Fortum Seeks Sweden State Aid for Oskarshamn Nuclear Project
(Bloomberg) -- Fortum Oyj has submitted an application for Swedish state aid to build new nuclear reactors in Oskarshamn, as power demand is set to surge in the coming decades.
The application was submitted Thursday through Nucore Energi, wholly owned by Fortum and established for the project. The reactors would be built adjacent to the existing nuclear plant in southeastern Sweden, which is operated by Uniper SE and in which Fortum is a significant minority owner.
Sweden’s nuclear new-build push sits at the heart of the government’s energy agenda. It has designed a comprehensive support package that includes a minimum electricity price, state-backed construction loans and a mechanism for sharing project risks.
Fortum is planning a facility with capacity ranging from 1.2 gigawatts to 3.4 gigawatts, Nucore Energi Chief Executive Officer Laurent Leveugle said in an interview. The eventual size will depend on the technology, expected demand growth and the terms of any risk-sharing arrangement with the state, he said.
“In order to justify such a project, we really need to eventually agree with customers on offtaking the electricity and to make sure that it will be used,” he said.
The technology will be selected from three potential candidates, two large-scale reactors and one small modular reactor, from suppliers including Westinghouse Electric Co., Electricite de France SA and GE Vernova Hitachi Nuclear Energy.
The new capacity may come online in the second half of the 2030s at the earliest, Leveugle said, adding that “some discussions” have been held with Uniper regarding the site. The German company has said that it has no plans to invest in new nuclear in Sweden.
Johan Svenningsson, Uniper’s Sweden head, reiterated that point and said by email that the company is looking forward to continuing the dialogue with Fortum about the potential project.
The site houses Sweden’s biggest reactor, the 1,400-megawatt Oskarshamn-3, as well as two older units that were decommissioned in 2015 and 2017.
Fortum has been assessing options for new nuclear power in Sweden since 2022. The application doesn’t constitute an investment decision, but formally starts discussions with the Swedish state over potential support for the project.
If the plan goes ahead, Fortum would eventually look to be a minority holder.
“Even though we are a major utility in the Nordics, these projects are just too big for us to take alone, even at 51%,” said Leveugle.
Other firms including Videberg Kraft AB, Blykalla AB and Studsvik AB have also applied for state aid for new nuclear.
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