Fortum and Google have entered into a strategic partnership in Finland, including a multi-decade power purchase agreement (PPA) aimed at supporting the continued operation of Fortum’s Loviisa nuclear power plant through 2050.
The agreement is expected to provide Fortum with long-term revenue visibility to support investments required to extend the plant’s operating life. The Loviisa facility currently employs around 580 people and generates approximately 10% of Finland’s electricity.
Without the planned lifetime-extension investment programme, the plant would not be able to continue operating beyond 2030. The partnership is therefore expected to support the continued availability of fossil-free generation capacity and strengthen the resilience of Finland’s electricity system.
Google to Support Long-Term Nuclear Power Supply
Under the PPA, Google will purchase electricity from the Loviisa nuclear power plant during its lifetime-extension period. The agreement will begin in 2028 with a smaller contracted capacity and increase to 50% of the plant’s generation capacity from 2030 through 2049.
Fortum has an approximately €1 billion investment programme underway to extend Loviisa’s operating life to 2050. Around €700 million of the required capital expenditure and approximately 80% of the projects associated with keeping the plant operational through 2050 remain subject to investment decisions.
Fortum said the PPA with Google will provide the revenue certainty required to proceed with investments covering the full lifetime extension of Loviisa.
The agreement is also expected to enable an additional 10 MW increase in the plant’s output, alongside a previously planned 38 MW capacity increase expected to become operational in 2028.
Partnership to Explore New Nuclear and Renewable Capacity
Beyond the PPA, Fortum and Google have signed a memorandum of understanding (MoU) to explore additional low-carbon electricity generation and flexibility solutions in Finland.
The companies will assess opportunities across new nuclear generation, renewable energy and flexible capacity, including battery storage and pumped hydro. The collaboration is intended to align additional low-carbon power deployment with the growth in electricity demand associated with Google’s operations and artificial intelligence services.
As an initial step, Fortum has agreed to optimise a 94 MW battery energy storage system contracted by Google. The battery will be located next to Google’s new data centre in Kajaani.
Fortum currently has an 8 GW renewable-energy pipeline in the Nordic countries at the permitting stage. The company is targeting 1.2 GW of ready-to-build renewable capacity and 2.5 GW of new flexibility services and generation assets in a ready-to-deploy state by the end of 2028.
Google Announces €13 Billion Finland Investment
The partnership comes as Google announced plans to invest €13 billion in Finland over 2027–2028, covering data centres, supporting infrastructure and partnerships in Hamina, Muhos, Vaala and Kajaani.
Google said its growing operations in Finland require significant long-term energy investments and that collaboration with local energy companies will help support the country’s decarbonised and resilient electricity system.
The companies also plan to explore potential business models to improve the competitiveness of new nuclear reactors at Loviisa. Fortum will additionally assess the suitability of its powered land sites for Google’s future data-centre requirements.
PPA to Strengthen Fortum’s Financial Outlook
The long-term PPA is expected to improve Fortum’s Group comparable return on net assets (RONA) by approximately 1.4 percentage points over time once 50% of Loviisa’s generation capacity is contracted.
The agreement supports Fortum’s long-term comparable RONA target of 14%, compared with 11.0% for the last twelve months at the end of Q2 2026.
Fortum said the PPA will be included in its long-term hedge ratio and is economically different from conventional financial hedging, as it reflects long-term customer value rather than short-term electricity-market pricing.
Focus on AI, Energy Security and Innovation
The partnership is also expected to create new research, development and engineering career opportunities in Finland, with the companies aiming to strengthen the country’s position in energy technology and innovation.
Fortum and Google will further explore the use of Google Cloud, artificial intelligence and data services to support Fortum’s operations.
The companies said the broader collaboration could provide a model for integrating growing AI-related electricity demand with new low-carbon generation, storage and flexibility resources while maintaining reliable and affordable power supplies for consumers and businesses.
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