Fennovoima's press release January 14, 2009

FENNOVOIMA APPLIED FOR DECISION-IN-PRINCIPLE

Today, January 14, Fennovoima submitted its application to the Finnish government for a decision-in-principle on the construction of a nuclear power plant.

The key justifications for the Fennovoima project are enhancement of Finland’s electricity self-sufficiency, fulfillment of the electricity needs of businesses and households, securing the competitiveness of shareholder companies significant for the entire national economy, improving the functionality of the electricity market and the balanced regional development of Finland.

The price of electricity is an important competition factor for the metal industry, food industry, building material industry, retail trade and local energy companies involved in the Fennovoima project. In order to safeguard the potential for investment and employment in Finland, Fennovoima’s 64 shareholders need their own stable and reasonably priced electricity production. At present their self-sufficiency in electricity procurement is very low.

Today nuclear power provides close to one quarter of Finland’s electricity. Production remains, however, in the hands of only a few companies. Fennovoima will improve the functioning of the wholesale markets by increasing electricity supply and by introducing new actors into electricity production. The increased competition will benefit all end users of electricity.

Finland’s energy supply is based on decentralized and diverse production. One particular strength of the Fennovoima project is that it makes it possible to decentralize Finland’s nuclear power production geographically, in terms of ownership and in terms of organization.
Fennovoima is presenting three site alternatives for the nuclear power plant: Hanhikivi in the municipality of Pyhäjoki, Gäddbergsö in the municipality of Ruotsinpyhtää and Karsikko in the municipality of Simo. The alternative sites fulfill the requirements for constructing a nuclear power plant and are suitable for the project. Once the decision-in-principle has been ratified by Finnish parliament, Fennovoima will select the final power plant site.

The massive investment of the nuclear power plant will benefit not only the site municipality and its surrounding regional economy, but also the entire national economy. All site alternatives are located in government-defined development areas.

Fennovoima will prepare the construction of a nuclear power plant with a rated electricity output of 1,500–2,500 MW at the selected site. The alternatives are to construct either one large nuclear reactor or two smaller reactors. Fennovoima’s plant alternatives are the EPR and SWR 1000 by Areva NP, and the ABWR by Toshiba. All alternatives can be designed to produce district heating in addition to electricity.

Fennovoima fulfills the requirements set for an applicant for a decision-in-principle. The new nuclear power plant can be built safely and in compliance with Finnish regulations. Fennovoima, with the backing of the nuclear expert E.ON and its other industrial shareholders, has the necessary expertise and resources to build the power plant as planned. Fennovoima has the goal to start electricity production by 2020.

More details can be obtained from:
Tapio Saarenpää, CEO, tel. +358 20 7579 202
Maira Kettunen, Communication Manager, tel. +358 20 7579 213
Timo Kallio, Executive Vice President, Construction, tel. +358 20 7579 207 (sites and Environmental Impact Assessment)
The application for the decision-in-principle can be found on the Fennovoima website, www.fennovoima.fi/dip. The website also contains printable images from the application. Further information: Juuso Liljavirta, tel. +358 50 5555 287. A printed publication may be ordered at: info@fennovoima.fi.