Fortum and Google have entered a long-term strategic energy partnership in Finland, anchored by a 22-year power purchase agreement that will provide the financial foundation for the continued operation and upgrade of the Loviisa nuclear power plant through the end of its operating licenses in 2050.

A Deal Built Around Loviisa's Future

The power purchase agreement covers the lifetime extension period of the Loviisa nuclear power plant and will contract for up to 50% of the plant's generation capacity.

It begins in 2028 with a smaller contracted volume before scaling up to 50% of capacity for the 2030 to 2049 period. Without the lifetime extension investment program, the plant could not continue operations beyond 2030.

Loviisa currently employs approximately 580 people and provides around 10% of Finland's electricity. Fortum has described the plant as a fossil-free asset whose continued operation would help stabilize electricity prices and support the long-term resilience of Finland's national grid.

Fortum has an ongoing investment programme for Loviisa valued at approximately USD 1.16 billion, aimed at extending the plant's life until 2050. To date, approximately 80% of the required projects and around USD 812 million in capital expenditure are still pending investment decisions. According to Fortum, the PPA with Google will provide the revenue certainty needed to proceed with investments associated with 100% of the lifetime extension program.

Beyond sustaining the existing plant, the agreement is expected to enable a new 10-megawatt power increase at Loviisa, in addition to a previously planned 38-megawatt uprate that is expected to come online in 2028.

Financial Impact on Fortum

The PPA is expected to increase Fortum's Group comparable return on net assets by approximately 1.4 percentage points over time, once 50% of the plant's generation capacity is contracted under the agreement.

Fortum President and CEO Markus Rauramo said the partnership provides the visibility the company needs to invest in new low-carbon power generation capacity in what he described as an uncertain market environment with low visibility and highly volatile electricity prices.

"Long-term partnerships like the one between Fortum and Google are essential to making that happen," Rauramo said, adding that the collaboration with Google provides a strong foundation for the continued development and reliable operation of the Loviisa plant for decades to come.

A Broader Strategic Partnership

Beyond the power purchase agreement, the two companies have signed a Memorandum of Understanding covering the development of new nuclear and renewable energy capacities, flexibility solutions, and energy portfolio management services.

The MoU is intended to support both companies' growth in Finland and bring additional energy supply to benefit Finland's grid, as well as the households and businesses it serves.

The parties have structured their overall arrangement to ensure that as demand for artificial intelligence services grows, additional low-carbon energy will be deployed to help safeguard long-term power supply for Finnish consumers and businesses.

The collaboration is also expected to advance new research and development and engineering career pathways, with Fortum and Google describing this as positioning Finland at the cutting edge of new energy technology and innovation.

Google's Expanding Footprint in Finland

Coinciding with the announcement of the energy partnership, Google revealed plans to invest USD 15.08 billion in Finland over the next two years, covering the 2027 to 2028 period. The investments include data center and other supporting infrastructure investments and partnerships at locations in Hamina, Muhos, Vaala, and Kajaani.

Google has operated in Finland for 15 years, with its first data center established in Hamina, a location close to the Loviisa nuclear power plant. Aris Karcanias, Director of Energy for Europe, the Middle East, and Africa at Google, said the proximity of the Loviisa plant to the Hamina data center made supporting its lifetime extension a deliberate part of the company's grid strategy.

"By supporting the lifetime extension of the Loviisa plant, which is located close to our data centre in Hamina, where we first put down our roots in Finland, we're doing our part to keep a critical energy source on the grid, mitigating system impacts from meaningful capacity going offline in the south of the country," Karcanias said.

He added that through its work with Fortum and other partners to bring new renewable capacity and flexible solutions to the Finnish grid alongside its growth, Google hopes to develop what he called a blueprint for responsible integration of artificial intelligence into European energy systems.

Implications for Finland's Energy Landscape

The partnership comes at a moment when Finland, like other European countries, is navigating the intersection of rising data center energy demand driven by artificial intelligence and the need to maintain a stable, decarbonized electricity system.

Fortum and Google have framed the deal as a model for how large technology companies can anchor their energy consumption in long-term agreements that support grid stability rather than strain it.

Fortum's Rauramo pointed to Finland's existing infrastructure as a competitive advantage, describing the country's decarbonized and reliable electricity system and its robust industrial base as a foundation for what he called the next wave of sustainable industrial growth.

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