EIB makes first investment in modular nuclear reactors

By Kate Abnett

BRUSSELS, Sept 15 (Reuters) - The European Investment Bank is making its first investment in small modular nuclear reactors, it said on Tuesday, as Europe races to develop the next wave of nuclear energy technologies.

Small modular reactors (SMR) are a nascent nuclear technology that has garnered interest among data centre builders and other industries seeking around-the-clock, low-carbon energy supplies.

With a smaller capacity than conventional reactors — of up to 300 megawatts of power, versus 1 gigawatt for conventional plants — SMRs can be built in factories and shipped around the world, promising a faster, more nimble way to expand nuclear energy production.

The EIB will provide a €40 million ($46.18 million) loan to Finnish nuclear energy startup Steady Energy, which is developing a small modular reactor for producing heat, for a local district heating network, the bank said in a statement.

The loan is the first in a pipeline of SMR investments the EIB has planned, an official told Reuters. 

The 50-megawatt reactor, which is still in the concept stage, will use existing light water reactor technology, in which water moderates the nuclear chain reaction and cools the reactor. It is designed to be built underground, to increase the reactor's security.

Currently, only two commercial SMRs are in operation, in Russia and China. The European Commission wants Europe to have its first SMRs up and running by the early 2030s.

“The EIB’s support to nuclear sends a positive signal to investors," said Emmanuel Brutin, the head of industry association nucleareurope.

EU countries have long been at loggerheads over whether to promote atomic power, reflecting a split between members like France and Sweden which have nuclear power plants, and traditionally anti-nuclear countries like Germany and Austria, which cite concerns over safety and nuclear waste management.

As a result, the EU budget does not directly fund nuclear plants, although the EIB loan to Steady Energy comes with an EU budget guarantee. 

More than 80 SMR designs are in development worldwide, according to the International Atomic Energy Agency.

($1 = 0.8662 euro)

(Reporting by Kate Abnett in BrusselsEditing by Matthew Lewis)