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9 September 2009
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Areva and TVO row over Finnish nuclear project flares up
A war of words has erupted again between nuclear reactor builder Areva and Finnish utility Teollisuuden Voima Oyj (TVO), as the French firm wrote off hundreds of millions of euros in profits because of the troubled Olkiluoto reactor project.
In first-half results, Areva said operating profit would be just €16 million because of a €550 million provision related to the construction of its next generation European Press-urised Water (EPR) reactor at Olkiluoto.
The 1600MW EPR is the design that Areva hopes to build in Britain on the British Energy sites owned by EDF, but the Finnish project has been beset by delays and wrangling over the design. The reactor is not expected to be completed until 2012, instead of this year as originally forecast.
Industry experts said it was unsurprising that a project such as Olkiluoto 3, the first of its kind globally, had experienced teething troubles.
Areva, which is building the reactor with Siemens, said the reactor dome was due to be installed “very shortly” but claimed TVO had not implemented measures to speed up the work.
“The fact that TVO has not yet implemented the specific measures for speeding up the work, agreed in June 2008, is causing delays and additional costs,” said Anne Lauvergeon, Areva chief executive officer. “We will only recommence the final phases of the works when TVO has agreed upon the proposals that have been made.”
TVO said it had not been informed by Areva about any decision to stop work on the reactor or been presented with conditions for continuation of work at the Olkiluoto 3 site.
“We were surprised to read the information Areva released,” said Jarmo Tanhua, chief executive of TVO. “TVO has complied with the plant contract and valid nuclear safety methods and expects Areva to do so.
“The schedule for the construction site is challenging and Areva’s public speculation about stopping the works does not make it any easier.”
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© PE Publishing, 9 September 2009
