The decision to end the EPC contract was influenced by the ongoing conflict in Ukraine
Fennovoima also said in a statement that there have been significant and growing delays during the last years and the Russian invasion of Ukraine has worsened the risks for the project.
Esa Härmälä, chairman of the Fennovoima´s Board, said:
- 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
The Hanhikivi 1 project would consist of a 1.2 GW AES-2006 reactor supplied by Rosatom.
Rosatom said in a statement it would defend its interests in the Hanhikivi 1 construction project.
The company stated:
- We are extremely disappointed that Fennovoima has taken the decision to terminate its EPC contract
- We would like to highlight that the initiative from Fennovoima’s management was taken without any detailed consultation with the project’s shareholders
- The reasons behind this decision are completely inexplicable to us
- The project has been progressing and we had established a good working relationship with our client, which Fennovoima’s CEO had repeatedly communicated to shareholders and in the media
The company estimated that the construction of the power plant would begin in the summer 2023.
Commercial operation of the plant would thus begin in 2029.