Studsvik seeks state support to build 1,400 MW nuclear power in Sweden

By Nora Buli

OSLO, June 12 (Reuters) - Swedish nuclear services company Studsvik on Friday applied for state support to develop up to 1,400 megawatts of nuclear power from small reactors, as the government backs the energy form to shore up the country's security of supply.

The centre-right government has offered up to 440 billion crowns ($47 billion) in loans, 40-year price guarantees and support for nuclear waste management to try to spur the construction of at least 5,000 MW of nuclear capacity. It would help meet increased electricity demand in the country that analysts have forecast will double by 2045.

Studsvik is the third applicant to the government scheme after Blykalla and Vattenfall.

"New nuclear is moving from policy ambition to industrial execution," Karl Thedeen, CEO of Studsvik, said, adding the capacity is needed to replace ageing baseload capacity and to support Swedish industrial growth. 

He also said state involvement was vital because nuclear projects are "very high-risk".

Studsvik's application is for up to 1,400 MW of light-water small modular reactor capacity in southern Sweden with several sites being developed in parallel, he said, but did not provide a figure for how much funding it wants.    

"We have some indication from the partners that we're talking to now, but they also need to firm up before we have that full scope," Thedeen told Reuters. 

Without disclosing any names, he said Studsvik planned to form a consortium with reactor technology providers and private investors, and would also look into how it can get the state to invest in a special company to run the project.

Rival Vattenfall has created a specific company and the government has said it will take a direct stake.

Any new reactors will require approval from the government, the nuclear regulator, the environmental court and the European Union.

Swedish electricity production is already 98% fossil free, predominantly stemming from hydropower, wind farms and existing nuclear plants.

(Reporting by Nora Buli; editing by Barbara Lewis)