Fortum is investigating the construction of a new nuclear power project in Sweden

Fortum’s a project company focusing on the development of nuclear power NuCore Energy has filed a state aid application to start discussions with the Swedish government about the framework and conditions for promoting a new nuclear power project, the company says in a press release.

The nuclear power project would be located in the municipality of Oskarshamn in Sweden. According to Fortum, an important condition for the project’s progress is that NuCore Energi gets access to and control of the Ävrö land area in Oskarshamn. Nowadays the area is owned Oskarshamn Power Groupin which Fortum has a significant stake.

The project’s electrical output currently varies between 1,200 and 3,400 megawatts. For comparison, the electrical output of the three nuclear power plant units in Olkiluoto is a total of 3,380 megawatts.

A nuclear power plant is already operating in Oskarshamn, where Fortum is a part owner.

A lot is still open

The final scope of the project depends, among other things, on the choice of technology, the advantages of building more reactors, the growth in demand for electricity in Sweden, and the sharing of risk between the project and the state.

The progress of the project also depends on the key conditions and principles described in the state aid application. These include, for example, the commitment of industrial customers to purchase electricity produced with new nuclear power and long-term political support for nuclear power in Sweden, Fortum says.

Fortum says in the press release that Fortum and NuCore Energi have not made any investment decisions for the new nuclear power project.

Fortum shines a light on the Swedish state

“The Swedish government’s nuclear power policy and the introduction of a comprehensive risk sharing model provide a solid basis for enabling new nuclear power in Sweden. 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,” says NuCore Energi’s CEO. Laurent Leveugle In Fortum’s announcement.

Sweden’s state support framework can support new nuclear power with the help of a government loan, a two-way contract for difference (CfD) and a risk sharing mechanism, Fortum says. The detailed conditions of the state aid are always agreed between the project company and the Swedish government, and possible aid would need the approval of the European Commission in accordance with EU state aid rules.