Europe Makes its First SMR Investment

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The financial lending arm of the European Union (EU) has announced its first investment in the next generation of nuclear power technology, small modular reactors (SMRs).

The European Investment Bank (EIB) has announced its first ever investment into small modular reactor (SMR) technology with backing for Finland's Steady Energy, whose LDR-50 reactor is being developed to heat district heating systems. 

The bank has agreed to fund the continued development of the of the company's LDR-50 reactor with a loan of 40 million euro (US$46 million), stating that the investment was in line with the European Commission's (EC's) strategy to bring Europe's first SMRs online by the early 2030s. SMRs are one of the fastest growing sectors of the nuclear power sector, with Europe emerging as one of the key battlegrounds for the first wave of mini reactors. According to Industrial Info Resources data, there are 43 SMR projects in Europe worth a potential US$147 billion in investment. 

The Reactor

The financing will accelerate the company's development of the heat-only LDR-50 SMR, which will have a generating capacity of 50 megawatts (MW). It is designed around "existing proven" light water reactor technology. By combining passive safety features with a simpler design requiring fewer systems, the reactor is intended to be more cost-effective to build and operate, according to Steady Energy. It is also designed to be built underground to enhance safety and security. Unlike most other SMRs, which use reactor heat to generate electricity, the LDR-50 boasts a lower-pressure design that produces heat as its main output, allowing it to be supplied directly to district heating systems. The developer said that because the heat does not first need to be converted into electricity, the design can use a much larger share of the reactor's thermal output.

EIB Group Vice-President Karl Nehammer said: "The support to Steady Energy is a flagship example of how the EIB Group is backing innovation to strengthen Europe's competitiveness, enhancing energy autonomy and expanding access to affordable clean energy. We are actively looking to support Europe's most promising SMR pioneers. By providing stable, low-carbon energy alongside renewables, SMRs can help build a more secure and resilient European energy mix, reducing reliance on fossil fuels and exposure to volatile energy prices."

Steady Energy Chief Executive Officer Tommi Nyman added: "More than 40% of final energy demand is heat. Most of the heat we consume comes from fossil fuels. With Steady Energy's solution, we can wean ourselves further away from imported fuels. We are extremely pleased that the EIB has decided to support Steady Energy as we proceed towards our first concrete projects in the next few years."

Czech Republic Most Active Market

To date, the Czech Republic is the most active SMR market in Europe, accounting for seven of the proposed 43 SMR projects in Europe. In August, the government added two more sites for proposed SMR plants in a deal with the U.K.'s Rolls-Royce SMR. State-owned power company ČEZ and Rolls-Royce SMR have signed a memorandum of understanding to begin preparatory activities for SMR plants at Tušimice and Dětmarovice. They have already agreed to work on building the country's first SMR near the Temelin nuclear power plant in the mid-2030s. The projects will use the 470-megawatt (MW) Rolls-Royce SMR design based on a small pressurized water reactor. For additional information, see August 03, 2026, article--Czech Republic Advances SMR Power Rollout at Two More Sites.

Key Takeaways

• The EU's European Investment Bank (EIB) has announced its first ever investment into small modular reactor (SMR) technology.
• Finnish company Steady Energy is developing the LDR-50 reactor to provide heat directly to district heating systems. 
• Industrial Info Resources is tracking 43 SMR projects in Europe worth a potential US$147 billion in investment.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).