Application for a Construction License Pursuant to Section 18 of The

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Application for a Construction License Pursuant to Section 18 of The Application for a Construction License pursuant to Section 18 of the Application for a Construction License pursuant to Section 18 of the Nuclear Energy Act (990/1987) for the Hanhikivi 1 Nuclear Power Plant 1 Nuclear Power the Hanhikivi for (990/1987) pursuant a Construction License to SectionAct Application for 18 of the Nuclear Energy Nuclear Energy Act (990/1987) for the Hanhikivi 1 Nuclear Power Plant June 2015 Updated August 5, 2015 Application for a Construction License pursuant to Section 18 of the Nuclear Energy Act (990/1987) for the Hanhikivi 1 Nuclear Power Plant June 2015 Updated August 5, 2015 Content Construction License Application for Hanhikivi 1 nuclear power plant Application 8 Applicant 8 Project 8 Decisions-in-principle 9 Plant site 9 Schedule and manner of implementation 10 Organization and expertise 11 Financial resources 11 Nuclear power plant type 12 Security arrangements 12 Nuclear fuel management 13 Nuclear waste management 13 Submitting construction license materials to STUK 14 Fulfillment of the prerequisites for granting a construction license, and enforceability of the license decision 14 Appendices Information about Fennovoima 1A Fennovoima Ltd trade register extract, articles of association and shareholder register 17 Summary 18 1B Fennovoima’s ownership base 21 Summary 22 Ownership structure of Fennovoima 23 1C A description of the financial resources and economic viability of Fennovoima’s 25 nuclear power plant project, and the project’s cost estimate and financing plan Summary 26 Financial resources of the project 27 Financing plan for the nuclear power plant project 27 Economic viability of the nuclear power plant project 28 Provision for financial risks and uncertainties 31 References 33 1D Fennovoima Ltd financial statements 2010–2014 35 Summary 36 3 Fennovoima's organization and available expertise 2A Description of the project implementation, the expertise available to Fennovoima, 39 and Fennovoima organization during the licensing and construction phases Summary 40 Project phases 41 Fennovoima’s organization in the licensing and construction phases 43 Expertise available to Fennovoima 48 Other expertise available to Fennovoima Expertise within the Rosatom Group and subcontractors 50 2B An outline of Fennovoima’s planned operating phase organization 53 Summary 54 Organization and requirements in the operating phase 55 Structure of the operating organization and personnel resource needs 55 Renewal of operating license 58 Decommissioning 58 Nuclear power plant site 3A An account of the environmental impacts of the construction and operation of the 61 nuclear power plant, as well as of measures to prevent and mitigate the adverse impacts Summary 62 Environmental management system 63 Environmental impact assessment 63 The current state of the environment 63 Environmental impacts of the construction phase and the prevention and mitigation of adverse impacts 65 Environmental impacts of the operating phase and the prevention and mitigation of adverse impacts 68 Environmental and water permits 79 References 79 3B Additional surveys required by the Ministry of Employment and the Economy on the 81 impacts of the nuclear power plant on the marine environment and fishery during operation Summary 82 Survival and spread of non-indigenous species in the Pyhäjoki sea area 83 Populations and migration of seals 85 Fish and fishing industry 86 Routes of migrating fish and the access of fish into spawning rivers 93 Bottom dominated by submerged macrophytes, and charophyte meadows 96 The targets and implementation of the Finnish Marine Strategy 100 References 101 3C A description of the plant site in Hanhikivi, Pyhäjoki, and Fennovoima’s right to use 105 the planned site Summary 106 Hanhikivi headland in Pyhäjoki as a nuclear power plant site 107 Planning required by the project 111 Ownership of the nuclear power plant site 116 Safety of the nuclear power plant 4A A description of the type and technical principles of the nuclear facility to be constructed, 119 and the planned suppliers of the essential parts Summary 120 Technology and safety of Rosatom’s AES-2006 nuclear power plant 121 Suppliers of essential components 129 4B Description of safety principles to be observed at the nuclear power plant and 131 an assessment of their fulfillment Summary 132 General principles of nuclear energy use 133 Safety requirements 136 4 Construction License Application for Hanhikivi 1 Nuclear Power Plant Nuclear fuel and nuclear waste management at the nuclear power plant 5A Nuclear fuel management plan 149 Summary 150 Nuclear fuel procurement and security of supply 151 Structure of the fuel assembly 152 Uranium requirement 153 Transportation and storage of nuclear fuel 153 Quality control of nuclear fuel management and minimization of the environmental impact 153 References 154 5B Overall nuclear waste management plan 157 Summary 158 Management of low and intermediate level nuclear waste 