Fortum Wins Big Deal With Google, Boosts Earnings Prospects

Fortum OYJ, a Finnish utility company, has signed a 22-year power purchase agreement (PPA) with Google for a data center supplied by its Loviisa nuclear plant.

The deal covers 50% of the capacity of Fortum's Loviisa nuclear plant, or 500 megawatts, through 2050.

J.P. Morgan and Goldman Sachs have upgraded their ratings on Fortum to 'neutral' from 'underweight' and 'sell', respectively, following the announcement.

The banks estimated that the agreement was signed at around €80 to €90 per megawatt-hour, compared with Nordic forwards in the 50s.