Blykalla Seeks State Aid for Second SMR Plant in Sweden

On August 25, Blykalla submitted a proposal to the Swedish government for a nuclear power plant at Untra. The proposed facility would incorporate up to eight lead-cooled small modular reactors (SMRs), achieving a total capacity of up to 440 MWe. This marks the second such application from Blykalla, following a May submission for a six-unit project in Norrsundet, both located in east-central Sweden.

Blykalla has established Untra Nuclear Power AB to serve as the license holder and financing vehicle for the Untra plant. The company anticipates that strategic and financial investors will join its ownership structure over time. Blykalla, through Untra Nuclear Power, has applied for state support for the construction of the Untra plant, having previously sought government financing for its Norrsundet project in early June.

The Swedish state aid framework is designed to support new nuclear power initiatives through a state loan, a two-way contract for difference, and a risk-sharing mechanism. The specific terms of this state aid are negotiated between the project company and the Swedish state, with any support requiring approval from the European Commission in accordance with EU State aid rules. Negotiations commence once the government decides to proceed with an application.

Following the receipt of Blykalla's application for the Untra nuclear power plant, the government has directed the County Administrative Board in Uppsala County to prepare a facility plan. This plan will guide the use of land and water areas for the nuclear facility. Recent legislation permits government approval of an application if a valid facility plan exists for the proposed facility. The construction plan must include an environmental impact statement and a plan description, detailing planning conditions and implementation strategies. This plan is due by April 30, 2027.

Blykalla, originally founded in 2013 as a joint stock company and formerly known as LeadCold, is developing the SEALER (Swedish Advanced Lead Reactor). The company's objective is to have its first 140 MWt/55 MWe SEALER-55 commercial reactor operational in the early 2030s. Jacob Stedman, CEO of Blykalla, stated that an efficient review process could enable the first reactor at Untra to be operational during the first half of the 2030s, addressing the significant and growing need for dispatchable power in that region of Sweden.

Sweden's government adopted a positive stance towards nuclear energy in October 2022. In November 2023, a roadmap was unveiled, projecting the construction of new nuclear generating capacity equivalent to at least two large-scale reactors (2,500 MWe) by 2035, with up to 10 new large-scale reactors (potentially including SMRs) by 2045. A new act on state aid, which came into force on August 1, 2025, has enabled companies to apply for this support. To date, approval has been sought for nuclear facilities at five sites, totaling up to 3,700 MWe, with financial support applications for nuclear reactors at two additional locations, encompassing seven projects seeking state aid.