The European Investment Bank is investing up to €40 million in Finnish nuclear-technology company Steady Energy to support development of a heat-only small modular reactor.
The financing is part of a wider package involving institutional, strategic and retail investors, the EIB informed on Tuesday.
It is the EIB’s first investment in small modular reactor technology.
Steady Energy is developing a 50 MW reactor concept designed to supply low-carbon heat to district heating networks — systems that distribute heat through pipes to buildings such as homes and offices.
The bank said the funding will support research and development, testing and licensing work in Finland between 2026 and 2028 as the company moves towards its first commercial deployment.
Steady Energy was spun out from Finland’s Technical Research Centre VTT in 2023 and is building a non-nuclear pilot facility in Helsinki to test key safety systems and support licensing with the national regulator.
Heat-first reactor design
The reactor design uses water as a moderator and coolant — a set-up widely used in existing nuclear reactors — but differs from conventional nuclear power plants because it is designed to produce heat as its main output rather than generating electricity, the EIB said.
“Over 40 percent of final energy demand is heat. Most of the heat we consume comes from fossil fuels,” Steady Energy chief executive Tommi Nyman stated.
The EIB financing is structured as a senior unsecured convertible loan, meaning it is a loan that can be converted into shares if Steady Energy becomes listed.
The operation is backed by the EU’s InvestEU programme, which supports investment in innovation and the green transition.
