Vattenfall signed an agreement with Estonian nuclear energy company Fermi Energia to become a minority shareholder in the company with an investment of 1 million euros.
In November 2020, Vattenfall expanded its ongoing cooperation with Fermi Energia by signing a Letter of Intent to explore the potential of Small Modular Reactor (SMR) distribution in Estonia. Vattenfall has now accepted the opportunity to become a minority shareholder with around six percent of ownership.
With this minority investment, Vattenfall can contribute our knowledge and feasibility studies related to costs, supply chains and the ability to design and operate nuclear energy technology on a small scale. Future innovative and fossil-free nuclear power production, such as SMR, appears to be very promising for Estonia, which has the highest average emissions of carbon dioxide per kilowatt-hour of electricity generated among all European Union countries, says Torbjorn Walborg, business district chief Obstetrics in Vatneval.
The expanded cooperation will continue to study the maturity of SMR technology and the prospects for deploying one or more of these reactors in Estonia until 2035. In addition to Vattenfall, other European energy companies are also involved. All participants gain a working insight into SMR technology and contribute their own expertise.
– Fermi Energia believes that we cannot sufficiently reduce Estonia’s CO2 emissions without reliable and affordable energy supplies from nuclear energy. For Estonia, only small modular reactors (SMRs) currently being developed in the United States, Canada and the United Kingdom are suitable. We believe Vattenfall is the right partner for us to move forward with expanding SMR based on the company’s expertise in the safe operation of nuclear energy and its mission to “ enable fossil-free life within a generation, ” says Calev Calmets, CEO of Fermi Energy.
Vattenfall’s investments will help fund important next steps in recruitment, training programs, and studies for, among other things, SMR technology. In the coming years, Kalev Kalemets says, we will, together with Vatnevol, conduct several studies on the potential location of SMR reactors, conduct field visits and training courses that provide real value to both Estonia and Sweden.
According to the letter in the letter of intent issued in November 2020, Vattenfal is studying the possibility of deploying small modular reactors in Estonia, particularly with regard to costs, construction, supply chain, operation / personnel / maintenance and structure of new construction.
By investing, Vatnfall will expand and strengthen its relationship with Fermi Energia. Vattenfall sees the potential in Fermi Energia’s business model and the company’s prospects for success with its goal in 2026 to apply for a decision in principle to implement SMR technology in Estonia, says Torbjörn Wahlborg.
Kalif Kalmet (left), CEO of Fermi Energia, and Torbjorn Wahlborg, head of the generation business district in Wattenfühl, in connection with the signing at the Estonian embassy in Stockholm the agreement that makes Wattenfal a minority owner within Fermi Energia.
Note to the editor:
Today, Estonia has the highest average CO2 emissions per kilowatt hour of electricity generated among all European Union countries. The Estonian government has formed a National Working Group on Nuclear Energy of senior officials in most ministries to assess the introduction of nuclear power generation. The group will analyze – with the help of foreign experts – the suitability of introducing nuclear energy to ensure the security and safety of energy supplies in Estonia.
For more information, contact:
Vattenfall Press Department, Tel: +46 8739 50 10, Email: [email protected]
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05-31-2021_Vattenfall PM Investment by Fermi Energia SMR