Rolls-Royce SMR to Build Nuclear Reactors for Sweden

Following a rigorous selection process that started in 2022, UK engineering giant Rolls-Royce's nuclear division, Rolls-Royce SMR, won the contract to build nuclear reactors for Sweden.

As part of the deal, the group, selected by Videberg Kraft as its partner, will deliver three Small Modular Reactors (SMRs) to Sweden’s west coast, at the Värö Peninsula.

“The Videberg Project will build Sweden’s first new nuclear power plant in more than forty years, supporting industries and households in southern Sweden,” a press statement from Rolls-Royce said.

The partnership with utility Vattenfall and developer Kärnfull Next is seen as one of the most advanced opportunities for deployment outside of the UK.

In a statement, the UK government praised the deal, calling it an agreement that will "support thousands of skilled jobs, strengthen supply chains and deepen the UK-Sweden partnership".

Rolls-Royce did not disclose the value of the contract, but the UK government said the agreement marks "a major multibillion-pound export win for the UK and a breakthrough moment for British nuclear".

Rolls-Royce’s shares were trading up 1.8% at 10:00 CET on Tuesday.

The deal supports the British company’s efforts to strengthen its position in Europe, where it has been pursuing opportunities to become a leading developer, builder and supplier of SMRs.

Tufan Erginbilgic, CEO, Rolls-Royce plc, said: “Selection by Videberg Kraft reinforces the status of Rolls-Royce SMR as the only company with multiple contractual commitments to deliver SMR units in Europe."

The current announcement follows another deal in April this year, when Rolls-Royce SMR signed a contract with the Czech CEZ Group to advance work on the Czech Republic’s first Small Modular Reactor (SMR). The firm also sealed a deal with Great British Energy – Nuclear (GBE-N) for the design and delivery of the first small modular reactors (SMRs) in the UK.

SMRs in Europe

The European Commission considers small modular reactors (SMRs) to be a promising low-carbon technology that could help support the bloc's clean energy and energy security goals.

In order to remove regulatory barriers, the EU's SMR strategy was adopted in March 2026 to accelerate the development and deployment of the technology across Europe.

SMRs are smaller than conventional nuclear power plants, typically generating between 20 and 300 megawatts of electricity. At the upper end of that range, a reactor could produce around 7.2 million kilowatt-hours of electricity per day — enough to power hundreds of thousands of homes.

The International Energy Agency (IEA) estimates that more than 1,000 small modular reactors could be deployed worldwide by 2050 under a supportive policy scenario, requiring cumulative investment of around $670bn (€577bn).