Fortum and Google sign power purchase agreement for Loviisa nuclear plant
Fortum and Google have entered into a 22-year power purchase agreement for Fortum's Loviisa nuclear power plant. The deal secures the implementation of an investment program to extend the plant's operational lifetime.
Helsinki – Energy company Fortum and technology giant Google have signed a 22-year power purchase agreement (PPA) for Fortum's Loviisa nuclear power plant. The agreement will cover up to 50% of the plant's generation capacity until 2050.
This transaction marks the first large-scale nuclear PPA in the Nordic countries and one of the first globally. The deal provides Fortum with the economic certainty needed to proceed with an approximately €1 billion investment program aimed at extending the Loviisa plant's operational lifetime through modernization and refurbishment.
The operating licenses for the Loviisa units are set to expire in 2027 and 2030, but the Finnish government granted extensions until 2050 in spring 2023. The lifetime extension requires significant investments, with roughly €700 million of modernization projects still awaiting final investment decisions.
Fortum views the agreement as a potential stepping stone for developing new nuclear power projects. The company has acquired land near the Loviisa plant for potential new reactor sites. Google, as a major electricity consumer, could serve as a partner in exploring business models and risk-sharing for future nuclear ventures.