Fennovoima and Rusatom Overseas signed plant supply contract

Fennovoima and Rusatom Overseas, subsidiary of the Russian Rosatom, have today on 21st December, 2013, signed the plant supply contract for the Hanhikivi 1 nuclear power plant that is to be constructed in Pyhäjoki, Finland. According to the schedule agreed with Rusatom Overseas, the power plant will produce electricity in 2024.

In November, Fennovoima owners made conditional decisions on continuation in the project. Each shareholder who made a positive decision then will give confirmation for the negotiation result that has now been achieved and thus will by the end of February 2014 give confirmation for participating in the project. This means that the final investment decision about constructing the nuclear power plant in Pyhäjoki is made in the end of February. At the same time Rosatom will take over a 34 per cent share of Fennovoima.

Fennovoima is a Mankala company which means it sells all the electricity it produces for its owners at cost price. When the plant starts operating in 2024, the price of electricity for shareholders will be less than EUR 50/MWh. This price includes all production costs, depreciations, debt interests as well as waste management.

The price of the nuclear power plant is not disclosed. Rosatom will have an important role in arranging debt financing for the construction phase of the power plant.

The nuclear power plant that is to be constructed in Pyhäjoki is a pressurized water reactor AES-2006, latest development of VVER plants. The plant will comply with the latest Finnish safety requirements. Nuclear power plants similar to the AES-2006 have been ordered all over the world and at the moment similar power plants are under construction in Russia.

For more information:
CEO of Voimaosakeyhtiö SF, Pekka Ottavainen, tel. +358 (0)20 757 9247
Fennovoima PR and International Communications Manager, Tiina Tigerstedt, tel. +358 20 757 9211

Photos from the contract signing event can be found from our website later in the day.