Olkiluoto nuclear plant gets €90m loan for upgrades just two years after going live

The European Investment Bank is lending energy supplier Teollisuuden Voima Oyj (TVO) €90 million ($104m) to upgrade two nuclear power units in Finland.

The units in question are reactors 1 and 2 on the southwestern island of Olkiluoto. TVO will upgrade the automation and control systems and replace the steam separators. The aim to ensure safe operation and comply with Finnish and EU nuclear-safety legislation.

According to TVO, this project falls under a long-term investment programme to ensure efficient operation and follows other EIB-backed enhancements at the site in 2016. It will be implemented over a period of several years.

The island of Olkiluoto produces about 28% of Finland's electricity needs. The plant consists of two boiling water reactors, each with a capacity of 890MW, and one EPR type reactor (unit 3) with a capacity of 1,600MW.

TVO claims the Olkiluoto 3 plant unit is the third most powerful nuclear power unit in the world. It finally began regular electricity production in April 2023 after suffering a decade of delays and cost overruns totalling approximately €8 billion ($9 billion).

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“By supporting safety upgrades at Olkiluoto, we are helping Finland strengthen its energy mix with reliable, low-carbon power,” said EIB Vice-President Karl Nehammer.

According to the EIB, financing this project aligns with the EU’s Energy Roadmap 2050, which considers nuclear energy a critical part of the continent’s future energy mix.

Furthermore, it helps to support the strategic objectives around energy security, competitiveness and energy autonomy.

Nehammer added: “This investment supports Finland’s energy independence and contributes to the EU’s goals of ensuring secure and clean electricity for homes and businesses.”

These are considered key factors which have led to the EIB’s recent pivot concerning investments in the nuclear fuel cycle, investments which were largely avoided for the past four decades.

In April this year, the EIB loaned Orano €400 million ($462 million) to increase uranium enrichment production capacity by 30% – an additional 2.5 million SWU (separative work units) – to strengthen overall enrichment capacities in Europe.

Ambroise Fayolle, Vice-President of the EIB, confirmed that the goal of this funding is to contribute to European energy independence.

The bank is even considering investing in newer technologies such as SMRs in an effort to boost EU competitiveness in the sector.

According to Bloomberg, the EIB would now be looking at venture-debt investments in the tens of millions of euros. This will help de-risk early-stage projects and provide an important signal to other investors.