market environment, characterised by low visibility and highly volatile electricity prices. They bring the predictability required for investments in new, low-carbon electricity generation capacity, strengthening energy security, and digital and industrial infrastructure, and create jobs, innovation and prosperity for Finland. In addition, our collaboration with Google creates a strong foundation for the continued development and reliable operation of our Loviisa power plant in the coming decades."

Google said: "Keeping this clean energy asset online will help to safeguard access to reliable, affordable electricity for Finland's households, businesses, and industrial users alike. We'll also work with Fortum to identify potential opportunities to develop new nuclear reactors at Loviisa."

"We are proud to have called Finland home for the past 15 years," said Aris Karcanias, Head of Energy, EMEA, Google. "As we expand our operations in Finland, it is critical that we work with local energy partners like Fortum to increase our understanding of what the grid needs and invest in energy solutions that deliver long-term resilience and affordability for all electricity users. By supporting the extension of the Loviisa power plant's lifespan, we are doing our part to preserve a critical energy source in the electricity grid. The plant is located close to our Hamina data centre, where we established roots when we came to Finland. As we grow, we are working with Fortum and other partners to bring new renewable energy generation capacity and flexible solutions to the Finnish electricity system. Our goal is to be a pioneer in how AI is responsibly integrated into European energy systems."

In addition, Google and Fortum have signed a memorandum of understanding to collaborate to support the growth of both companies in Finland and to bring more electricity generation to Finland to meet the needs of the electricity grid, households and businesses. The companies intend to deepen their collaboration in the development of new nuclear power, renewable energy and flexibility solutions. The MoU aims to ensure that as demand for AI services increases, new low-carbon generation is deployed to support the long-term electricity supply of Finnish consumers and businesses.

Also, Fortum and Google have signed a letter of intent to promote new power generation and flexible capacity. As a first step, Fortum has signed an agreement with Google to optimise the battery storage system to be located at the Kajaani data centre. The new battery system has a capacity of 94 MW, and Google has agreed to deliver it with a subcontractor.

Fortum noted that it has stated in its study on new nuclear power that potential investments in new nuclear power and its long-term financial viability require strong customer demand secured by power purchase agreements, strategic investors and partners, an efficient financing and risk-sharing model, and strong project implementation. "Google and Fortum are investigating business models that could improve the competitiveness of the new nuclear power project in Loviisa. In addition, the companies are investigating the suitability of Fortum's land areas with network connections for Google's future data centre needs," Fortum said.