The European Commission Approves €300 Million State Aid for Nuward
Nuward, a subsidiary of EDF that develops the small modular reactor of the same name, has announced the European Commission’s approval of €300 million in state aid to support the development of its SMR.
The European Union regulates state aid in accordance with Article 107 of the Treaty on the Functioning of the EU. It was in this context that the European Commission reviewed the €300 million state aid intended for Nuward, a 100% subsidiary of EDF.
On April 26, 2024, after assessment, the European Commission authorized the aid intended to support Nuward “in the research and development of small modular nuclear reactors (‘SMRs’).” Furthermore, the Commission declared that “the measure will contribute to the achievement of the strategic objectives of the European industrial strategy and the European Green Deal.” This will take the form of a direct grant with a maximum amount of €300 million and will cover the R&D project until early 2027[1].
Supporting the Development of Nuward
Nuward is an SMR plant with a capacity of 340 MWe, consisting of two 170 MWe pressurized water reactors housed in a single building, thus allowing for the use of shared equipment. Beyond electricity production, the design is intended to meet other needs (hydrogen production, urban heating, sea water desalination). This financial support “will help Nuward to size the modules and components of the SMRs and to validate their integration into these using digital simulators and laboratory tests,” the Commission detailed. Nuward will also conduct industrialization studies related to modular design and mass production of SMRs. Finally, the measure will also assist Nuward in preparing the safety demonstrations required for the project’s approval by national nuclear safety authorities. In its conclusions, the European Commission considers that “the aid has positive effects that outweigh any potential distortion of competition and trade within the EU.”
European Support for SMRs
In the document presenting its conclusions, the Commission recalls its positions on the subject of small modular reactors. “The Commission has recognized the potential contribution of SMRs to achieving the energy and climate goals of the European Green Deal in its February 2024 recommendation on the emission reduction target for 2040, which emphasized that all low- or zero-carbon solutions would be necessary to achieve the EU’s climate neutrality goal by 2050.” Additionally, on February 9, 2024, the European Commission opened applications to join the European Industrial Alliance on Small Modular Reactors (SMRs) and indicated that it would continue to work on this initiative.
“In addition to the €50 million already approved in 2022, the European Commission has just given the green light to funding of €300 million from the French government. This substantial measure will support the Basic Design phase of our SMR technology. France, as well as other European countries involved in discussions, are keenly interested in the development of NUWARD SMR,” Nuward celebrated.■