Finland Times

The government will go ahead with the proposed Fennovoima nuclear power plant project   in Pyhäjoki following the assurance that at least 60 percent of it is owned by domestic companies.

The Ministry of Employment and the Economy  will continue the assessment of the application submitted by Fennovoima on 30 June 2015 for the construction of the Hanhikivi 1 nuclear power plant as sufficient certainty was received on Wednesday that the requirement of ownership of the company is in domestic hands has been met, said a government press release.

The required domestic ownership was established on Wednesday when two companies- Fortum Oyj and SRV Group Plc- announced that they would become shareholders in Voimaosakeyhtiö SF, the company which owns Fennovoima.

Meanwhile, Outokumpu Oyj announced that it would be increasing its share of ownership in the company.

The approximately 6.6 percent ownership of Fortum and the 1.8 percent ownership of SRV in Fennovoima as well as the 1.8 percentage point increase in ownership by Outokumpu form, together with previous domestic ownership, a holding in the company that exceeds 60 percent.

“On the basis of the new ownership information announced today (Wednesday) we can note that we have received sufficient guarantees that the domestic share of ownership in the companies that are committed to further financing exceed the required 60 % level both de facto and de jure,” Minister of Economic Affairs Olli Rehn said, adding that consequently, it is at the level required for the overall interest of society as defined by the government and parliament.

A formal government decision on a construction licence would have been made in the case if the assessment of the domestic ownership condition would have been negative.

If the ownership condition would not have been met, the ministry would have proposed to the government session on August 6 that the construction licence application be rejected.

“As the condition for the domestic ownership has been met, the construction licence application process can be continued in accordance with the Nuclear Energy Act. In this context it is worth remembering the importance of the project to the society,” said the minister.

Building nuclear power will help decrease greenhouse gas emissions and to promote the operation of the electricity market, attain self-sufficiency and ensure sufficient output in electricity production, Olli Rehn added.

“Finland imports nearly one fifth of the electricity used in the country and consumption is expected to increase from the current 83 terawatt hours by 925 terawatt hours by 2035,” he said.

The production by Hanhikivi 1 could cover approximately 10 percent of the country’s electricity demand by the end of the 2020s.

The project also has considerable effects on the regional economy in Northern Ostrobothnia. The employment impact during the construction period will be tens of thousands of person-years.

At the level of the national economy, the positive effects on both the gross domestic product and employment are estimated to be approximately 0.2-0.3 percentage points.

In Finland, investments in nuclear power do not require funding from the state.

The ministry will handle the construction licence application according to the Nuclear Energy Act which may take at least two years. Especially nuclear safety related matters as well as other issues regarding safe construction and operation of the plant will be assessed.

At the same time, the Radiation and Nuclear Safety Authority (STUK) will carefully assess issues related to the technical safety of the plant.

The ministry will start a statutory circulation of the construction license application for comments towards the end of the summer, and citizens will also be able to submit their opinions or statements regarding the application by the end of the year.

Comments are also requested from other ministries, authorities, municipalities and civic organisations as well as the Swedish authorities in accordance with the agreement on construction of nuclear power plants at border areas.  

According to the 2010 decision-in-principle Fennovoima must by the end of June 2016 present either an agreement on nuclear waste management cooperation with the parties currently under the nuclear waste management obligation, TVO and Fortum, or an environmental impact assessment program concerning its own final disposal facility for spent nuclear fuel.

The ministry will continue to monitor the ownership base of the company during all phases of the project, also after the completion of the plant in order to ensure that the 60 percent domestic ownership share remains in all circumstances.