Norwegian nuclear plans: Small modular reactors on the horizon

The Norwegian government has announced that it has tasked several agencies with drawing up a plan to assess the environmental impact of a proposed nuclear project. A power plant equipped with several small modular reactors (SMRs) is planned for Taftøy industrial park, with annual output expected to reach approximately 12.5 TWh of electricity. According to S&P Platts, the agencies are expected to submit their recommendations by September at the latest, ideally during the summer.

The Norwegian government's decision to continue planning a nuclear power plant marks a major shift in the country's long-standing energy policy. Until now, all governments, regardless of political orientation, have ruled out the use of commercial nuclear power. Following the Three Mile Island reactor accident in 1979, the Norwegian parliament decided to focus exclusively on hydropower. Today, Norway generates almost all its electricity from renewable energy sources, primarily hydropower and wind.

Although no commercial nuclear power plant has ever operated in Norway, the country ran two research reactors—Halden and Jeep II at Kjeller—used to test fuel and materials and produce radioisotopes for medical purposes. Both were permanently shut down in 2018 and 2019, ending Norway's active participation in nuclear research. Current plans to build a small modular reactor (SMR) plant therefore represent a return to nuclear energy in an entirely new form.

In a statement on 8 April, the government said it had tasked three key agencies—the Norwegian Radiation and Nuclear Safety Authority, the Norwegian Water Resources and Energy Directorate, and the Directorate for Civil Protection—with drawing up an environmental impact assessment (EIA) plan. The plan will inform licensing decisions under several Norwegian laws.

The plan is due to be completed by September, with work ideally finished during the summer. The decision comes shortly after the annual convention of the governing Labour Party, which included support for exploring the potential for commercial nuclear power in the country in its new platform.

SMR project takes shape

Norsk Kjernekraft announced plans to build a small modular nuclear power plant (SMR) with capacity of up to 1,500 MW at Taftøy industrial park, on the border between the municipalities of Aure and Heim in southwestern Norway. The company says the facility could generate up to 12.5 TWh of electricity annually, equivalent to the output of one large conventional power plant. The project aims to make a significant contribution to Norway's transition to a zero-emission, reliable energy mix.

"We are proud to have contributed to this historic milestone. This is the first time Norway has taken concrete steps towards introducing nuclear power, an initiative that can provide clean and sustainable energy for future generations. We see this as a critical step towards strengthening Norway's energy security, maintaining industrial productivity and reducing greenhouse gas emissions. This project will not only support our jobs and sustainable economic growth," Norsk Kjernekraft CEO Johnny Hesthammer said in a statement on 8 April.

The company plans to develop and operate SMR plants in cooperation with energy-intensive industries, in accordance with Norwegian legislation and international standards, including the recommendations of the International Atomic Energy Agency. In addition to the Aure and Heim site, Norsk Kjernekraft is considering other locations for reactor construction, including Vardø, Øygarden and Halden. The company is also actively seeking financial partners in industry and investment.

To support acceptance of nuclear energy in Norway, Norsk Kjernekraft signed an agreement with Rolls-Royce SMR in March 2023 on potential cooperation on future projects. In June 2024, the government also appointed a committee to assess all aspects of introducing nuclear power, with its final report expected by 1 April 2026. The SMR project in Aure and Heim is therefore part of a broader effort to identify a modern, clean and industrially viable energy solution for Norway's future.

Rolls-Royce has also selected the Czech Republic as a partner in developing modular reactors. Energy group ČEZ plans to build modular reactors with a combined capacity of three gigawatts by 2050. In October 2024, ČEZ signed a strategic cooperation agreement with Rolls-Royce SMR, and in March this year it also became a shareholder, acquiring an approximately 20% stake in the British company. This will make ČEZ a direct partner in the development and global production of a new generation of modular reactors.