Forum on the Small Modular Reactor (SMR) Industry Ecosystem and Policy/Financial Environment, hosted by the Finnish Nuclear Industry Association (FinNuclear)
Participation of various experts including the Ministry of Economy, national technology research institutes, industrial federations, and companies
Institutional improvement and diversification of financial models for securing funds, such as attracting private investment, have emerged as key tasks.
Nuclear power generation has required a socially cautious approach due to issues such as safety and radioactive waste disposal. However, as climate change worsens and the importance of energy security is highlighted, nuclear energy is once again receiving attention as a practical alternative for achieving carbon neutrality.
Accordingly, Finland is gradually expanding the practical use of carbon-free energy sources, including nuclear power. As a representative example, the new large-scale nuclear power plant, Olkiluoto Unit 3, began full-scale commercial operation in 2023, and Onkalo, the world’s first permanent repository for high-level radioactive waste, is in the final stages of operation, aiming for operation in 2025. This shows that Finland is making efforts to respond technically and establish systems not only in nuclear power plant operation but also in the field of spent nuclear fuel processing.
Research on small modular reactors (SMRs), a next-generation nuclear technology that is attracting attention as a safer and more flexible energy production method, is also actively being conducted. Steady Energy, a company spun off from the Finnish national technical research institute VTT in 2023, is developing SMR (LDR-50) technology for district heating in remote areas and is collaborating with Aalto University, the national technical research institute (VTT), and Fortum, with the goal of commercialization in 2030. STUK, the nuclear regulator, is also preparing regulations for the introduction of SMRs.
Based on these trends, KOTRA Helsinki Trade Center participated in the Small Modular Reactor Industry Forum to understand the current status of development of small modular reactors (SMR), a key topic in the Finnish nuclear power industry, and to seek cooperation opportunities with Korean companies.
[Data: KOTRA Helsinki Trade Center photo]
Held for the third time this year, 'SMR Business Day 3' is a business forum hosted by Finnuclear, the Finnish Nuclear Industry Association, and is an event that covers the latest technologies, markets, policies, and financial models for small modular reactors. This event was attended by about 2025 business and government officials from Finland, Norway, Denmark, Sweden, Estonia, and other neighboring countries, as well as the US, France, the UK, Germany, the Czech Republic, and Japan, and shared their opinions. The main discussion was on strengthening cooperation in terms of policy, technology, and investment to promote practical commercialization of SMR technology.
[Data: KOTRA Helsinki Trade Center photo]
It consists of four sessions in total. In the first half of the session, the Finnish government and industry figures participated and presented on the new nuclear power plant market and financial environment, followed by a session on SMR technology and regulatory status. In the afternoon, the development conditions and cooperation possibilities for SMR projects in the Nordic region were discussed, and finally, a presentation on financing and business opportunities for new nuclear power plants was presented. Between each session, there was time for networking and viewing of exhibition booths, which led to active exchanges among participants.
[Data: KOTRA Helsinki Trade Center photo]
Session 1: Building a Market and Institutional Framework for SMR Development
The forum began with an opening speech by Finland’s Minister of Economic Affairs, Wille Rydman, who expressed the Finnish government’s strong commitment to expanding nuclear energy. Minister Rydman emphasized that low-carbon energy is key to the future energy transition and that hydrogen energy is also essential.
In the following presentation, George Borovas, a partner at Hunton Andrews Kurth, added heat by presenting on the finance and risk management strategies for the construction of new SMR nuclear power plants. He explained the special nature of SMR projects and the conditions for minimizing risks from an investment perspective. In particular, he emphasized that government policies, financial structures, and regulatory frameworks must be organically organized for the development of new nuclear power plants to be successful. To this end, he mentioned that continuous communication and cooperation between the government, industry, financial institutions, and regulatory authorities from the early stages, as well as trust-based networking among stakeholders, are key, and he said that this forum can be a venue for such exchanges and a starting point for opportunities for collaboration.
Kati Ruohomäki, Senior Policy Advisor for Energy and Climate at the Confederation of Finnish Industries (EK), emphasized that nuclear energy is once again receiving attention as a means of decarbonizing industry, transport, and heating in Europe. She also mentioned that the Business Alliance for Nuclear Energy, launched on February 2025, 2, is comprised of major industry organizations from 12 European countries, including the Confederation of Finnish Industries (EK), and actively supports the revitalization of nuclear energy at the EU level on behalf of the private industry. The Business Alliance for Nuclear Energy believes that an integrated response is needed in various areas, including regulation, finance, industrial ecosystem, and human resource development.
Session 2: Creating an ecosystem from technology development to regulatory reform toward SMR realization
Dr. Jani Halinen, Vice President of Nuclear Energy at the state-run research institute VTT, opened the second session by saying that the success of SMR technology depends more on ‘systems’ and ‘implementation’ than on the technology itself.
