The European Investment Bank (EIB) is investing up to €40 million in Finnish nuclear-technology company Steady Energy as part of a broader financing package involving institutional, strategic and retail investors.
The financing will accelerate the company’s development of a heat-only small modular reactor. This is the EIB’s first investment in SMR technology, and supports the European Commission’s strategy to bring Europe’s first Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs) online by the early 2030s.
Building on light water reactor technology systems
Steady Energy’s 50 MW reactor concept is designed to supply low-carbon heat to district heating networks. The reactor is designed to build and improve on existing proven light water reactor technology. By combining passive safety features with a simpler design requiring fewer systems, the reactor is intended to more cost-effective to build and operate. It is also designed to be built underground to enhance safety and security.
The investment will support Steady Energy’s research and development, testing and licensing activities as the company advances towards its first commercial deployment. The funded activities will be carried out in Finland between 2026 and 2028.
The reactor uses water as a moderator and coolant, a technology widely used in existing nuclear reactors. Unlike conventional nuclear power plants and most other SMRs, which use reactor heat to generate electricity, Steady Energy’s lower-pressure design produces heat as its main output, allowing it to be supplied directly to district heating systems.
Because the heat does not first need to be converted into electricity, the design can use a much larger share of the reactor’s thermal output. Its simpler design is also intended to reduce capital and production costs.
SMRs can help secure Europe’s energy independence
“The support to Steady Energy is a flagship example of how the EIB Group is backing innovation to strengthen Europe’s competitiveness, enhancing energy autonomy and expanding access to affordable clean energy,” said EIB Group Vice-President Karl Nehammer. “We are actively looking to support Europe’s most promising SMR pioneers. By providing stable, low-carbon energy alongside renewables, SMRs can help build a more secure and resilient European energy mix, reducing reliance on fossil fuels and exposure to volatile energy prices.”
Steady Energy, which was spun out from the Technical Research Centre of Finland VTT in 2023, is building a non-nuclear pilot facility in Helsinki to test key safety systems and support the licensing process with the national regulator.
“Over 40% of final energy demand is heat. Most of the heat we consume comes from fossil fuels. With Steady Energy’s solution, we can wean ourselves further away from imported fuels,” said Steady Energy Chief Executive Officer Tommi Nyman. “We are extremely pleased that the EIB has decided to support Steady Energy as we proceed towards our first concrete projects in the next few years.”
The EIB investment takes the form of a senior unsecured convertible loan
This quasi-equity structure provides Steady Energy with long-term patient capital, while giving the EIB the option to convert its investment into listed shares.
The operation is also is backed by the InvestEU programme, which supports investments in innovation and the green transition.
3North Partners Plc, a Finnish public limited liability company, and Steady Energy have announced a contemplated combination and the listing of the combined company on Nasdaq First North Growth Market Finland.
