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Finland backs green hydrogen as Fortum pauses nuclear expansion

28 March 2025, Helsinki Times 

Finnish utility Fortum has ruled out new investments in nuclear power in the near term, citing low electricity prices in the Nordic market and high construction costs. The announcement came as Finland inaugurated its first industrial-scale green hydrogen plant, marking a shift in focus toward alternative energy technologies.

Fortum concluded a two-year study into the feasibility of building new nuclear reactors and determined that such investments are not commercially viable under current market conditions.

New nuclear could provide new supply to the Nordics earliest in the second half of the 2030s, if market and regulatory conditions are right,” said Markus Rauramo, CEO of Fortum.

The company will instead focus on expanding renewable power generation, increasing storage capacity, and extending the life of existing nuclear facilities, including the Loviisa nuclear plant.

The company’s Vice President for New Nuclear, Laurent Leveugle, said a risk-sharing model would be required to make future nuclear investments possible.

“We are not saying that the state has to pay for it, but that the risk must be shared with the different parties: technology providers, investors, utilities, and also the state,” Leveugle told Reuters…………………….

While Fortum has paused new nuclear plans, Finland is pressing ahead with new green energy initiatives. On 26 March 2025, P2X Solutions inaugurated the country’s first industrial-scale green hydrogen production plant in Harjavalta. The event was attended by Alexander Stubb, President of the Republic of Finland.

“Finland has everything it takes to become a clean energy superpower,” Stubb said during his speech at the inauguration……………………………………………………………………………

As Fortum turns to renewables and lifetime extensions for existing nuclear facilities, and P2X accelerates hydrogen development, Finland’s energy policy is shifting toward flexible and decentralised solutions.

The Nordic power market has experienced prolonged periods of low electricity prices, driven by increased renewable capacity and lower demand growth. Fortum has warned that these conditions are not sufficient to support capital-intensive projects like nuclear reactors without regulatory reforms or direct financial support……………………………………………..

Finland’s approach to energy diversification comes amid broader European efforts to reduce reliance on fossil fuels and improve energy security. Green hydrogen and advanced storage systems are seen as essential components of this transition.

Fortum’s position reflects growing caution among European utilities over the costs and risks associated with new nuclear builds. The company has yet to release any cost estimates for new reactors, but industry analysts say capital requirements often exceed €10 billion per unit and construction timelines stretch over a decade.

By contrast, modular hydrogen projects like those developed by P2X Solutions involve lower upfront costs and shorter lead times. They also benefit from growing political and financial support across the EU…………………….https://www.helsinkitimes.fi/business/26416-finland-backs-green-hydrogen-as-fortum-pauses-nuclear-expansion.html

April 1, 2025 - Posted by Christina Macpherson | Finland, renewable