159 Management of spent nuclear fuel 163 Decommissioning of the nuclear power plant 166 Overall nuclear waste management schedule 166 Total costs of nuclear waste management 166 5 6 Construction License Application for Hanhikivi 1 Nuclear Power Plant Construction License Application for Hanhikivi 1 nuclear power plant 7 Construction License Application for Hanhikivi 1 nuclear power plant Application In this application, Fennovoima Oy (hereinafter referred to as “Fennovoima” or “the company”) requests from the Government a license pursuant to section 18 of the Nuclear Energy Act (990/1987) to construct a nuclear power plant as referred to in section 3, subsection 1, paragraph 5 a of the Nuclear Energy Act at the planned site on the Hanhikivi headland, Pyhäjoki. The plant unity to be built will comprise a nuclear power plant unit intended for the production of electricity, and nuclear facilities required for the operation of the power plant and located at the same plant site, including storage facilities for fresh nuclear fuel, processing and storage facilities for low and intermediate level reactor waste, and interim storage facilities for spent nuclear fuel. Applicant Fennovoima is a Finnish limited liability company whose business identity code is 2125678-5. The company is domiciled in Helsinki, Finland. An extract from the trade register, the articles of association and shareholders' register of the company are appended to this application as Appendix 1A. Fennovoima was founded for the purpose of producing electricity at cost price for the needs of its owners, and the company operates in accordance with the Mankala principle. After the completion of the nuclear power plant, the company shareholders will be, under the Mankala principle, entitled to the electricity produced at the facility in proportion to their ownership. They are also obligated to cover all the costs incurred by the company in its electricity production operations as has been stated in the articles of association and the shareholders’ agreement. In this application, companies that are entitled to the electricity produced by Fennovoima based on their direct or indirect ownership of shares are referred to as Fennovoima’s shareholders. In the Government's decision-in-principle M 6/2014 vp, described in the decisions-in- principle section of this application, the Government stated that a minimum of 60% of Fennovoima's ownership must be held by operators domiciled within the EU or the EFTA. Of Fennovoima's share capital, 66% is owned by Voimaosakeyhtiö SF, and 34% by RAOS Voima Oy. More than 60% of Fennovoima's ownership is held by operators who have committed to further financing of the project, and who are domiciled within the EU or EFTA. For a more detailed description of Fennovoima’s ownership base, see Appendix 1B of this application. Project Fennovoima will build at the plant site on the Hanhikivi headland, Pyhäjoki, one nuclear power plant unit with a thermal power of 3,220 MW and an electrical power output of 1,200 MW and other nuclear facilities stated in the decision-in-principle and required for the operation of the power plant unit. Fennovoima will use the nuclear power plant to produce energy for its owners. The unit's planned service life is 60 years. Fennovoima's nuclear power plant unit is supplied by RAOS Project Oy, which is a part of the Rosatom Group. The plant type is Rosatom's AES-2006 pressurized water reactor. The plant supply contract concluded by Fennovoima is based on a turnkey delivery model to be carried out by one main supplier. This means that the plant supplier will be responsible for the majority 8 Construction License Application for Hanhikivi 1 Nuclear Power Plant of the design of the nuclear power plant, acquisition of components, and construction of the facilities. Fennovoima's scope of work will mainly consist of the construction of administrative buildings, such as the office facilities and the visitor center. Fennovoima will also be responsible for building the interim storage facility for spent nuclear fuel and the repository for low and intermediate level reactor waste. The interim storage facility for spent nuclear fuel will be a building separated from the rest of the facilities. A construction license for the storage facility is applied for by this application, but the detailed design and construction of the facility will not be carried out until the nuclear power plant unit is operational. The repository for low and intermediate level reactor waste will be built at a later stage, and it will be used for the final disposal of the low and intermediate level nuclear waste generated in the operation and decommissioning of the nuclear power plant. Construction and operating licenses for the repository will be applied for at a later stage. Decisions-in-principle Fennovoima's nuclear power plant construction project has been found to be in line with the overall good of society in the decision-in-principle pursuant to section 11 of the Nuclear Energy Act, and thus meets the requirement set out in section 5 of the Nuclear Energy Act.
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