Rolls-Royce Forms Major Nuclear Partnership in Sweden

British engineering powerhouse Rolls-Royce has forged a significant multibillion-pound partnership with Videberg Craft, which is a part of the state-owned Swedish energy firm Vattenfall. This collaboration aims to construct three small modular reactors (SMRs) in Sweden.

This initiative marks the first new nuclear power plant in Sweden in over four decades, with the British government touting it as “a landmark moment” for advancing nuclear power in the UK.

In a formal statement, Rolls-Royce SMR highlighted that the decision followed an extensive four-year selection process and now positions Rolls-Royce as the third European nation, following the UK and the Czech Republic, to implement an SMR nuclear solution. These three reactors will be located on the Varo Peninsula on Sweden’s western coastline.

The Rolls-Royce SMR is the company’s modular reactor design, which is currently nearing the end of the UK regulatory approval process. The first of these Swedish SMRs is expected to be operational by the mid-2030s. Interestingly, this announcement came just a day after Rolls-Royce revealed another partnership with Japan focused on an advanced modular nuclear reactor (AMR).

Chris Cholerton, CEO of Rolls-Royce SMR, expressed enthusiasm about being selected by Videberg Craft to bring new nuclear energy to Sweden. He noted that this robust endorsement followed a careful evaluation process that began in 2022, which examined both large-scale and modular reactor options. Cholerton also expressed gratitude for the collaboration and trust from the Videberg Kraft team.

The UK Labor government seems to claim some credit for this decision, stating that the deal was bolstered by the UK Government’s export campaign, which included Business Secretary Peter Kyle’s visit to Sweden this year. Prime Minister Keir Starmer described the deal as a significant achievement for the UK economy, highlighting British engineering prowess on a global stage and securing valuable jobs and investments while also supporting export growth.

Currently, nuclear energy fulfills about 30 percent of Sweden’s electricity needs. Sweden had initially aimed to phase out nuclear power back in 1980, but recently, following a significant lapse of forty years, the Swedish parliament has indicated a renewed interest in nuclear energy. Last year, the Riksdag approved a financial backing bill for the next generation of nuclear power plants.

In a related legislative development, on the same day that Rolls-Royce announced its partnership, the Swedish Riksdag approved changes to environmental regulations that will pave the way for expanding nuclear power into additional coastal areas. Starting July 15, 2026, certain coastal regions will lift the restrictions on building nuclear facilities.