Estonia starts planning process for SMR plant

Thursday, 22 May 2025

The company submitted its application to the country's Ministry of Economic Affairs and Communications to begin the state planning process for a plant based on GE Vernova Hitachi's BWRX-300 small modular reactor technology in January.

"The Estonian government's approval to begin planning for a 600MW nuclear power plant, following Fermi Energia's proposal using GE Hitachi's BWRX-300 small modular reactor technology, represents a significant step forward in Estonia's nuclear energy development," said Fermi Energia's CEO Kalev Kallemets.

"While planning and environmental impact assessments have historically been contentious issues in Estonia, Fermi Energia's extensive community outreach and the trust established with local municipalities - whose councils have already voted to support nuclear plant siting - provides reason for confidence that the planning process will proceed successfully," added Kallemets.

The planning area includes the rural municipalities of Viru-Nigula, Haljala, Rakvere and Vinni and the Rakvere city rural municipality in Lääne-Viru county; the Lüganuse and Toila rural municipalities and Kohtla-Järve city in Ida-Viru county; and the sea area from Kunda Bay to Narva Bay, covering some 1,285 square kilometres in total. This is significantly larger than the actual area where the nuclear power plant and the necessary facilities will be built, but ensures that the best location for the nuclear power plant can be thoroughly considered and assessed, the government said.

Minister of Economic Affairs and Industry Erkki Keldo said the preparation of the plan "does not mean that construction of a nuclear power plant will begin immediately" but is part of the necessary preparations "so that if an investor wishes to invest in the construction of a nuclear power plant and it is decided to build it, the state would already have a thoroughly considered and evaluated plan for this".

"If a decision is made to build a nuclear power plant, its construction will also create new high-paying jobs in the region, which in turn will support the consumption of local services and thereby the development of the local economic environment," Keldo added.

The planning process will involve the residents of the planning area, local governments, relevant authorities, and all other interested parties, the government said.

Several possible locations will be considered in the preliminary part of the spatial planning process, to identify the best location for the nuclear power plant and the infrastructure needed for its operation within the planning area. The designated spatial plan itself will only cover areas where the nuclear plant and its facilities are planned, and will provide "comprehensive and detailed spatial layout of the proposed nuclear power plant and its infrastructure in the best possible location, develop the necessary construction conditions, and resolve other issues related to the construction of a nuclear power plant", the government said. An overhead 330 kV power line, an extension of the existing 330 kV substation, and other electricity transmission facilities are expected to be planned alongside the nuclear power plant. Both Fermi Energia and the national nuclear energy working group have previously analysed the potentially suitable areas.

The first part of the phased planning process - site pre-selection - will take place between 2025 and 2027, focusing on promising areas near the village of Kunda in Viru-Nigula and the village of Aa in Lüganuse. Each location's strategic access to existing infrastructure, will be evaluated, alongside Environmental Impact Assessments, to identify the most viable and sustainable options for development. Fermi Energia said it will use the capital from an already-closed EUR2.3 million (USD2.6 million) funding round with participation from both existing and new investors to finance this phase, specifically the site pre-selection studies.

In 2027, the process will advance to detailed site confirmation, with in-depth studies - covering geology, hydrology, environmental monitoring, and grid connectivity - to ensure the selected site meets the stringent safety and performance standards required for deploying the BWRX-300 reactor.

Fermi Energia said the submission of the construction permit application is planned for 2029. According to Fermi Energia's application to the government, the first of the two planned BWRX-300 reactors could start operation in 2035 if all the processes go ahead smoothly.

Samsung C&T is being considered as a prospective engineering, procurement, and construction contractor for the project following the signature of a teaming agreement between Fermi Energia and the South Korean company in April.