Rolls-Royce Holdings PLC (LSE:RR.) and Finland's Fortum have signed an agreement to jointly explore the opportunities for the deployment of small modular reactors (SMR) in Finland and in Sweden.
In a statement, the Nordic energy company said the venture is part of a feasibility study exploring the prerequisites for new nuclear in Finland and Sweden in cooperation with customers and partners.
Rolls-Royce SMR was established as a separate division in the FTSE 100 company in November 2021 to bring a modularised, factory-built SMR to market, capable of generating 470 megawatts (MW) of low-carbon electricity for at least 60 years.
“Rolls-Royce SMR is honoured to be collaborating with Fortum, as one of the most respected nuclear operators in the Nordics, and we see great benefit in the co-operation between our two organisations,” said Alan Woods, a strategy director in Rolls Royce SMR.
“The importance of energy security has increased dramatically, and we see our unique approach to nuclear new build - focusing on delivery capability and cost-effectiveness - as the best solution to providing low-carbon energy for generations to come,” he continued.
As well as Rolls Royce, Fortum’s nuclear feasibility study has seen it make cooperation agreements with the likes of France's EDF and Sweden's Kärnfull Next.
Any potential investment decision will be made at a later stage.
Last week Rolls-Royce welcomed the government’s new commitment to small modular reactors (SMRs) in the UK, especially given it is the only manufacturer.
Chancellor Jeremy Hunt announced financial support for the prospective mini nuclear reactor industry in his spring budget on Wednesday, including a commitment to co-fund projects that get approved.
“Rolls-Royce SMR has called for rapid progress from the government and we welcome the adoption of that principle in this process,” the FTSE 100-listed company told Proactive.
Shares in Rolls-Royce jumped 4.6% to 147.44p in London on Tuesday