Matti Pentti, Chief Commercial Officer (CCO) of Steady Energy Oy, a spin-off from VTT, gave a presentation focusing on the technological differentiation, market strategy, and commercialization schedule of the small modular reactor (LDR-50) for district heating. He explained that the research started from the awareness that about 50% of the total energy consumption in Europe is used for heating, and that more than 59% of this still depends on fossil fuels and biomass. Steady Energy is focusing on the development of technologies such as passive cooling systems, dual pressure vessel designs, and natural circulation-based operation methods with the goal of implementing simple and safe nuclear power systems.
In addition, Steady Energy is also actively pursuing a plan to build a demonstration plant based on this technology. Currently, the Salmisaari underground space in the center of Helsinki is being considered as the first candidate site, where the LDR-50 demonstration reactor facility using electric heaters instead of actual fuel will be installed. The demonstration facility aims to simulate the actual operating conditions of the reactor to test cooling systems, operating characteristics, and safety, and to secure a basis for regulatory certification before full-scale commercialization.
The project was made possible by the recent relaxation of regulations announced by the Finnish nuclear regulator, the Radiation and Nuclear Safety Authority (STUK), in February 2024. Previously, reactors had to be installed at a certain distance from residential areas, but considering the characteristics of the small modular reactors (SMRs), the distance restriction was abolished, allowing them to be installed in urban areas by law. In line with this change, the city of Helsinki is phasing out coal-fired power plants and adopting SMRs as one of its core strategies as an alternative, with the goal of achieving carbon neutrality by 2.
Energy company Helen has signed a letter of intent (LOI) with Steady Energy to deploy up to 10 SMRs, with plans to expand the business in the future following technical verification and policy approval procedures. The expected investment cost of the initial pilot project is estimated at 1500 to 2000 million euros, and Mati stated in his presentation that the initial commercialization target markets are neighboring countries such as Finland, Sweden, the Baltic states, and Poland, and that the company aims to position itself as a practical low-carbon alternative for district heating in Europe. He added that in the future, the application areas will be expanded to industrial steam (food and chemical processes), desalination (LOI negotiations are underway with a Middle Eastern country), and district cooling. Based on these technological advantages of simple and safe design, high efficiency, and miniaturization that allows for installation in urban areas, Steady Energy is presenting a concrete blueprint to position itself as a low-carbon alternative energy source for district heating in Europe.
<Steady Energy's demonstration reactor model>
[Source: Helsinki Times article (2025.05.10.)]
Next, Tor Stendahl, CEO of Calogena, a subsidiary of the French Gorgé Group that is developing SMR solutions for district heating, continued the presentation. Calogena said that it is currently expanding licensing and business cooperation, focusing on Finland, Northern Europe, and the Baltic countries. According to the presentation, the key point of these reactors is that they are designed to operate safely without human intervention. For example, cooling valves that operate by gravity even in the event of a power outage or breakdown, cooling water tanks that operate automatically, and a double-wall structure (containment system) that can withstand pressure are applied, so that the reactors can be safely stabilized without separate external power or complex operations. Thanks to these safety technologies, only a minimal amount of manpower is required for daily operation, and they are ultimately designed to enable fully autonomous operation, he suggested the direction of future development.
<Calogena Announcement>
[Data: KOTRA Helsinki Trade Center photo]
The second session concluded with a presentation by the Finnish Radiation and Nuclear Safety Authority (STUK). The Minister of Economic Affairs briefly explained the first session, and this was covered in more depth here. Finland is reviewing its existing nuclear energy law and regulations to accommodate new nuclear business models such as SMRs. The government and STUK aim to revise the existing laws and regulations to provide a modernized system, flexible licensing structure, and international cooperation while maintaining the current level of safety. The table below shows the institutional changes that STUK is pursuing.
Session 3: Conditions and strategic approaches for the development of new nuclear power plants in Northern Europe
The third session in the afternoon consisted of a presentation by Anni Jaarinen, Vice President of Nuclear Energy at Fortum, which operates a total of 3.2 GW of nuclear power plants in Finland and Sweden, and a panel discussion. Vice President Anni briefly introduced Fortum’s nuclear power plant operation status and explained the necessity and challenges of expanding new nuclear power plants in Europe. He emphasized that reliable project execution capabilities, a stable demand base (customer acquisition), a joint investor structure, and a predictable financing structure are key factors for the development of new nuclear power plants in the future. This was a statement based on the realistic recognition that many technologies have not yet been proven and standardization is in progress, while acknowledging the potential of small modular reactors.
<Fortum Announcement>
[Data: KOTRA Helsinki Trade Center photo]
Following the presentation by Vice President Anni Jarinen, a discussion was held with a total of five panelists, moderated by him. The panelists included representatives of major companies in Northern Europe that are developing SMRs, including Kärnfull Next from Sweden, Helen from Finland, Fermi Energia from Estonia, and Norsk Kjernekraft from Norway. They discussed the prerequisites for developing SMR projects in Northern Europe and neighboring countries, including policy environments, licensing processes, investment attraction strategies, and ways to secure community acceptance. They emphasized that the strategic value of SMRs lies in their ability to simultaneously supply electricity and heat, their flexibility in being installed in urban areas, modularization and serial production in terms of the supply chain, stability, and regulatory flexibility. They also suggested that fleet production or fleet strategies can overcome the limitations of high individual unit costs of SMRs.
