The European Investment Bank (EIB) is investing up to €40m ($46m) in the Finnish nuclear technology startup Steady Energy. This is the first time that the EIB has invested directly in small modular reactor (SMR) technology. Historically, the bank has avoided new nuclear projects due to political differences among European Union (EU) member states.
Steady Energy’s planned 50 MWt reactor (LDR-50) does not generate electricity, but only heat that will be fed directly into existing district heating networks to replace fossil fuels. To ensure maximum safety, the system is designed to be built underground.
“Over 40% of final energy demand is heat. Most of the heat we consume comes from fossil fuels. With Steady Energy’s solution, we can wean ourselves further away from imported fuels,” said Steady Energy CEO Tommi Nyman. “We are extremely pleased that the EIB has decided to support Steady Energy as we proceed towards our first concrete projects in the next few years.”
The EIB investment, secured by the EU’s InvestEU programme, is structured as a senior unsecured convertible loan, which gives the EIB the opportunity to later convert the loan into listed shares.
Steady Energy has simultaneously announced a planned merger with Finnish company 3North Partners to list the combined company on the Nasdaq First North Growth Market Finland. The EIB funds are expected to be allocated between 2026 and 2028 to advance research, testing and licensing. The goal of the European Commission is to put the first SMRs into operation in Europe by the early 2030s.
“The support to Steady Energy is a flagship example of how the EIB Group is backing innovation to strengthen Europe’s competitiveness, enhancing energy autonomy and expanding access to affordable clean energy,” said EIB Group Vice-President Karl Nehammer. “We are actively looking to support Europe’s most promising SMR pioneers. By providing stable, low-carbon energy alongside renewables, SMRs can help build a more secure and resilient European energy mix, reducing reliance on fossil fuels and exposure to volatile energy prices.”
Steady Energy was spun out from the VTT Technical Research Centre of Finland in 2023. It provides engineering services to develop the LDR-50 district heating small modular reactor (SMR). The reactor has been under development at VTT since 2020. Steady Energy building a non-nuclear pilot facility in Helsinki to test key safety systems and support the licensing process with the national regulator.
