Rolls-Royce has secured a multi-billion-pound contract to provide three small modular reactors (SMRs) to Swedish state-owned power company Vattenfall, marking a significant development in the expansion of nuclear energy in Sweden. Each reactor is designed to generate 470 megawatts, collectively supplying an amount of electricity equivalent to approximately 6 percent of Sweden's annual consumption.

The decision follows the passage of legislation by the Swedish parliament last year to fund a new generation of nuclear reactors—the first to be constructed in the country in over four decades. Swedish authorities have positioned the reactors as crucial for ensuring energy security and meeting the nation’s target of net zero carbon emissions by 2045. The initial reactor is anticipated to commence operations in the mid-2030s.

Chris Cholerton, chief executive of Rolls-Royce SMR, described the selection as a “strong endorsement” of the company’s standardized fleet approach, emphasizing growing market confidence in their technology. The contract places Rolls-Royce ahead of competitors including the US firm GE Vernova, which had also been considered for the project.

This deal aligns with broader efforts by Rolls-Royce to advance SMR technology internationally. In the United Kingdom, the firm was chosen by Great British Nuclear to develop the country’s first SMRs at the Wylfa site in north Wales. The UK government has committed £2.6 billion toward SMR development during the current parliamentary term, with £599 million pledged by the National Wealth Fund to support these projects. The first UK SMR is also expected to be operational no earlier than 2035.

Advocates of SMRs highlight their potential to be manufactured in factories, allowing for quicker, more cost-effective deployment compared to traditional large-scale reactors. Their ability to provide stable baseload power complements the increasing integration of intermittent renewable energy sources such as wind and solar.

Beyond Sweden and the UK, Rolls-Royce is collaborating with Czech nuclear engineering company Skoda JS to deliver SMR units for the Czech Republic, reflecting the company's expanding footprint in the European nuclear sector.

Peter Kyle, the UK secretary of state for business and trade, called the agreement a “major vote of confidence in British innovation and our nuclear industry,” stating that the UK is positioned “at the heart of the European nuclear renaissance” alongside partners like Sweden.

Following the announcement, Rolls-Royce’s shares rose by 3.8 percent, closing at £13.58.