* Note: Fleet strategy: A strategy to develop, build, and operate multiple reactors of the same design in batches, unlike the existing method of designing and building one reactor at a time.
<Session 3 Panel Discussion>
[Data: KOTRA Helsinki Trade Center photo]
Session 4: Making Nuclear Investment Real: The Intersection of Finance, Policy, and Implementation
The final session, moderated by Harry Varjonen, the event’s organizer, the Finnish Nuclear Energy Association, focused on the financing realities of new nuclear power and SMR projects, as well as strategies for attracting private investment. Panelists included Milko Kovachev, board member of the International Nuclear Infrastructure Bank (IBNI), George Borovas, head of nuclear at law firm Hunton Andrews Kurth, and Juhani Hyvärinen, professor at LUT University and technical director at the Finnish Building Construction Industry and Trade Association, who discussed how institutional gaps, investment risks, and technology maturity gaps can be overcome in their respective fields of expertise. They all shared their views on how new nuclear projects, including SMRs, can play a key role in the global energy transition, but current market conditions make it difficult to invest in nuclear power. In particular, they agreed that ① high initial investment costs, ② long project periods, and ③ high uncertainty about profit recovery are the main factors limiting the inflow of private capital.
George Borovas approached it from the perspective of investors. He pointed out that the technological uncertainty (lack of design verification, FOAK risk) of SMR projects, the lack of a regulatory system, and past nuclear power plant construction failures (delays and cost overruns) are perceived as major risks by investors. He suggested solutions such as a combination of experienced project partners, phased financing, government policy clarity and financial guarantees, and securing a trust-based communication channel with regulators. Above all, he emphasized that conversations with investors should be conducted in the language of investors, not the language of the industry.
Juhani Hjürviärinen analyzed how close SMRs are to commercialization from a technology perspective, and explained the difference in the speed of market adoption due to the technology maturity level (TRL) gap. In particular, he emphasized the need for state-led demonstration investments and standardized technology verification procedures to bridge the gap between early demonstration (FOAK) and full-scale commercial (NOAK) reactors.
The most emphasized point was the structural limitations of financing. Milko Kovatchev said that the current private financial system is not suitable for projects such as nuclear power projects that require large initial investment costs and long recovery periods, and introduced the International Nuclear Infrastructure Bank (IBNI), which is being planned as a means to supplement this. It is planned to establish a foundation based on the International Nuclear Finance Summit scheduled for September 2025.
<Milkovatchev introducing the International Bank for Nuclear Infrastructure (IBNI)>
[Data: KOTRA Helsinki Trade Center photo]
IBNI is not just a simple financial institution, but it is a trustworthy investment platform and risk mitigator (anchor lender) that includes not only profitable projects but also early stage demonstration projects (FOAK) in which governments, international organizations, and the private sector participate, and it is pursuing the role of a trustworthy investment platform and risk mitigator (anchor lender) by providing nuclear finance products that meet the green classification system and ESG criteria. In particular, it suggested that private capital inflow can be induced by combining long-term profit-guaranteed contract models such as contracts for difference (CfD), regulated asset basis (RAB), and power purchase agreements (PPA), and contract models with guaranteed profit structures can be actively utilized. He said that if each government properly implements energy and climate-related policies, more than 2050 small nuclear power plants will be built around the world by 1000, and the electricity that they can produce will be 100 GW, which is equivalent to about 120 large nuclear power plants. This is part of the contents of the International Energy Agency (IEA)’s 2024 report, The Path to a New Era for Nuclear Energy.
<Global nuclear energy investment scale by situation and type, 2023-2050>
(Unit: US$ billion, 2023 exchange rate)
[Source: Translation of some excerpts from the International Energy Agency report]
At the end of the session, the panelists commonly emphasized that small modular reactor technology has matured to a certain extent and that regulatory and financial systems have been sufficiently discussed. In the end, the panelists concluded the session by agreeing that sufficient discussions had been made and that it was now time to actually begin feasible SMR or new nuclear power plant projects.
Many presenters emphasized the importance of project delivery capacity, pointing out the need for an entity that can take responsibility for the entire process from simple technology provision to supply chain operation, construction management, and risk response until completion. This shows that there is a growing demand for partners with experience-based project management capabilities.
In this regard, the technological prowess and overseas project execution experience of Korean nuclear power companies were mentioned several times throughout the forum. The Barakah nuclear power plant case in the United Arab Emirates, overseas EPC project participation performance, and cooperation with global partners (Westinghouse) were briefly mentioned, revealing that Korea is recognized as a partner with not only technological prowess but also practical execution capabilities. Mr. A, an official from Steady Energy whom KOTRA Helsinki Trade Center met in person, said, “Recently, there has been active exchange of trade delegations between Finland and Korea, and Finland is also interested in the possibility of technological cooperation with Korea.” He continued, “Currently, Finland is preparing to introduce next-generation nuclear power technologies including SMRs, and is broadly reviewing the possibility of cooperation with various countries.” The project management experience and performance of Korean companies can serve as a real competitive factor in the European nuclear power market, and suggests that opportunities as a supply chain partner may expand in the future SMR verification and commercialization process.