Fortum's NuCore Energi applies for Swedish state support for new nuclear

Fortum launched the feasibility study in October 2022 to explore the commercial, technological, and societal prerequisites for new nuclear in Finland and Sweden. The study involved in-depth discussions with several technology vendors, potential partners and customers as well as societal stakeholders. During the feasibility study, Fortum evaluated different large and small modular reactor (SMR) designs together with vendors.

The company announced in March 2025 that it would continue to deepen the collaboration with two conventional reactor technology providers - EDF (EPR) and Westinghouse-Hyundai (AP1000) - and one SMR developer - GE-Hitachi (BWRX-300). Fortum and the selected companies formalised their cooperation by signing Early Works Agreements in June 2025. The agreements cover early phase project planning, adaptation of the plant site and plan, and targeted activities related to licensing and permitting, including continued pre-licensing dialogue with the Nordic nuclear safety authorities.

"Since the study, Fortum has continued project development and improved its capabilities so that new nuclear power could be part of the solution to customers' growing electricity demand in the Nordic countries," the company said.

As part of the project development, Fortum - which owns and operates two reactors at the Loviisa plant in Finland and is a co-owner of a total of seven reactors in Finland and Sweden - established the separate company, NuCore Energi, to develop, own, build and operate a new nuclear power plant and related infrastructure in Sweden.

NuCore Energi has now submitted a state aid application to begin discussions with the Swedish government on the framework and conditions for promoting a new nuclear power project to be located in the municipality of Oskarshamn. The application states that the project includes various options with both SMRs and large-scale reactors. The electrical output in the different options varies between 1,200 and 3,400 MW. "Fortum and NuCore Energi have not made any investment decisions regarding the new nuclear power project," Fortum stressed.

"The final scale of the project will depend on several factors, including the choice of technology, the benefits of building more reactor units, the expected growth in electricity demand in Sweden, and the risk sharing between the project and the state," Fortum said. "In order for the project to proceed, it must be feasible and financially viable for its owners. Over time, more investors are expected to join the project, including private investors and possibly the Swedish state. Fortum aims to gradually reduce its ownership and remain a minority shareholder in NuCore Energi.

"The continuation of the project beyond this stage depends on key conditions and principles described in the state support application. These include, for example, a commitment from industrial customers to purchase electricity from new nuclear power, as well as long-term political support for nuclear power in Sweden. Another important condition is that NuCore Energi will gain access to and control over the Ävrö land area in the municipality of Oskarshamn. The area is currently owned by Oskarshamn Kraftgrupp AB, in which Fortum has a significant stake."

"The Swedish government's nuclear power policy and the introduction of a comprehensive risk-sharing model provide a solid foundation for enabling new nuclear power in Sweden," said Laurent Leveugle, CEO of NuCore Energi. "New nuclear power would strengthen energy security and improve the long-term stability of the electricity system in the Nordic countries. It would also support industrial growth and bring wider benefits to the Swedish economy."

Minister of Financial Markets Niklas Wykman said: "Fortum is an established nuclear power player in both Finland and Sweden. The fact that they are setting up a project company in Sweden for the construction of new nuclear power shows that the Swedish support model is well balanced and serves its purpose."

The Ministry of Finance said that receiving an application means work can begin on making a decision on providing state support. This includes negotiations between the government and the company on the terms and scope of the support as well as ongoing dialogue with the European Commission to ensure that any support is compatible with the European Union's state aid rules.

Background

In October 2022, Sweden's incoming centre-right coalition government adopted a positive stance towards nuclear energy. In November 2023, it unveiled a roadmap which envisages the construction of new nuclear generating capacity equivalent to at least two large-scale reactors by 2035, with the equivalent capacity of up to 10 new large-scale reactors (which may include SMRs) coming online by 2045. A new act on state aid entered into force on 1 August 2025, since when interested companies have been able to apply for the aid.

The Swedish state aid framework is designed to support new nuclear power through a state loan, a two-way contract for difference and a risk-sharing mechanism. The detailed terms of the state aid are agreed between the project company and the Swedish state, and any support would require approval by the European Commission in accordance with EU State aid rules.

The Swedish government received the first such application in December 2025 to support proposals to provide about 1,500 MWe capacity at Ringhals on the Värö Peninsula. The application came from Videberg Kraft AB, a project company owned by Vattenfall AB and backed by a series of industrial firms via the Industrikraft i Sverige AB consortium.

In early June this year, Blykalla submitted an application for government financing for its planned power plant in Norrsundet, Gävle, in east central Sweden, comprising six SEALER reactors, which will have a total generating capacity of up to 330 MWe. Earlier this week it submitted a second application, for a nuclear power plant at Untra in the Tierp municipality, which would feature up to eight of its lead-cooled SEALER reactors with a total capacity of up to 440 MWe.

Also in June, Studsvik submitted an application for state support for up to 1,400 MWe of new nuclear power, featuring SMRs, in the southern part of the country, with options at Valdemarsvik and Nyköping forming the basis of the application.

Another application was received in mid-June from Nordic Baseload Power for the construction of two large-scale reactors at the Barsebäck site, where two reactors are being decommissioned. The application states that the project involves two large-scale reactors with a combined capacity of about 2,500 MWe.