The Finnish government has given approvals to Fennovoima, the Finnish energy company, and Rosatom, the Russian energy company, to construct a nuclear power plant in Pyhäjoki, a municipality in western Finland.
Fennovoima, who will be leading the project, said that construction for the nuclear plant will begin in 2018, with commercial operations expected to begin in 2024.
Rosatom currently holds a 34% minority stake in the group, whilst Finland’s energy giant, Fortum, has announced last week its plans to invest up to 15% in the project. This will satisfy the Finnish government’s requirement of having the project at least 60% Finnish-owned.
The joint project is estimated to cost between €4 billion ($4.9 billion) and €6 billion, and once completed, the 1,200 MW plant will supply electricity at a price of less than 50 euros per megawatt-hour, a rate that represents a good deal for decades to come.