Vattenfall and Industrikraft's jointly owned nuclear company Videberg Kraft has chosen British firm Rolls-Royce SMR as its supplier for new nuclear power development in Sweden, marking the end of a four-year selection process that began with more than 70 candidate options. The project will see three small modular reactors constructed on the Värö Peninsula, adjacent to the existing Ringhals nuclear site on Sweden's west coast.

A Four-Year Search Concludes

The announcement represents the culmination of an extensive evaluation exercise that Videberg Kraft described as having been reviewed by an independent party.

The company was established as a joint venture between Swedish energy group Vattenfall and industrial consortium Industrikraft, with the two parties having formalised their partnership through a signed agreement in November 2025.

Martin Darelius, Acting Head of New Nuclear at Vattenfall, said the decision reflected a thorough appraisal of available suppliers. "Our overall assessment is that they offer the strongest conditions for delivering a successful project.

This has been a highly thorough process, which also has been reviewed by an independent party," he said. Darelius added that Vattenfall would continue to provide full support in the work ahead.

The selection of Rolls-Royce SMR now triggers the start of detailed planning for the three-reactor project at the Värö Peninsula site.

Reactor Specifications and Technology

Each of the three planned reactors will produce 470 megawatts of electrical output. Together, the three units are expected to generate around 12 terawatt-hours of fossil-free electricity per year, a contribution that Videberg Kraft described as an important addition to southern Sweden's energy supply.

The technology underpinning the Rolls-Royce SMR design is a pressurised water reactor, the same reactor type currently in operation at Ringhals. Vattenfall cited this alignment with existing Swedish nuclear technology as part of what makes the concept attractive, noting that familiarity with the underlying technology reduces project complexity.

Rolls-Royce SMR is a British company whose principal owner, Rolls-Royce, has a long history as a supplier of nuclear propulsion systems for submarines. The SMR venture has developed its reactor concept, building on that submarine nuclear technology base.

Modular Manufacturing as a Risk Reduction Strategy

A central feature of the Rolls-Royce SMR approach is its emphasis on modularised, industrialised manufacturing. Under the concept, each component is manufactured and assembled in a controlled factory environment before being delivered in its entirety to the operational site, where final assembly takes place.

Videberg Kraft said this manufacturing methodology is specifically designed to reduce the risk of on-site delays, a factor that has affected large-scale nuclear construction projects in several countries in recent decades.

Vattenfall described the industrialised construction concept as one of the key reasons Rolls-Royce SMR emerged as the preferred supplier from the competitive process.

The company said the approach offers efficiency advantages compared with conventional large-scale nuclear plant construction, where a greater proportion of work is completed on location and is therefore more exposed to the scheduling risks associated with outdoor construction environments.

Strategic Importance for Sweden

The project represents the first steps toward new nuclear construction in Sweden in more than 40 years. Anna Borg, who serves as both President and Chief Executive of Vattenfall and as a board member of Videberg Kraft, framed the development in terms of Sweden's broader industrial and energy ambitions.

"New nuclear power is an important part of the Swedish energy system and will support the transition of industry and thereby strengthen Sweden's long-term competitiveness," Borg said. She described the supplier selection as a major step forward for Vattenfall, Industrikraft, and Videberg Kraft jointly.

The geographic choice of the Värö Peninsula, situated next to the Ringhals plant, places the new reactors at an established nuclear site on Sweden's west coast, an area already associated with nuclear power infrastructure and the regulatory and operational expertise that surrounds it.

State Aid Application Already Lodged

The supplier announcement follows other preparatory steps the project company has taken in recent months. In December 2025, Videberg Kraft submitted an application for state aid to support the investment in new nuclear capacity at the Värö Peninsula site.

The application signals that the project's financial architecture is expected to involve some form of government support, though the terms and outcome of that application were not detailed in the supplier selection announcement.

With a supplier now formally chosen, Videberg Kraft said detailed planning will commence. The project faces the full range of regulatory, permitting, and financing processes that precede construction of any new nuclear facility, a pathway that in Sweden has not been navigated for new-build purposes in several decades.

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