State aid application for nuclear power project outside Gävle
Published
The Government has received another application for state aid to build new nuclear power in Sweden. The application was submitted by Blykalla, a company seeking to establish a new nuclear power plant in Norrsundet, outside Gävle. This is the second application for state aid received by the Government.
“The fact that we’re now receiving another application to build new nuclear power shows that the model for state aid financing is working well. New nuclear power provides a stable and fossil-free base load, which can secure jobs and growth in Sweden,” says Minister for Financial Markets Niklas Wykman.
The application concerns a project that includes six lead-cooled modular reactors, estimated to generate 330 megawatts (MW) of pure base-load power. Converted to energy usage, this corresponds to approximately one year’s energy consumption for around 300 000 households.
Earlier this year, Blykulla applied for land permits in Norrsundet, and is now following up with an application for state aid for the same project.
The application will now be processed by the secretariat for financing of new nuclear power at the Ministry of Finance. Once an application has been received, the Government initiates the process of deciding on support. Beyond the processing of the actual application, this process also involves negotiations between the Government and the company concerned about the conditions and scope of the support. A continuous dialogue with the European Commission Directorate-General for Competition then leads to a formal evaluation of whether the support is compatible with EU state aid rules.
The first application for state aid relating to a nuclear power project was from Videberg Kraft AB in December. The company plans to build reactors at Ringhals outside Varberg. It is backed by Vattenfall AB and several large Swedish industrial corporations under Industrikraft i Sverige AB.
Background: Financing of new nuclear power
As of 1 August 2025, companies that want to build nuclear power reactors in Sweden may apply for financial support from central government.
State aid is provided in the form of government loans and two-way Contracts for Difference. The latter means that a contract is drawn up between a nuclear power plant operator and central government, ensuring a minimum level of compensation protection by central government and setting an overcompensation cap for the company.
Central government can provide loans for the construction and testing of new nuclear reactors, and for planning and other preparatory measures. Two-way Contracts for Difference may be entered into for routine operation of new nuclear reactors.
The state aid is limited and is planned to include investments of up to a total installed capacity of approximately 5 000 MW, which is equivalent to four large-scale reactors.
Applications are submitted to the Government and handled by a special secretariat at the Ministry of Finance. The responsible minister is Minister for Financial Markets Niklas Wykman.
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