Blykalla Applies for State Funding to Build Advanced Nuclear Reactor Park in Sweden
Sweden's Push for Advanced Nuclear Energy
Blykalla's Application for State Funding
STOCKHOLM, June 5 (Reuters) - Swedish nuclear reactor developer Blykalla said on Friday it had applied for a share of billions of crowns promised by the government in cheap loans and price guarantees to build an advanced reactor park near the city of Gavle.
Competition for Government Financing
Blykalla is the second applicant to the financing scheme after state-owned utility Vattenfall, which plans to construct three to five small modular reactors (SMRs) at its Ringhals nuclear facility in southwest Sweden.
Negotiations and Funding Details
"We will now also start actual negotiations with the government," Blykalla CEO Jacob Stedman said.
He declined to say how much funding the company was seeking, but said projects of this kind typically run into the tens of billions of Swedish crowns.
Technology and Project Scope
Lead-Cooled Reactor Innovation
Blykalla is developing 55-megawatt reactors using an updated version of lead-cooling technology developed for Russian nuclear submarines in the 1950s.
Capacity and Timeline
Its planned reactor park would generate around 330 MW of electricity, enough to power 150,000 homes, and could start producing power in the first half of the 2030s.
Regulatory and Political Context
Approval Process
New reactors require approval from the government, the nuclear regulator, the environmental court and the European Union.
Government's Nuclear Revival Strategy
Sweden's right-of-centre government wants to revive nuclear power amid energy security concerns and forecasts that electricity demand will double by 2045.
Financial Incentives and Support
With private investors deterred by high costs and risks, the government has offered up to 440 billion crowns ($47 billion) in loans, 40-year price guarantees and support for nuclear waste management, aiming to spur the construction of at least 5,000 MW of new nuclear capacity.
It also plans to take a majority stake in Videberg Kraft - Vattenfall's nuclear development arm - and provide up to 34 billion crowns in funding.
Debate Over Nuclear vs. Renewables
Critics say renewables such as onshore wind would be cheaper and quicker to build, and question whether demand will rise as projected, noting that electricity consumption has been broadly flat since the 1990s due to efficiency gains.
Sweden's Energy Landscape
Current and Future Nuclear Capacity
Overall, the government is targeting capacity equivalent to around 10 new, full-size reactors by 2045 to complement the six currently in operation.
Fossil-Free Electricity Production
Sweden's electricity production is already 98% fossil free with hydro, nuclear and wind the main sources.
($1 = 9.3427 Swedish crowns)
(Reporting by Simon Johnson. Editing by Mark Potter)
