In Finland, Fennovoima has announced that it has terminated the contract for the delivery of the Hanhikivi 1 nuclear power plant with Rosatom with immediate effect. Both the design and licensing work and works at the Hanhikivi 1 site with RAOS project, end.
The decision to terminate the EPC contract with RAOS Project is not made lightly. In such a large project there are significant complexities and decisions are made only after thorough consideration. We fully acknowledge the negative impacts and do our best to mitigate those, said Esa Härmälä, Chairman of the Board.
Fennovoima is a Finnish energy company that builds Hanhikivi 1 nuclear power plant on a greenfield site on Pyhäjoki, Hanhikivi peninsula.
Fennovoima had purchased the nuclear power plant as a turnkey delivery. The plant was, up to today, being supplied by RAOS Project Oy, the Finnish subsidiary of Russia-headed Rosatom Group.
RAOS Project is responsible for the design, construction, installation, and commissioning of the power plant. Fennovoima is the license applicant and operator of the plant.
Representing an investment of approximately EUR 7–7.5 billion, once commissioned, the Hanhikivi 1 nuclear power plant would account for up to 10 percent of Finland’s power supply and is estimated to have a 60-year lifespan.
Fennovoima submitted the construction license application in the summer of 2015 and was aiming to get the construction license for Hanhikivi 1 by summer 2022.
Construction of the power plant itself would begin in the summer of 2023, with commercial operation of the plant would begin in 2029.
Significant and growing delays
Fennovoima has terminated the EPC contract of plant delivery with RAOS Project due to RAOS Project’s “significant delays and inability to deliver the project.”
According to a statement, there have been “significant and growing delays” during the last years.
The war in Ukraine has worsened the risks for the project, and RAOS has been unable to mitigate any of the risks.
This means, that cooperation with RAOS Project is terminated with immediate effect, and both the design and licensing work and works at the Hanhikivi 1 site with RAOS project end.
Unfortunately, the termination of the EPC contract is estimated to have a significant employee impact in Fennovoima and is expected to impact also the supply chain companies and Pyhäjoki region. Our main objective is to support our employees by keeping them informed and working in close cooperation with both our employees and employee representatives. In addition, we focus on preserving the site, said Joachim Specht, CEO at Fennovoima.
