STOCKHOLM (Reuters) -A group of large Swedish industrial companies has signed a deal with utility Vattenfall to invest 400 million Swedish crowns ($42.5 million) into the development of small modular nuclear reactors in Sweden.
Industrikraft, a group of 17 industrial companies, including SKF, Volvo AB and Volvocars, is making the investment into Videberg Kraft, a company set up to facilitate the building of new nuclear power in Sweden. At a later stage Industrikraft will also take a 20% stake in Videberg Kraft, it said in a joint statement on Monday.
Vattenfall is planning to build small modular reactors at Vattenfall’s existing Ringhals plant in Varo, southwest Sweden, to provide a total output of around 1,500 MW.
“The commitment of these companies and their willingness to share ownership of the project on the Varo Peninsula is a sign that there will be demand for the newly produced fossil-free electricity,” Vattenfall CEO Anna Borg said in the statement.
In total, Sweden is planning up to 12 new nuclear reactors by 2045, which could cost around 400 billion Swedish crowns ($39 billion), a commission has found, with the government offering to share some of the investment risks.
($1 = 9.4155 Swedish crowns)
(Reporting by Johan Ahlander; Editing by Conor Humphries)
