Swedish state-owned energy group Vattenfall has signed a strategic agreement with the Industrikraft i Sverige AB consortium to develop new nuclear generation capacity at Ringhals. This collaboration formalises Industrikraft’s entry into the capital of Videberg Kraft AB, a project company created by Vattenfall to submit a request for public support under the Swedish state aid law for nuclear.
Coordinated industrial support for the Videberg Kraft project
Industrikraft, established in June 2024 to strengthen the country’s electricity supply, includes several major industrial players such as ABB, Alfa Laval, Hitachi Energy, SSAB and the Volvo Group. The consortium will hold a 20% stake in Videberg Kraft AB, while Vattenfall retains majority ownership and will continue to lead project development. Industrikraft’s initial investment totals SEK400mn ($42.2mn), alongside commitments in technical expertise and project management.
The project aims to establish new nuclear units at the existing Ringhals site, located on the Värö Peninsula. The initiative aligns with reforms adopted by the Swedish government in May, which offer state-backed loan guarantees for the construction of new reactors with a minimum capacity of 300 MWe at existing locations.
Application for public support and technology selection underway
Under the terms of the agreement, Videberg Kraft AB will serve as the project’s legal vehicle, a mandatory step to request state aid. The Swedish government has stated its intention to also become a partner in the company. Once the reactors are built and fully licensed, two-way Contracts for Difference could be implemented to secure long-term revenues.
Last August, Vattenfall announced its preference for Small Modular Reactor (SMR) technology, with two shortlisted options: GE Vernova Hitachi’s BWRX-300 and Rolls-Royce’s SMR. The final supplier selection and the official state risk-sharing application are expected in the next phases.
“The willingness of these companies to co-own the project indicates expected demand for fossil-free electricity production,” said Anna Borg, President and Chief Executive Officer of Vattenfall, adding that the next step will be preparing the application for state risk-sharing.
