3 Jul (NucNet): Finnish utility Fennovoima and Rusatom Overseas, a subsidiary of Rosatom, have signed an agreement that could lead to a contract being signed for Russia to build the proposed Hanhikivi-1 nuclear reactor at Pyhäjoki in northern Finland.
Rusatom Overseas also said in a statement today that negotiations are being held for it to acquire a 34 percent share of Fennovoima.
The nuclear agreement could lead to the signing of a nuclear power plant supply contract, Fennovoima said. In the agreement the companies have set “common targets” according to which negotiations will be carried out during the rest of 2013.
The contract for supplying Hanhikivi-1 is scheduled to be signed by the end of 2013, the two companies said.
The reactor technology under consideration is Rosatom’s 1,200-megawatt pressurised water reactor AES-2006.
Rusatom Overseas said the plant meets International Atomic Energy Agency and European Union requirements, but for licensing purposes would be adapted to meet Finnish national safety standards.
In Finland, two Russian VVER-440 reactor units have been in commercial operation at Fortum’s Loviisa nuclear plant since 1977 and 1981.
Direct negotiations between Fennovoima and Rusatom Overseas began in April 2013. Fennovoima also held talks with Toshiba concerning its 1,600 MW Advanced Boiling Water Reactor (EU-ABWR), but today’s statement said the talks will now continue only with Rusatom Overseas.
Fennovoima said in February 2013 it had chosen Toshiba to take part in negotiations to build Hanhikivi-1, but left the door open to other bidders should it decide to build a smaller unit instead.
Fennovoima said it had chosen Toshiba as supplier if it went ahead with original plans for a 1,600 MW reactor, dropping rival candidate Areva and its European Pressurised Water Reactor (EPR).
But Fennovoima also said it was considering building a medium-sized reactor instead and viewed Toshiba, Areva and Russia’s state nuclear corporation Rosatom as possible suppliers of a smaller unit.
The company started to look at other options after its biggest shareholder, German utility E.ON, last year decided to exit the project.
Fennovoima is owned by 60 Finnish companies representing the industry, trade, and energy sectors. Before the plant supply contract is signed, all of Fennovoima’s owners must decide on their continuation in the project, Rusatom Overseas said.
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