Swedish state-owned power utility Vattenfall has signed an agreement with the Industrikraft i Sverige AB consortium for joint investment and collaboration to promote development of new nuclear generating capacity in Sweden.
Industrikraft was formed in June 2024 to support the expansion of the Swedish electricity supply. It is now entering the next phase of nuclear power investment with the following companies – ABB, Alfa Laval, Boliden, Hitachi Energy, Höganäs AB, SSAB, Saab, Stora Enso, and the Volvo Group.
The agreement allows the parties to progress in enabling new nuclear power on the Värö Peninsula at Ringhals. In May the Swedish parliament – the Riksdag – approved government proposals to provide state aid to companies seeking to invest in new nuclear reactors. The loans will be limited to the equivalent of four large-scale reactors (about 5000 MWe), provided the new reactors are sited at the same location as an existing NPP and have a total installed output of at least 300 MWe. The legislation on state aid entered into force on 1 August.
In August, Vattenfall said it had chosen small modular reactors (SMRs) for new nuclear capacity at the existing Ringhals NPP. It shortlisted of two technologies: GE Vernova Hitachi’s BWRX-300 and the Rolls-Royce SMR.
The Vattenfall-Industrikraft agreement covers various areas such as responsibilities, influence, and financing. The next step is for Industrikraft to become a 20% shareholder in Videberg Kraft AB, a project company set up by Vattenfall in April to enable an application for government support. The Swedish government announced previously that the state also intends to become a shareholder in the company.
“Industrikraft and Vattenfall have reached consensus on the most important issues”, said Tom Erixon, Chairman of Industrikraft and CEO of Alfa Laval. As a first step, Industrikraft will invest SEK400m ($42.2m) in the project. In addition to co-financing the project company, the industry will contribute resources, expertise in project management and technology selection.
“It is very positive news that Vattenfall and Industrikraft are now taking the next step to move the project forward together,” said Vattenfall CEO Anna Borg. “The industry is an important partner in enabling new nuclear power in Sweden. The commitment and willingness of these companies to co-own the project on the Värö Peninsula is a sign that there will be a demand for the new fossil-free electricity production capacity. In the next step, Videberg Kraft AB is working to prepare an application for state risk-sharing.”
