Nordic energy company Fortum has completed a two-year feasibility study on new nuclear power in Finland and Sweden, determining that it is not commercially viable on a merchant basis only under existing Nordic power market conditions.
The study found that new nuclear power can be feasible on a solid risk-sharing framework, depending upon increasing customer demand.
Go deeper with GlobalData
Fortum aims to evaluate new nuclear power as a long-term solution, and prioritise the expansion of renewable energy sources and extending the lifespan of its existing nuclear plants to meet demand.
New nuclear capacity could be introduced in the Nordic countries as early as the second half of the 2030s, depending on market and regulatory conditions.
Fortum aims to meet Nordic power demand between 2030 and 2035 through onshore wind, solar, storage and extended nuclear plant operations.
Fortum CEO Markus Rauramo stated: “Decarbonisation of industries and societies through electrification is expected to significantly increase, even double, power demand in the Nordics towards 2050.
“Meeting such a demand increase with intermittent renewables only could lead to a very volatile power system with limited predictability in terms of availability and price, which would not be desirable for our customers or society.
“We at Fortum believe it makes sense to keep all low-carbon production technologies in the toolbox also in the future, and that’s why we will continue to develop our nuclear capabilities as a long-term option.”
Fortum’s nuclear experts spent thousands of hours evaluating different reactor technologies, including both large conventional reactors and small modular reactors (SMRs).
Following this assessment, the company has decided to deepen its collaboration with three selected plant suppliers: EDF, Westinghouse-Hyundai and GE-Hitachi.
The company aims to mitigate project risks and streamline the licensing process before making any investment decisions by working with these suppliers.
Fortum also advocates for nuclear power to receive equal treatment with other clean energy technologies in terms of financing and its role in producing low-carbon materials such as hydrogen, fertilisers and clean steel.
Fortum New Nuclear vice-president Laurent Leveugle stated: “From a project execution perspective, it is essential to ensure the maturity of the technology, limit the country-specific requirements and verify the vendor’s competencies already in the pre-investment phase.
“We plan to collaborate with three plant suppliers to mitigate project risks before we consider an investment. De-risking the licensing of a plant design as far as possible before construction is a must to reduce the likelihood of costly design changes, which can lead to delays in project execution.”
Fortum is developing a ready-to-build renewables pipeline and exploring pumped hydropower projects to prepare for the growing future demands.
The company is also extending the operational life of its Loviisa nuclear power plant in Finland.
In October 2024, Fortum announced a settlement with Vestas in their arbitration concerning wind energy projects in Russia.
