Industrikraft to take share in Ringhals new build project company

Industrikraft was formed in June 2024 to support the expansion of the Swedish electricity supply. Industrikraft 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 signed between Vattenfall and Industrikraft allows the parties to progress in enabling new nuclear power on the Värö Peninsula at Ringhals. The agreement covers various areas, including responsibilities, influence, and financing.

The next step in the collaboration is for Industrikraft to become a 20% shareholder in Videberg Kraft AB, a project company established by Vattenfall in April this year to enable an application for government support. A separate project company is a prerequisite for applying for government support. Videberg Kraft AB will own the development project and Vattenfall will continue to drive the development work. The government has previously announced that the state also intends to become a partner in the company.

Initially, Industrikraft will invest SEK400 million (USD42.2 million) in the project. In addition to co-financing the project company, the industry will contribute with resources, expertise in project management and selection of technologies.

"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."

In May this year, Sweden's parliament - the Riksdag - approved the government's proposals for providing state aid to companies that want to invest in new nuclear reactors in the country. The loans - aimed at lowering the cost of financing new nuclear - will be limited to the equivalent of four large-scale reactors (about 5000 MWe of capacity). The government noted that support may only be granted if the new reactors are located at the same location and have a total installed output of at least 300 MWe. Two-way Contracts for Difference may be entered into once a new reactor has become operational and has been licensed to produce electricity at full capacity. The new act on state aid entered into force on 1 August, since when interested companies have been able to apply for the aid.

In August, Vattenfall said it had decided to choose small modular reactors for new nuclear capacity at the existing Ringhals plant site, with a shortlist of two technologies: GE Vernova Hitachi's BWRX-300 and the Rolls-Royce SMR. At the time it said an application to the government for state risk-sharing was to be submitted and a final supplier selected.