Fennovoima cancels contract for Hanhikivi 1 nuke plant

The nuclear power company Fennovoima has terminated the engineering, procurement and construction (EPC) contract of the planed nuclear power plant in Pyhäjoki with Russian state firm Rosatom.

The contract has been terminated due to RAOS Project's significant delays and inability to deliver the project, said Fennovoima in a press release on Monday.

There have been significant and growing delays during the last years. The war in Ukraine has worsened the risks for the project. 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 work in close cooperation with both our employees and employee representatives. In addition, we focus on preserving the site,” said Joachim Specht, The Chief Executive Officer of Fennovoima.

“The decision to terminate the EPC contract with RAOS Project is not made lightly. In a such a large project there are significant complexities and decisions are made only after thorough considerations. We fully acknowledge the negative impacts and do our best to mitigate those,” said Esa Härmälä, chairman of the Board.

Meanwhile, the Ministry of Economic Affairs and Employment considered the termination of Pyhäjoki plant delivery contract justified and consistent, said the ministry in a press release.

The termination of the contract is an understandable measure in this situation.

Under the Nuclear Energy Act, the Ministry of Economic Affairs and Employment is the responsible ministry to which Fennovoima submitted a construction licence application addressed to the Government in 2015 and the latest updated version in April 2021.

Based on new information, the Ministry of Economic Affairs and Employment will soon examine and assess the effects of the contract termination and the company’s measures, the press release added.