Finnish consortium signs nuclear deal with Rosatom

• 10 years ago (2013-12-23)
• Junior Isles

Europe 1061 Nuclear 640

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Finnish nuclear consortium Fennovoima has signed a long anticipated deal with Russia's Rosatom to construct and support a new 1200 MW reactor in Pyhäjoki, northern Finland, with operation scheduled to begin in 2024.

The €6 billion ($8.2 billion) reactor is intended to supply cheap energy to members of the consortium, which includes steel company Outokumpu, retailer Kesko and around 40 other Finnish industrial companies and utilities.

Rosatom will take a 34 per cent stake in the Fennovoima consortium, filling the funding hole left by the departure of Germany's E.ON which left the project last year as part of its strategic review.

Fennovoima did not disclose the value of the agreement with Rosatom and the deal is still provisional as it needs approval from all Fennovoima shareholders.

The final investment decision on the plant is due in February.

The project has been troubled by the poor finances of many of its Finnish members, with 15 of Fennovoima’s 60 shareholders deciding to give up their shares in the project last month, and increased stakes and new members needed to take the project to completion.

"In this economic situation, new foreign investments to Finland are very welcome," said Jan Vapaavuori, the Finnish minister of economic affairs, in a statement.