en.Wedoany.com Reported - The Swedish government has decided to hold a 60% stake in Videberg Kraft AB, supporting the construction of three Rolls-Royce small modular reactors near Ringhals, and facilitating the project through loans, contracts for difference, and risk-sharing mechanisms.
In the spring 2026 revised budget bill, the government is seeking parliamentary authorization to acquire a 60% stake in Videberg Kraft for up to SEK 1.8 billion (approximately RMB 1.25 billion), and to establish a framework for future capital injections. The government requests authorization to adjust its shareholding to between 51% and 65% before the reactors are commissioned and operational, and also requests authorization to inject up to SEK 34.3 billion (approximately RMB 23.95 billion) into the company during the construction period, provided that other shareholders contribute proportionally. Subsequent capital injections are expected from 2030 onwards. Both authorizations remain valid until the reactors enter regular operation, no later than 2045.
Following parliamentary approval, the Swedish government now states that a shareholder agreement will be reached between the government, Vattenfall, and Industrikraft regarding the management of the company. The government has also negotiated the main terms of state support for the company.
Videberg Kraft is currently 80% owned by state-owned Vattenfall and 20% by Industrikraft, a consortium of some of Sweden's largest industrial companies. This government acquisition will be conducted through a purchase agreement, meaning Vattenfall's stake will be reduced to 20%. The shares are expected to be formally transferred to the Swedish government in the second half of 2027.
The main terms and conditions of state support and nuclear waste management negotiated between the government and Videberg Kraft in the spring have also been included as annexes to the acquisition agreement. This support includes state loans, price hedging in the form of so-called two-way contracts for difference, and a risk and profit-sharing model.
With the agreement on state ownership formally reached, the Swedish government will submit a state aid notification to the European Commission. The Commission is expected to decide on this state aid by the end of 2027.
Swedish Financial Markets Minister Niklas Wykman stated that building new nuclear power projects is costly and complex, but it is crucial for building a more efficient energy system. The Swedish government, Vattenfall, and the large industrial companies in Industrikraft have now reached an agreement, which demonstrates Sweden's strength. This agreement both paves the way for new nuclear projects and protects taxpayer money, ensuring order in public finances. We can now move forward and submit this agreement to the European Commission for review.
Desirée Comstedt, Acting CEO of Videberg Kraft, said that for Videberg Kraft, the government's announcement of becoming a major shareholder is very welcome news, providing us with all the conditions to advance new nuclear projects on the Värö Peninsula. We are currently in an intensive phase of progress, with many processes running in parallel. Agreements on risk-sharing and financing are now in place, which is crucial for the project's advancement.
Karl-Henrik Sundström, the new Chairman of the Board of Industrikraft, stated that today's announcement by the government is extremely positive news. New nuclear projects require very large investments and extremely long payback periods. Therefore, state ownership is crucial, as it provides both financial stability and a clear demonstration of long-term commitment.
In May 2025, the Swedish parliament approved the government's proposal to provide state aid to companies interested in investing in new nuclear projects in the country. These loans are intended to reduce the financing costs of new nuclear projects and will be limited to an amount equivalent to four large reactors (with a total installed capacity of approximately 5000 MWe). The government noted that the aid applies only to new reactors built on the same site with a total installed capacity of no less than 300 MWe. Two-way contracts for difference can be signed after the new reactors are commissioned and obtain a full-power generation permit. This new state aid legislation came into effect in August 2025, allowing eligible companies to apply for the aid from that date.
Videberg Kraft applied for state aid in December 2025 to support a proposal for approximately 1500 MWe of installed capacity at the Ringhals site on the Värö Peninsula, with options including five GE Hitachi Nuclear Energy BWRX-300 reactors or three Rolls-Royce SMRs. In early June 2026, after a three-year evaluation, Videberg Kraft selected Rolls-Royce SMR as its project supplier.
The Videberg project will be Sweden's first nuclear power plant in over forty years, ultimately adding approximately 1.5 GW of installed capacity to the grid. The project plans to commission the first unit in the mid-2030s.
