Responsibility report 2017

Company information

Operational environment

Fennovoima’s operational environment can be seen from two perspectives. Prior to commercial operations, Fennovoima’s operations have similarities with large-scale infrastructure projects. At this stage, factors such as availability of resources (labor, raw materials and know-how) impacting the project implementation play a key role.

After the start of commercial operations or in the utility company phase, Fennovoima’s operational environment is characterized by factors typical for nuclear power plants. For the operating plant, the factors affecting the plant operations, output, production costs, and electricity demand and market price are the most vital.

Energy markets and political environment

Fennovoima is dependent on the trends related to the energy markets and political environment In Europe, the pursuit of emission-free power generation has led to vast utilization of subsidies for renewable energy resources. However, in Finland, nuclear power plays a major role in the implementationof theFinnishClimateandEnergyStrategytowardsa carbon-free society, and currently more than 33 % of electricity production is based on nuclear energy.

Also, international political trends can have an effect on Fennovoima’s project. Before the nuclear power plant is in operation, Fennovoima is dependent on the EPC Contractor, which is a Russian state company. Not only is the power plant being acquired from a Russian company, but also a significant amount of financing is being sourced from Russia.

Trends affecting the operational environment:

  • Climate change and EU-level requirements concerning e.g. greenhouse gas emissions, emission trading and renewable energy sources
  • Integration of European energy markets
  • Support for renewables leads to increased capacity, lowering electricity prices
  • Changes in the political environment
  • Transformation of the energy markets and regulatory framework Changes in customer preferences
  • Technological innovations  

Company structure

The annual general meeting of shareholders elects five to eleven actual members and four deputies to the Board of Directors for one year at a time. The CEO heads the company, assisted by the Management Team.

Fennovoima's operations are divided into departments, each headed by a member of the Management Team. He or she, in turn, reports to the CEO, who is Mr. Toni Hemminki.

The Board of Directors ensures that the CEO carries out his obligations and works for the best interests of the company.

Fennovoima has the following committees nominated by the Board of Directors: Nuclear Safety Committee, Project Execution Committee, Finance Committee, and Nominating Committee.

Fennovoima's Annual Report of the Board of Directors 2017 is available at:

Mr. Esa Härmälä (Chairman) Nominating (Chairman) Finnish
Mr. Pekka Erkkilä (Dep. Chairman) Project execution (Chairman) Finnish
Mr. Jussi Lehto Project execution, Finance (Dep. member), Nominating (Dep. member) Finnish
Mr. Seppo Siljama Finance (Dep. member) Finnish
Mr. Stefan Storholm Project execution Finnish
Mr. Djurica Tankosic Project execution USA
Mrs. Anastasia Zoteeva - Russian

The committees also included the following members:

Project Execution Committee: Mrs. Irina Andropova, Mr. Juha Mäkitalo, Mr. Sasu Valkamo (Dep. member)
Finance Committee: Mr. Esa Lager (Chairman), Mr. Juha Mäkitalo and Mrs. Anastasia Polovinkina,
Nominating Committee: Mr. Arto Räty, Mrs. Diana Shafieva
Nuclear Safety Committee: Mr. Ami Rastas (Chairman), Mrs. Kirsi Kavonius-Hietanen, Mr. Juhani Hyvärinen, Mr. Peter Tuominen, Mr. Gabor Vamos, Mr. Timo Äikäs

Mr. Toni Hemminki CEO Finnish
Mrs. Minna Forsström Project Finnish
Mr. Wilhelm Guthwert Legal Finnish
Mrs. Maira Kettunen Communications and Public Affairs Finnish
Mr. Olli Virtanen Quality Finnish
Mr. Vesa Ruuska Nuclear Safety Finnish
Mrs. Eija Salo Human Resources and Administration Finnish
Mr. Otso Torniainen Finance Finnish


Fennovoima's role in the project

Fennovoima is the owner of the Hanhikivi 1 project and will become the operator of the finished power plant. Fennovoima has granted RAOS Project Oy an EPC (engineering, procurement and construction) contract for a complete turnkey delivery of the nuclear power plant.

The plant supplier, RAOS Project Oy, has four main subcontractors. Titan-2, as the main construction contractor of the Hanhikivi 1 project, is in charge of site preparation and infrastructure work, construction of the nuclear and turbine islands, installation work, materials and equipment, as well as instrumentation and control (I&C) equipment.

Fennovoima is responsible for applying for the required licenses, including the construction and operating licenses.

Fennovoima’s own construction scope primarily covers auxiliary buildings, such as the training center, the administration building and the plant office.

Supply chain structure

Fennovoima’s supply chain structure is divided into Fennovoima’s own scope of works and the RAOS Project’s scope of works, which is agreed in the turnkey EPC contract of the nuclear power plant supply.

Fennovoima’s scope of work

The owner's scope covers the engineering and site construction work performed by contractors and consultants directly contracted by Fennovoima.

It includes all the work preceding and related to licensing, conventional permits, site preparation, construction and other work and services (e.g. the grid connection project, regional infrastructure projects, interim storage of spent fuel, and the final disposal facility for low- and intermediate-level waste), excluding the EPC contract scope.

Fennovoima’s own scope of construction mainly covers the auxiliary buildings, such as the training center, administration building and plant office.

RAOS Project’s scope of work

According to the EPC contract, the plant supplier, RAOS Project, is responsible for the supply of the nuclear power plant on a turnkey basis.

Most of the key organizations in the Hanhikivi 1 project EPC supply chain are subsidiaries of Rosatom. So far JSC Atomproekt (Rosatom subsidiary) has been selected to act as the general designer with overall responsibility for ensuring that the design of the Hanhikivi 1 nuclear power plant is developed in accordance with and fulfils Finnish legislation and regulatory requirements, and the requirements set in the EPC contract.

JSC OKB Gidropress, also a Rosatom subsidiary, has been selected to develop the basic reactor plant design. The reactor plant chief designer, Gidropress, is responsible for integrated elaboration of the reactor plant design, including systems of safety, control, diagnosis and safety assurance in the design boundaries of the reactor plant.

JSC Concern TITAN-2 has been approved as the main contractor, responsible for organization of detailed design and construction operations for the Hanhikivi 1 nuclear power plant.

OJSC Atomenergomash (AEM), which is also part of the Rosatom corporation, will provide the reactor building long lead equipment, such as the nuclear steam supply system, for the Hanhikivi 1 project.

GE Alstom Power Systems has been selected for the supply of complete turbine generator set.

Titan-2 and Rolls-Royce have signed an agreement for the I&C licensing support work. The final I&C delivery contract is under negotiation by Titan-2.

Later, RAOS Project will select the companies for the training of the operators and commissioning of the nuclear power plant.