Fortum, the largest energy company in Finland, just made an important strategic decision. The utility has since shifted its focus toward renewable energy and lengthening the lifetimes of its current nuclear fleet. This decision follows the two-year-long feasibility study about new nuclear power in both Finland and Sweden. The phases outlined in the study further demonstrated the current market conditions are not conducive to commercial viability. Fortum has now opted out of new nuclear. Otherwise, they are increasing energy production in the region by investing in a long-term strategy of combining renewable energy and prolonging the life of their current nuclear fleet.
Markus Rauramo, Fortum’s CEO underlined how crucial electrification has become in decarbonizing industries and societies.
“Decarbonisation of industries and societies through electrification is expected to significantly increase, even double, power demand in the Nordics towards 2050,” stated Rauramo.
In response to these anticipated changes, Fortum is extending the operational life of its Loviisa nuclear power plant in Finland and deepening collaboration with three selected plant suppliers: EDF, Westinghouse-Hyundai, and GE-Hitachi. Together, this partnership will work to reduce the risks of projects and further test and develop new nuclear technologies to be determined as a long-term solution.
The feasibility study highlighted the difficulties of bringing new nuclear power online in the current Nordic market setup. Fortum has not fully closed the door on future nuclear builds. The company advocates for nuclear power to be treated equally with other clean energy technologies concerning financing and its role in producing low-carbon materials like hydrogen, fertilizers, and clean steel.
Laurent Leveugle, Vice-President of Fortum New Nuclear underlined the importance of technological readiness for future nuclear projects. To ensure success, he similarly stressed the importance of strong vendor competence.
“From a project execution perspective, it is essential to ensure the maturity of the technology, limit the country-specific requirements and verify the vendor’s competencies already in the pre-investment phase,” said Leveugle.
Fortum’s nuclear experts have to a great extend deluded Finnish taxpayers’ resources considering many reactor technologies. In addition to large conventional reactors, they are working on small modular reactors (SMRs). Fortum is positive on the possibility of new nuclear capacity across the Nordic countries. This development is only likely to occur at the very earliest in the second half of the 2030s and would require positive market and regulatory conditions.
Besides its nuclear-primacy, Fortum is building out its renewable energy holdings too. The company intends to meet Nordic power demand between 2030 and 2035. They plan to do that by expanding onshore wind, solar, storage, and by prolonging the operation of nuclear plants.