NuCore Energi, a project company owned by Fortum that focuses on developing new nuclear power, has submitted a state aid application to begin discussions with the Swedish government regarding the framework and conditions for advancing a new nuclear power project located in the municipality of Oskarshamn, Sweden.
In March 2025, Fortum published the conclusions of its feasibility study on new nuclear power. The extensive study examined the commercial, technological, and societal prerequisites for new nuclear power projects in Finland and Sweden. Following the study, Fortum has continued project development and built its capabilities to ensure that new nuclear power can be part of the solution to the growing electricity demand of customers in the Nordic countries.
As part of the project development, Fortum has established a separate company, NuCore Energi, to develop, own, construct, and operate a new nuclear power plant and related infrastructure in Sweden. Exploring the advancement of new nuclear power in the Nordics is in line with Fortum’s strategy to reliably produce and supply energy while promoting industrial decarbonization and growth in the region. Fortum and NuCore Energi have not made any investment decisions regarding the new nuclear power project.
The application sets the framework for discussions between NuCore Energi and the Swedish government on the conditions for new nuclear power
The Swedish state aid framework is designed to support new nuclear power through government loans, a two-way Contract for Difference (CfD), and a risk-sharing mechanism. The detailed terms of the state aid are always agreed upon between the project company and the Swedish government, and any potential support would require approval from the European Commission in accordance with EU state aid rules.
The electrical capacity of the project currently being developed by NuCore Energi ranges between 1,200 and 3,400 megawatts. The final scale of the project depends on several factors, such as technology selection, the benefits of building multiple reactor units, expected growth in electricity demand in Sweden, and risk sharing between the project and the state. For the project to proceed, it must be viable for its owners in terms of implementation and financing.
Over time, more investors are expected to join the project, including private investors and potentially the Swedish state. Fortum’s goal is to gradually reduce its ownership and remain a minority shareholder in NuCore Energi.
The continuation of the project from this stage forward depends on the key terms and principles described in the state aid application. These include, for example, the commitment of industrial customers to purchase electricity produced by new nuclear power, as well as long-term political support for nuclear power in Sweden. A significant condition is also that NuCore Energi gains access to and control over the Ävrö land area in the Oskarshamn municipality. The area is currently owned by Oskarshamn Kraftgrupp AB (“OKG”), in which Fortum holds a significant ownership stake.
Fortum’s nuclear expertise and the new nuclear power study form the foundation for NuCore Energi
Fortum is a strong Nordic nuclear power operator with over 45 years of experience in reliable nuclear power production. Fortum owns and operates two nuclear reactors in Loviisa and is a co-owner in a total of seven nuclear reactors in Finland and Sweden, including the Forsmark and Oskarshamn nuclear power plants. Fortum has been closely involved in recent nuclear power projects, particularly in the construction of the OL3 reactor at Olkiluoto in Finland. Fortum’s nuclear expertise covers the entire lifecycle of nuclear power plants, from new construction to decommissioning and final disposal of nuclear waste.
Fortum’s two-year feasibility study on new nuclear power examined both small modular reactors (SMRs) and traditional large-scale reactors. In conjunction with the study’s conclusions, Fortum announced that it would deepen its cooperation with two large-scale reactor technology suppliers, EDF and Westinghouse-Hyundai, as well as one SMR developer, GE Vernova Hitachi.
Fortum and the selected companies formalized their cooperation by signing Early Works Agreements (EWA) in June 2025. The agreements cover early-stage project planning, site and plant adaptation, and targeted actions related to licensing and permitting, including the continuation of pre-licensing dialogue with Nordic nuclear safety authorities.
Personally, I view this with mild positivity.