Fortum's role in Hanhikivi project still uncertain
Fortum's future participation in the Hanhikivi nuclear power plant project remains unclear as the Finnish electricity producer's talks with Rosatom and Gazprom Energo on restructuring Russia's territorial generating company TGC-1 have yet to reach agreement.
The Hanhikivi 1 project in Pyhäjoki in northern Finland is scheduled to start generating electricity by 2024.
The Finnish government has said that a construction licence for the project will only be issued once Finnish ownership is more than 60%, which must be achieved before the end of June 2015. The country's Voimaosakeyhtiö SF said in April it had increased its share in the project to 55.5% from 50.2%, while Fortum said in December that it would be ready to participate with a minority - maximum 15% - stake, provided that Fortum obtains a 75% or more ownership in the hydro assets of TGC-1.
Rosatom, the Russian state nuclear corporation, agreed to take a stake of 34% in the Hanhikivi project - the major share previously held by Germany's EOn - and arrange debt finance for the plant's construction. Rosatom deputy director general Kirill Komarov said last month that the corporation does not plan to increase its 34% stake.
In a statement yesterday, Espoo-headquartered Fortum said the negotiations had not reached a conclusion that would make it possible for Fortum to decide on its participation in the Fennovoima nuclear power project. Should the talks be continued later, and Fortum received the majority ownership in TGC-1 hydro assets, the company said it would still be ready to participate with a minority share in the project on the same terms and conditions as the other Finnish companies currently participating in it. It added that it was not possible to estimate the schedule of further talks.
Fortum's interim CEO and CFO Timo Karttinen said: "We are continuing negotiations with all parties involved but it will take time. For Fortum, the TGC-1 restructuring and the Fennovoima project are a comprehensive package where both parts need to be completed."
In December, Fortum, Gazprom Energo and Rosatom signed a protocol to start a restructuring process for the ownership of TGC-1. As part of the restructuring, Fortum would found a jointly-owned company with Rosatom for TGC-1's hydro assets. Fortum says its goal is to transfer its current, 29.45% stake in TGC-1 to a majority stake in the joint venture.
Fortum's operations focus on the Nordic and Baltic countries, Russia and Poland.
Researched and written
by World Nuclear News
