Nordic energy company Fortum said on Thursday that it has submitted a state aid application to begin talks with the Swedish government on the terms and conditions for advancing a new nuclear power project in Sweden, as the country pushes ahead with a nuclear power revival. Fortum is majority-owned by the Finnish state and already operates the two-unit Loviisa nuclear power plant in Finland, giving it long-standing experience as a nuclear operator in the Nordics.

NuCore Energi, Fortum's project company established to develop new nuclear power in Sweden, has applied for state aid to support construction of a new nuclear power plant in the municipality of Oskarshamn, a coastal city in southern Sweden. Oskarshamn is no stranger to nuclear power: its existing plant hosts Oskarshamn 3, one of the world's largest boiling water reactors, which remains in operation.

Fortum said the project's final scope, currently estimated at between 1,200 MW and 3,400 MW of electricity, will depend on several factors, including technology selection, the benefits of building multiple reactor units, expected growth in electricity demand in Sweden — where authorities forecast consumption rising steeply toward 2045 as industry and transport electrify — and risk-sharing between the project and the state. Those factors, the company said, will determine whether the project is viable and financeable for the owners.

Sweden plans to build two new nuclear reactors by 2035 as part of a strategy to secure low-carbon energy supplies, with hopes of adding 10 new reactors by 2045. The government intends to support new nuclear power projects through state loans, contracts for difference (CfD) — a model that guarantees generators a fixed 'strike price' for their output and is already used to support new nuclear in the United Kingdom — and a risk-sharing mechanism worth billions of U.S. dollars. As in other EU member states, any Swedish support package would also need to be approved by the European Commission under the bloc's state aid rules.

In recent years, Sweden has also revised its renewable energy policy. The earlier goal of 100% renewable electricity by 2040 was changed to 100% fossil-free electricity, opening the door to additional nuclear power construction.

The Swedish government moved to phase out nuclear power completely in 1980, but Parliament reversed that decision in 2010. Five years later, four aging reactors were shut down. Six of Sweden's 12 reactors remain in operation today.

Fortum said progress on the Oskarshamn project also depends on customer offtake commitments for new power and continued long-term political support for nuclear power in Sweden.

Another key condition is that NuCore Energi secures access to and control of the Ävrö site in the municipality of Oskarshamn. The site is currently owned by Oskarshamn Kraftgrupp AB, in which Fortum holds a significant ownership stake. The Ävrö site lies near the existing Oskarshamn nuclear plant.

Separately, Sweden is also advancing small modular reactor (SMR) technology. Earlier this year, Sweden's Videberg Kraft selected the UK's Rolls-Royce SMR to deliver three SMRs on Sweden's west coast, which would be Sweden's first new nuclear power project in more than 40 years. Rolls-Royce SMR's factory-built design is rated at roughly 470 MW per unit, a fraction of the capacity contemplated for Oskarshamn.