Finnish utility Fortum and Swedish nuclear technology company Studsvik are teaming up to explore the possibility of new nuclear power in Sweden. This collaboration is part of Fortum's ongoing feasibility study to identify business opportunities in the nuclear sector in both Finland and Sweden.
The focus of this feasibility study is to assess the potential for constructing small modular reactors or conventional large reactors at the Studsvik site near Nykoping in Sweden. In the initial phase of their cooperation, Fortum and Studsvik will work together to identify potential business models and technical solutions for further evaluation. Any investment decisions will be made at a later stage.
This announcement comes just after the Swedish government unveiled its plans to increase the country's nuclear power generation capacity. The aim is to have new nuclear power output equivalent to two large-scale reactors by 2035, with a long-term goal of ten new large-scale reactors by 2045, to meet the increasing demand for fossil-free electricity.
Currently, Sweden has three nuclear power plants with a total of six reactors in operation. The government had previously proposed introducing government credit guarantees of 400 billion Swedish kronor ($37.8 billion) to support nuclear power expansion. However, it is now clear that credit guarantees alone may not be sufficient, and a risk-sharing and financing model where the state shares the risk will need to be developed.
Finance Minister Elisabeth Svantesson emphasized the necessity of new nuclear power for a stable and reliable energy system, benefiting both consumers and businesses. The high cost of not investing in nuclear power in recent years has highlighted the importance of this expansion.