VHO - Rolls-Royce SMR, the nuclear technology development unit of British engineering group Rolls-Royce, has won a contract to build three small modular reactors (SMRs) in Sweden. This is seen as an important step in the company's ambition to expand its presence in the European nuclear market.
After a selection process that began in 2022, Rolls-Royce SMR was chosen as the technology partner for the construction of a new nuclear power plant on the Värö Peninsula, on Sweden's west coast.
According to Rolls-Royce, the Videberg project will become the first new nuclear power plant built in Sweden in nearly 50 years. The project is expected to help secure electricity supply for industries and households in the south of the country.
The project involves power company Vattenfall and developer Kärnfull Next, and is considered one of the most advanced small modular reactor deployment plans outside the United Kingdom.
The British government welcomed the deal, calling it a major success for the UK nuclear industry. According to a government statement, the project will create thousands of skilled jobs, strengthen supply chains, and enhance cooperation between the UK and Sweden.
Although Rolls-Royce did not disclose the specific value of the contract, the UK government said it is an export deal worth billions of pounds and a significant breakthrough for the UK nuclear industry.
Following the announcement, Rolls-Royce shares rose about 1.8% in morning trading on June 16 European time.
The new deal further solidifies Rolls-Royce SMR's position in the European nuclear market, where the company is competing to become one of the leading SMR technology developers and suppliers.
Rolls-Royce CEO Tufan Erginbilgic said the selection has made Rolls-Royce SMR the only company currently holding multiple contracts to supply SMR units in Europe.
Earlier, in April this year, Rolls-Royce SMR signed an agreement with Czech Republic's CEZ Group to advance plans to build the country's first small modular reactor. The company also reached an agreement with Great British Energy – Nuclear (GBE-N) to design and supply the first SMR reactors in the UK.
Small modular reactors are seen as a new generation of nuclear technology, smaller in scale than traditional nuclear power plants, with shorter construction times and lower investment costs.
Many European countries now view SMRs as an important solution to meet electricity demand during the transition to low-emission energy sources.
