Fortum seeks support in Sweden for new nuclear capacity of up to 3.4 GW

NuCore Energi, a project company within the Fortum group, has applied to the Swedish government for state support to prepare a new nuclear facility at the Oskarshamn power plant. The project remains technology-neutral for now and envisages options using small modular and large reactors with total electrical capacity of 1200 to 3400 MW.

The application concerns the Ävrö site in Oskarshamn municipality and initiates discussions with the government on the specific terms and scope of potential support. Neither Fortum nor NuCore Energi has yet made an investment decision, and further progress will depend, among other things, on the outcome of these discussions.

Technology has not yet been selected

The proposal envisages several options using both small and large reactors. Fortum had previously selected for closer cooperation as part of a feasibility study EDF with its EPR technology, Westinghouse and Hyundai E&C with the AP1000 reactor, and GE Vernova Hitachi with the BWRX-300 small modular reactor. In June 2025, Fortum concluded early-stage cooperation agreements with these companies, covering in particular project preparation, adapting designs to specific sites, and activities related to the licensing and permitting process. However, it has not yet selected a specific technology for the Oskarshamn project.

To prepare the Swedish project, Fortum established a separate company, NuCore Energi, which is to prepare, build, own and operate the potential new power plant and related infrastructure. NuCore Energi is currently wholly owned by Fortum, but additional investors are expected to join the project gradually. Fortum also envisages the possibility of the Swedish state joining and intends to gradually reduce its stake, remaining only a minority shareholder in the long term.

Further progress depends on offtakers and site access

According to Fortum, the project’s continuation will depend, among other things, on long-term political support for nuclear energy and commitments from industrial offtakers to purchase electricity from the new facility. The final size of the plant will also depend on the selected technology, expected growth in electricity demand, and how risks are shared between investors and the state.

Another important condition is securing access to and control over the land at the Ävrö site. The land is currently owned by Oskarshamns Kraftgrupp AB (OKG), which operates the Oskarshamn nuclear power plant. Fortum holds a 45.5% stake in OKG, while Uniper is the majority owner with a 54.5% stake.

Sweden shares part of the investment risks

Sweden’s support system for new nuclear facilities combines state loans, a two-way Contract for Difference (CfD), and a mechanism for sharing selected risks. The support framework is limited to investments in new nuclear facilities with total installed capacity of approximately 5 GW.

Acceptance of the application does not automatically create an entitlement to support: discussions between the investor and the government follow, and any support must subsequently be approved by the European Commission under EU state aid rules.

The Videberg Kraft project at the Ringhals nuclear power plant has made the most progress so far. In June, the Swedish government decided that the state would acquire a 60% stake in the project company, while Vattenfall and the Industrikraft industrial consortium are each to hold 20% once the transfer is completed. The main parameters of the project’s financial support were agreed at the same time.

NuCore submits fifth application for state support

NuCore Energi is already the fifth applicant for state support under Sweden’s new financial framework for nuclear construction. It was preceded by Videberg Kraft for a project at the Ringhals power plant, Blykalla for a plant in Norrsundet, Studsvik for projects at the Nyköping and Valdemarsvik sites, and Nordic Baseload Power for two large units at Barsebäck.

Blykalla has also submitted an application to approve another project at the Untra site in Tierp municipality, comprising eight lead-cooled SEALER reactors with total electrical capacity of approximately 440 MW. In this case, however, it is a permitting application rather than an application for state financial support.

The Swedish government aims to create conditions for bringing new nuclear capacity of at least 2.5 GW online by 2035. By 2045, it envisages substantially more extensive construction, which in terms of installed capacity could correspond to roughly ten large reactors. The specific share of large units and SMRs is to depend on developments in electricity demand, available technologies and the needs of the power system.