US energy group Holtec International has announced it has signed a memorandum of understanding with Hungarian company MVM to explore the deployment of its SMR-300 small modular reactor technology in Hungary. The agreement marks a new step in the nuclear partnership between the two countries, weeks after a bilateral protocol was signed between Washington and Budapest on civil nuclear cooperation.
The memorandum was signed by Rick Springman, President of Holtec’s Global Clean Energy Opportunities division, and Károly Mátrai, Chief Executive Officer of MVM. The agreement paves the way for the introduction of a 300 MW pressurised water reactor using commercially available fuel. According to Holtec, the reactor features flexible cooling options suitable for local site conditions.
Towards a regional SMR platform
The announcement comes amid closer energy cooperation between the United States and Hungary. US authorities have recently expressed their ambition to make Budapest a regional hub for the development and deployment of Small Modular Reactors (SMRs) in Central Europe. Hungary has signalled its intention to support the construction of up to 10 SMRs, with a potential value of up to $20bn.
The agreement between Holtec and MVM fits into this strategy, with the aim of supplying a domestic baseload electricity source without carbon emissions. The technology is also intended to support Hungary’s energy-intensive industrial sectors.
A nuclear mix in transition
Currently, around half of Hungary’s electricity is generated at the Paks nuclear power plant, located about 100 kilometres south of Budapest. The site comprises four VVER-440 reactors supplied by Russia, which were commissioned between 1982 and 1987. An extension project, Paks II, involves the construction of two new VVER-1200 units under an intergovernmental agreement signed in 2014.
The Paks II project is financed up to 80% by a Russian state loan amounting to EUR10.0bn ($10.5bn). The first concrete pour for the new unit is expected in February 2026. In parallel, Hungary is also assessing other technological options. In August, Hungarian firm Hunatom signed a letter of intent with Polish company Synthos Green Energy to jointly develop up to 10 BWRX-300 SMRs designed by GE Vernova Hitachi.
Expansion of nuclear partnerships
Hungary’s SMR development strategy reflects growing interest in compact nuclear solutions, viewed as faster to deploy and potentially more adaptable to site-specific conditions. The presence of multiple international players, including Holtec and GE Vernova Hitachi, highlights Hungary’s attractiveness for emerging nuclear technologies.
In a statement, Holtec indicated that the agreement aims to strengthen national energy security while supporting long-term economic development. The company also noted that the signing builds on the intergovernmental agreement signed in November in Washington, which laid the foundation for a strategic nuclear cooperation between the two countries.
