en.Wedoany.com Reported - Swedish advanced nuclear energy company Blykalla has submitted an application for state aid to build the Norrsundet Small Modular Reactor (SMR) plant under the country's new financing model. The plant is planned to have a total installed capacity of up to 330 MWe, with an expected annual generation of 2.76 TWh, accounting for approximately 13% of Sweden's target to add 2,500 MWe of new nuclear capacity by 2035. Subject to obtaining necessary permits and a final investment decision, the facility is expected to begin operation in the first half of the 2030s.
Blykalla's application is the first advanced nuclear application under Sweden's new financing model framework. The model, which took effect on August 1 last year, includes three instruments: government loans, Contracts for Difference (CfDs), and a risk and profit-sharing mechanism. Specific parameters such as interest rate levels, strike prices, and contract durations are subject to negotiation on a project-by-project basis and must be approved by the European Commission. Blykalla CEO Jacob Stedman stated that the application is a significant milestone in building the clean baseload power Sweden needs, and the new financing model is designed to support the company's plans to construct an advanced nuclear reactor park to meet Sweden's rapidly growing electricity demand driven by industrial electrification and increased reliance on digital infrastructure.
The next step in the financing process is to negotiate the parameters of the financing model with the Swedish government. Meanwhile, license applications under the Environmental Code and the Nuclear Technology Act are also progressing in parallel, with close cooperation with the municipality of Gävle. Financial Markets Minister Niklas Wykman stated that receiving another application for new nuclear construction indicates that the state-supported financing model is functioning well, and new nuclear power can provide Sweden with stable, fossil-free baseload electricity.
The application will be prepared by the Secretariat for New Nuclear Financing under the Ministry of Finance. The Ministry stated that the application means the government can proceed to make a support decision. The process includes negotiations between the government and the company on the terms and scope of support, followed by ongoing dialogue with the European Commission's Directorate-General for Competition, which will lead to a formal review of whether the support measures comply with EU state aid rules. Blykalla, formerly known as LeadCold, is a spin-off from the KTH Royal Institute of Technology, which has been researching lead-cooled reactor systems since 1996. Founded in 2013, the company is developing the SEALER (Swedish Advanced Lead-cooled Reactor). In November 2023, the Swedish government published a roadmap aiming to bring online new nuclear capacity equivalent to at least two large reactors by 2035, and capacity equivalent to up to ten large reactors by 2045.
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