Finland power utility Fortum has reached an agreement with Gazprom Energoholding to start restructuring their ownership in the Territorial Generating Company TGC-1 in Russia. TGC-1 owns and operates 40 hydro power plants (about 3 GW, 12-13 TWh/year produced on average) and 14 thermal power plants (about 4.3 GW and 17 TWh/year) in North-West Russia and operates heat distribution networks in St. Petersburg. Fortum and Gazprom Energoholding have decided to split the company, in which they own 29.5% and 51.8%, respectively, and to transfer hydropower assets to a joint venture of Fortum (75%) and Rosatom (25%); Gazprom Energoholding would continue operating TGC-1's thermal and heat assets. The transaction will increase Fortum's equity hydropower capacity, from 885 MW (29.5% of 3 GW) to 2,250 MW (75% of 3 GW).
Provided that Fortum obtains a 75% ownership in TGC-1 hydro assets, the company plans to take part with a minority stake (15% maximum) in
the Fennovoima nuclear power project in Finland. Fennovoima is a a consortium of Finnish industrials and Rosatom (34%), which plans to develop a 1,200 MW nuclear power project, Hanhikivi, in northern Finland. It will feature a AES-2006 pressurized water reactor supplied by Rosatom. Fennovoima is expected to file for a construction licence by June 2015. The project could be commissioned in 2024.
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