(Oil Price)– Sweden’s power giant Vattenfall announced on Tuesday it is applying for state aid for an investment in small modular reactors (SMRs) as part of a plan by industrial giants to bet on new nuclear power in the country.
Last month Sweden’s biggest industrial firms signed an agreement with Vattenfall to become shareholders in the power giant’s new company, Videberg Kraft AB, which plans to build SMRs in the country.
One of Europe’s top electric utilities, Vattenfall, created Videberg Kraft AB in April this year as a separate entity to be able to apply for government support.
Now the company and the industry organization, Industrikraft, plan joint investment and collaboration enabling the development of new nuclear power in Sweden.
Industrikraft, whose members include Volvo Group, Saab, Alfa Laval, and Hitachi Energy, will become a shareholder in Videberg Kraft with a 20-percent stake.
The government has previously announced that the state also intends to become a shareholder in the new company.
The Swedish government moved to phase out nuclear power completely in 1980, but that decision was reversed by Parliament in 2010. Five years later, four aging reactors were shut down. Six of 12 reactors remain in operation in Sweden today.
The country is now betting on SMRs to expand its nuclear fleet as Stockholm seeks to further reduce emissions with low-carbon 24/7 energy.
Sweden has tweaked its renewable energy policy, which had called for 100% renewable electricity by 2040, changing the terminology to “100% fossil-free” electricity, paving the way for the construction of more nuclear power plants.
Now Videberg Kraft’s CEO Desirée Comstedt has submitted an application for financing and risk-sharing to the Swedish Government.
When an agreement between the state and Videberg Kraft has been reached, the government may initiate a formal state aid process with the European Commission, Vattenfall said.
Videberg Kraft is planning a project with either five BWRX-300 reactors from GE Vernova Hitachi or three reactors from Rolls-Royce SMR, which will provide a total nuclear power output of about 1,500 MW. There is currently an intensive evaluation process of the two remaining suppliers, and a decision on the final supplier is planned for 2026.
By Michael Kern for Oilprice.com
