Sweden's Oskarshamn New Nuclear Project Applies for State Aid

NuCore Energi AB, a project company under Fortum, has submitted a state aid application to the Swedish government to initiate consultations on the framework and conditions for a new nuclear power project in Oskarshamn municipality. The project is planned to proceed near the existing Oskarshamn Nuclear Power Plant, with options covering small modular reactors (SMRs) and large reactors, with a total installed capacity expected to range between 1,200 MW and 3,400 MW.

NuCore Energi submitted the state aid application on August 27, 2026. In the photo, from left to right: NuCore Energi CEO Laurent Leveugle and Minister Niklas Wykman.

Fortum emphasized that neither the company nor NuCore Energi has yet made an investment decision regarding this new nuclear power project. The final scale of the project will depend on the technology route, the combined benefits of constructing multiple units, expectations for Swedish electricity demand growth, and the risk-sharing arrangements between the project company and the government.

Under Sweden's current state aid framework, new nuclear power projects can receive support through state loans, two-way contracts for difference, and risk-sharing mechanisms. The specific terms need to be negotiated between the project company and the Swedish government and must comply with EU state aid rules, requiring approval from the European Commission. The Swedish Ministry of Finance stated that upon receipt of the application, the relevant parties can begin work on the scope and conditions of the aid.

Since October 2022, Fortum has been conducting feasibility studies for new nuclear power, evaluating the commercial, technical, and social conditions of new nuclear projects in Finland and Sweden. During the studies, the company has engaged with multiple technology suppliers, potential partners, customers, and stakeholders, and has compared large reactor and small modular reactor options.

In 2025, Fortum decided to continue deepening cooperation on the EPR solution with EDF, the AP1000 solution with Westinghouse-Hyundai, and the BWRX-300 small modular reactor solution with GE Vernova Hitachi Nuclear Energy. In June of the same year, Fortum signed early work agreements with the relevant companies, covering preliminary project planning, site and design adaptation, licensing preparation, and pre-licensing communication with Nordic nuclear safety regulators.

As part of project advancement, Fortum established NuCore Energi to develop, own, construct, and operate new nuclear power plants and supporting infrastructure in Sweden. Fortum stated that more co-investors are expected to join the project in the future, including private investors and potentially the Swedish government. Fortum plans to gradually reduce its shareholding and ultimately become a minority shareholder in NuCore Energi.

Several key conditions still need to be met for the project to continue, including purchase commitments from industrial users for additional electricity, sustained long-term support for nuclear power from the Swedish government, and NuCore Energi obtaining the right to use and control the Ävrö site in Oskarshamn municipality. The site is currently held by Oskarshamn Kraftgrupp AB (OKG), in which Fortum is a significant shareholder.

NuCore Energi CEO Laurent ·Leveugle stated that Sweden's nuclear power policy and risk-sharing model provide a foundation for new nuclear power projects. New nuclear projects help strengthen Nordic energy security, improve the long-term stability of the power system, and support the growth of industrial electricity demand.

Sweden implemented a new state aid act on August 1, 2025, allowing companies intending to build new nuclear power projects to submit aid applications. Sweden has previously proposed adding nuclear capacity equivalent to at least two large reactors by 2035 and up to ten large reactors by 2045, which may include small modular reactors. In addition to the Oskarshamn project, the Swedish government has received applications for new nuclear projects in Ringhals, Norsund, Ångtra, Valdemarsvik, Nyköping, and Barsebäck.