Finland Times

Tapio Kuula, President and CEO of Fortum spoke at a press conference in Espoo on Tuesday. Photo Lehtikuva.

Energy company Fortum on Tuesday announced that it is ready to take a minority stake in the Finnish Fennovoima nuclear power project, after it undergoes a successful restructuring.

In a release, Fortum said it plans to increase its hydro portfolio by 60 per cent through the restructuring of TGC-1, Territorial Generating Company in Russia. 

As part of the restructuring, Fortum said, it will establish a joint venture with Rosatom to own the hydro assets of TGC-1, while Gazprom Energoholding continues with the heat and thermal power businesses of TGC-1.

File Photo Lehtikuva.

Fortum would obtain more than a 75 per cent ownership in the new hydro power company based on its current stake in TGC-1, while Rosatom would have less than a 25 per cent minority holding in the new hydro power company.

Fortum, Gazprom Energoholding and Rosatom have signed a protocol to start the restructuring process, confirmed Fortum.

Fortum said, provided it obtains 75-plus-per cent ownership in TGC-1 hydro assets, it will be ready to participate with a minority stake, which is a maximum of 15 per cent, in the Finnish Fennovoima nuclear power project on the same terms and conditions as the other Finnish companies currently participating in the project.

“Fennovoima’s nuclear project is important for Finland, while Fortum’s participation and competencies are extremely valuable for the project. It will also provide Fortum with possibilities to grow in the area of nuclear expert services,” said Fortum Corporation President and CEO Tapio Kuula in the release.

Before the government’s approval of Fennovoima nuclear power plant project, Economic Affairs Minister Jan Vapaavuori had said that a condition had been set of having at least 60 per cent Finnish ownership.