The creation of the Nuclear Power Alliance in Denmark marks a strategic shift in a country historically opposed to civil nuclear energy. The group brings together major industrial actors, a trade union, a research foundation and an investment fund. They share a common goal: to integrate small modular reactors (SMRs) into Denmark’s future energy mix, with a clearly stated industrial objective.
A softened legal framework under economic pressure
Since 1985, a parliamentary resolution has prohibited the construction of nuclear power plants in Denmark. This non-constitutional ban could be lifted by a simple majority. In May 2025, a majority of members of parliament approved the formal examination of the nuclear option as part of the 2020 Climate Act, which mandates yearly climate planning through to 2045.
The Nuclear Power Alliance aims to contribute from this early stage as a technical interlocutor for the government. Its declared aim is to anchor the nuclear debate within an industrial, economic and scientific framework, rather than leaving it solely in the ideological domain.
A coalition structured around industrial interests
The Confederation of Danish Industry (DI) is coordinating the initiative, with a focus on controlling energy costs for electricity-intensive industries. The Dansk Metal trade union supports the move due to the skilled job opportunities it would generate in nuclear engineering. Topsoe, a technology provider for the hydrogen sector, views SMRs as a stable power source to secure supply for its industrial customers.
The Novo Nordisk Foundation acts as a research financier, with plans to support SMR demonstration projects and related academic programmes. Engineering firm Niras aims to compete for future studies, design and decommissioning contracts. Investment fund 92 Capital, already active in Sweden and Finland, is positioning itself as a Nordic nuclear project backer.
A tool to strengthen power supply security
Denmark’s power mix is heavily reliant on wind and solar, but remains structurally dependent on regional interconnectors. SMRs are seen as a flexible solution to stabilise the production of green hydrogen, which is currently exposed to electricity price volatility on the spot market.
The combination of offshore wind, SMRs and electrolysis could enable the signing of long-term corporate PPA (Power Purchase Agreement) contracts, complementing existing renewables-based deals. This approach aims to reduce the energy price risk premium that burdens industrial investment decisions.
Strategic positioning within the European SMR alliance
Beyond its domestic energy agenda, the alliance seeks to position Denmark as a key player in the European SMR value chain. The European Industrial Alliance on SMRs, led by the European Commission, aims to build a joint industrial offering by the early 2030s. Denmark is seeking to host research centres, engineering offices and joint ventures with technology developers.
Alignment with EURATOM standards, compliance with international sanctions, and the selection of Western partners enhance Denmark’s attractiveness as a neutral platform for cross-border nuclear projects. Initial deployments could take place abroad, particularly in the Baltic or Nordic regions.
Implications for Nordic power markets
Introducing nuclear capacity in Denmark would directly affect electricity flows in Northern Europe. It would reduce the need for forced wind exports during periods of overproduction and for imports during low production, thus strengthening autonomy and stabilising regional spot prices.
SMRs offer the level of granularity needed to participate in Nordic capacity and reserve markets. Their integration into these systems would help provide flexibility that is difficult to achieve with renewables alone. Danish industrial clusters would benefit from more diversified options to secure long-term power supply.
A political signal for Europe’s energy value chain
The support of core economic actors for this initiative sends a clear message to suppliers and regulators across Europe. By positioning itself as a potential host or partner for SMR projects, Denmark aims to influence upcoming decisions on investment allocation, technology standards and governance of the nuclear supply chain.
This repositioning could also act as leverage in European discussions on green taxonomy, low-carbon industrial policy and access to EU infrastructure funding. A Danish nuclear engagement would strengthen the bloc of countries supporting technological diversification in the path to net zero.
