EIB makes first small nuclear reactor investment with €40m backing for Finnish start-up

Steady Energy is developing a 50MW nuclear reactor designed to heat cities rather than generate electricity, with the EU bank financing research, testing and licensing ahead of its first commercial deployment

The European Investment Bank (EIB) is making its first investment in small modular reactor technology, providing up to €40m to a Finnish company developing nuclear reactors specifically to heat homes and businesses.

Steady Energy is developing a 50MW small modular reactor, or SMR, designed to feed heat directly into district heating networks rather than generate electricity.

The EIB financing will support research and development, testing and licensing in Finland between 2026 and 2028 as the company works towards its first commercial deployment.

The reactor is based on light-water technology already widely used in existing nuclear plants, but operates at lower pressure and has a simpler design because it is intended to produce heat rather than electricity.

Steady Energy says the design can therefore use a larger proportion of the reactor’s thermal output while requiring fewer systems, with the reactor also designed to be built underground to enhance safety and security.

The company, which was spun out of Finland’s Technical Research Centre VTT in 2023, is building a non-nuclear pilot facility in Helsinki to test key safety systems and support the licensing process with Finland’s nuclear regulator.

The €40m EIB commitment forms part of a wider financing package involving institutional, strategic and retail investors and will take the form of a senior unsecured convertible loan. The structure gives the EIB the option of converting its investment into listed shares.

The financing is also backed by the EU’s InvestEU programme and comes as the European Commission seeks to bring Europe’s first small and advanced modular reactors online by the early 2030s.

Karl Nehammer, EIB Group’s vice-president, said: “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 chief executive Tommi Nyman said: “Over 40 percent 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.

“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.”

READ MORE: Landmark UK nuclear deal to cut reliance on foreign energy after Middle East tensions. With the war in the Middle East again exposing Britain’s vulnerability to fossil-fuel shocks, the government says it will begin work on the UK’s first small modular nuclear reactors as part of its push for more secure homegrown power. 

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_{Main image: A visualisation of Steady Energy’s LDR-50 small modular reactor, which is designed to supply 50MW of heat to district heating networks. Image: Steady Energy}