Norwegian towns take stakes in nuclear project company

In July 2024, Farsund and Lyngdal - both located in Agder county, on the southern tip of Norway - entered into cooperation agreements with Norsk Kjernekraft regarding the investigation of a possible future nuclear power plant in the area.

The co-ownership in the project company was approved by a large and cross-political majority in both municipal councils. Through their ownership, Lyngdal and Farsund secure founder rights in the form of future income and influence over the development of the company.

Norsk Kjernekraft - which aims to build, own and operate small modular reactor (SMR) power plants in Norway in collaboration with power-intensive industry - has submitted a planning initiative for the investigation of nuclear power plants in the Lister region to Norway's Ministry of Energy. This formally initiated the process of investigating possible future nuclear power production in Lister, in accordance with Norwegian law. The nuclear power plant to be investigated will consist of several SMRs, which, when fully developed, could deliver up to 12.5 TWh of "stable and weather-independent climate- and nature-friendly power and heat to the region", Norsk Kjernekraft said. This corresponds to about 8% of Norway's current electricity production.

"This is very good news," said Norsk Kjernekraft CEO Jonny Hesthammer. "The study and eventual establishment of a nuclear power plant in Lister will have major societal ripple effects for Farsund, Lyngdal and the region. This is a long-term project where it is crucial to play as a team with the municipalities and constantly ensure that the project is firmly rooted among residents and elected officials. Through municipal co-ownership, a more professional and seamless collaboration is facilitated, while at the same time ensuring the municipalities' long-term influence over the company's further development and founder rights."

Lister Kjernekraft AS must now wait for a decision from the government before impact assessments can begin. So far, the authorities have only processed the first assessment programme that Norsk Kjernekraft submitted in November 2023. It is for Trondheimsleia Kjernekraft AS, which is owned by Norsk Kjernekraft, the municipalities of Aure and Heim, and the energy company NEAS. The status is that the Norwegian Environment Agency recently sent the assessment programme for international consultation, with a deadline of 6 January 2026 for input. This is the formal last step before the authorities can determine the programme, so that Trondheimsleia Kjernekraft AS can start the assessments.

However, the Ministry of Energy has announced that the processing of the assessment programmes for Lister Kjernekraft and the other submitted planning initiatives will be put on hold until after the government-appointed Nuclear Power Committee delivers its public assessment on nuclear power on 1 April next year. Norsk Kjernekraft's has previously said the impact assessment of nuclear power locally should not be postponed pending a national process.