Hanhikivi 1 project update

SYP2016

Hanhikivi 1 project update

SYP2016

Toni Hemminki, CEO2-3 November 2016

Fennovoima Oy

Founded in 2007 to build a nuclear power plant (NPP) at a greenfield site in Pyhäjoki

Turnkey delivery of Rosatom’s AES-2006 PWR

Fuel supply contract with TVEL for first 10 years of operation

Will operate according to the “Mankala principle”: the owners receive electricity at cost price

Current head count over 300; approximately 500 people in operation phase

Construction of the power plant starts in 2018

Electricity production to begin in 2024

Project Participants

RAOS Project Oy

Fennovoima Oy

Titan-2 AtomenergomashAtomproekt

Site subcontracting chain

(e.g. Destia)

Customer, license applicant, operator

Chief designer Long-lead itemsMain Contractor

Gidropress

Reactor designer

Fennovoima’s directsubcontractors

(e.g. Rakennusliike Sorvoja)

Plant supplier

GE Steam Power Systems

Turbine generator

© FENNOVOIMA 2016 4

Plant supplier: RAOS Project Oy Chosen technology: Rosatom’s AES-2006

pressurized water reactor Electric power: 1200 MW Commercial operation for 60 years

Hanhikivi 1

9 TWh Annual generation of Hanhikivi 1 is 9 TWh. The net import of electricity in Finland was 16,3 TWh (nearly 20 percent) in 2015.

Olkiluoto 3

Loviisa 1–2

Olkiluoto 1–2

Hanhikivi 1

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Fennovoima is constructing new nuclear power to produce electricity at a stable price for its shareholders

Additionally, Fennovoima’s project increases competition in the electricity market improves Finland’s energy self-sufficiency supports the emissions reduction targets of Finland’s

energy and climate policy balances Finland’s regional development

Why Hanhikivi 1?

© FENNOVOIMA 2016 6

A Decade of Construction

Construction License Application Extensive

construction work of infrastructure and auxiliary buildings Development of the

organization

Construction License NPP construction

begins Development of the

organization Installation works Fuel loading Operating License

Electricityproduction begins

Rosatom chosenas the plant supplier Environmental

Impact AssessmentEIA Supplement to the

Decision-in-PrincipleDIP Preparatory works

at the site begin

Preparation phase Construction phaseInfrastructure and licensing

Commissioning

2013-2014 2018-20232015-2017 2024-

Decision-in-principle

Construction license

Operating license

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Project update

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RAOS Project Oy selected GE Steam Power Systems to supply the turbine generator

The agreement covers the design and supply of turbine generator equipment and expert support services for installation and commissioning works

The turbine generator unit is one of the biggest equipment deliveries of the power plant

Other big deliveries include, e.g., the reactor pressure vessel and automation

Supplier of turbine generator selected

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In 2010 the Finnish Government made a decision-in-principle on the construction of Fennovoima’s new nuclear power plant

The decision-in-principle included an obligation that Fennovoima had to submit by the end of June 2016 either

– A collaboration agreement with the other parties responsible for waste management, or

– An environmental impact assessment for a final disposal facility of its own

We are very pleased about the start of collaboration with Posiva

– A 10-year service agreement was signed with Posiva Solutions Oy in June 2016

– The decision-in-principle obligation was fulfilled with the EIA program

Collaboration in final disposal of fuel

A glance to the construction site

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Prior to construction of the plant, infrastructure and support buildings worth EUR 400-500 million will be constructed in the area

Contractors in the area at the moment include, e.g.

Rakennusliike Sorvoja (construction of the main gate building)

Ruskon Betoni (concrete delivery)

VS Turva-aidat (fencing of the plant area)

Destia (earthworks)

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Investments of EUR 400-500 million before 2018

Companies from across the country getting involved The site register is a centralized registration system

and tool to ensure that companies working at the site comply with legal and tax obligations. It contains:

– information and identifiers on the companies and workers on site;

– on the agreements between them; and– the necessary processes to their administration.

At the moment a total of 322 companies are listed on the site register (307 Finnish). The number of companies working on the site varies. Almost 1,403 people have passed the introduction

training. Approx. 200 people are working on the site on a daily basis.

About 4000 people will work at the site at the most

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7

15515

2036

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Training building – the project’s first permanent building was completed at the end of September

The builder was Oulu-based Rakennusliike Sorvoja Oy (also building the main gate building)

The building also has service space for authorities (e.g. TE office, tax authority, registry office)

Commissioning during autumn

First permanent building completed

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Oulu-based Ruskon Betoni was selected as the supplier of the concrete

The first station was completed in June and the second in August. The builder was Kalajoki-based Steel-Kamet Oy

Next the pretesting of the concrete mixes will begin

All in all, about 400,000 m3 of concrete will be needed

Concrete stations are production ready

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Hanhikivi 2024

19© FENNOVOIMA 2016

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Thank you!

Read more: www.fennonen.fi/en@THemminki