EU approves €2 billion aid package for Pallas reactor in the Netherlands

The European Commission has approved the Dutch government's €2 billion investment in the construction of the Pallas research reactor at Petten.

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Aide européenne réacteur Pallas

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The European Commission has given the green light to the Dutch government’s €2 billion investment in the Pallas project, comprising a research reactor and a nuclear health center in Petten.
This approval complies with EU rules on state aid, ensuring that the project can go ahead without major distortions of competition.
The Pallas reactor will replace the existing High Flux Reactor (HFR), which has been in service since 1960.
Initially used for testing nuclear materials, the HFR has become essential for fundamental research and the production of medical radioisotopes, supplying 60% of Europe’s and 30% of the world’s needs for medical radioactive sources.

A state-of-the-art reactor

The Pallas reactor, a tank-in-pool design with a thermal power of 55 MW, promises more efficient use of its neutron flux than the HFR.
In addition to the production of medical radioisotopes, the project includes research, development and innovation activities in the fields of nuclear medicine and nuclear energy technologies.
State aid will take the form of loans and capital contributions totalling €2 billion to a new entity (NewCo) created to build and operate the reactor and nuclear health center.
This entity will result from the merger between Foundation Preparation Pallas-reactor and Nuclear Research and Consultancy Group (NRG).

Ensuring innovation and competition

The European Commission has assessed the aid as necessary and appropriate, given that the Pallas project would not be possible without this public support.
The aid is considered proportionate, as it is limited to the strict minimum needed to bridge a proven financing gap.
In addition, the Netherlands has put in place sufficient guarantees to minimize the impact on competition and trade.
Margrethe Vestager, executive vice-president in charge of competition policy at the European Commission, says: “This €2 billion measure enables the Netherlands to support a strategic project contributing to securing the supply of essential medicines and developing breakthrough innovations in nuclear technology, for the benefit of European citizens.”

Next steps in the Pallas project

The project is progressing well, with a construction license issued in February by the French Nuclear Safety and Radiation Protection Authority (ANVS).
Preparatory work on the foundations began in May 2023.
Peter Dijk, director of the Pallas program, reports that preparations for the construction phase of the reactor and associated buildings are well underway.
The Foundation Preparation Pallas-reactor has announced that its merger with NRG will begin next quarter, and the newly merged foundation will be transformed into a joint-stock company, with the Ministry of Health, Welfare and Sport as sole shareholder.
The realization of this promising project marks a significant step forward for the nuclear health sector, and strengthens the Netherlands’ position as a leader in nuclear innovation.

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