Finland, Reactor Financial Disaster

THE THIRD REACTOR of Olkiluoto Nuclear Power Plant has been a financial disaster for the two plant suppliers, France’s Areva and Germany’s Siemens. Teollisuuden Voima (TVO), the company operating the plant, communicated last week that the suppliers have pledged to inject an additional 80 million euros in capital into a fund set up to guarantee the completion of activities during the warranty period. The third plant unit has experienced numerous faults and disruptions since it was officially inaugurated in 2022. TVO ordered the plant from the suppliers under a turnkey agreement for a fixed price of roughly three billion euros more than 20 years ago. The groundbreaking ceremony was held in 2005, with the completion date set for 2009. Ultimately, the unit was completed 14 years behind schedule, with the original budget comfortably exceeded. The unit began commercial electricity production in mid-2023. Helsingin Sanomat on 12 December reminded that Areva estimated already in 2012 that the plant would ultimately cost around 8.5 billion euros. The endeavour eventually bankrupt the company, resulting in intense talks in 2016 as the French government decided to incorporate healthy parts of the company into the state-owned Électricité de France (EDF). The concern was that the plant supplier would not be left with the funds and expertise to complete the project.

Helsinki Times 19th Dec 2024 
https://www.helsinkitimes.fi/finland/finland-news/domestic/25890-hs-olkiluoto-3-has-been-a-financial-catastrophe-for-areva-siemens.html

In a recent press release dated December 12, 2024, the company announced, “The funds reserved for their completion in the fund mechanism were depleted in the autumn of 2024.” This statement highlights the ongoing financial challenges faced by the Olkiluoto 3 nuclear power plant, which has been plagued by multiple operational issues since its official inauguration in 2022. Ultimately, the third plant unit was completed a staggering 14 years behind schedule, with expenses ballooning well beyond initial estimates. It commenced commercial electricity production in mid-2023, marking a significant milestone but also underscoring the lengthy and tumultuous journey of the project.

Nord News 19th Dec 2024 
https://nord.news/en/2024/12/19/olkiluoto-3-financial-disaster-strikes-areva-and-siemens-as-project-costs-soar-to-e8-5-billion/