Keravan Energia, a Finnish energy utility, has signed an agreement with technology company Steady Energy Oy to develop nuclear-powered district heating. This marks Kerava as the third Finnish city to consider small modular reactor (SMR) technology for heating purposes, following earlier initiatives in Kuopio and Helsinki. Should the project proceed to investment, construction of the SMR could begin as early as 2029, with district heating operations anticipated to start in 2032.
Finland is rapidly moving towards being world’s leading SMR nation as Steady Energy Oy partners with Keravan Energia to explore SMR technology. Kerava is Finland’s third city to prepares for nuclear district heating. In Eastern Finland’s Kuopio nuclear heating is already in pre-investment phase, with zoning and environmental permitting starting soon.
Keravan Energia aims to be carbon neutral by 2030, and this partnership with Steady Energy underscores their commitment to reduce emissions in a cost-effective manner while ensuring reliable energy supply. “We have a strategic goal to reach carbon neutrality by 2030. To achieve this, we need to minimize our emissions affordably and ensure that our city’s energy supply remains secure in all circumstances,” said Jussi Lehto, CEO of Keravan Energia Ltd.
The agreement marks the first step towards evaluating the feasibility of deploying SMR technology in Kerava. The next phase includes assessing site suitability, licensing, zoning, and the technical and economic viability of a nuclear heat plant tailored to Kerava’s energy needs. “Think of district heating as a large system of hot water pipes, where heat flows to radiators from a giant boiler, where the heat source now is biomass and peat. While green electricity is a good backup, we need more stable solutions to counter electricity price volatility. A dedicated nuclear heat source, like Steady Energy’s reactor, is a very viable option,” Keravan Energia CEO Jussi Lehto added.
“Keravan Energia has long been at the forefront of the energy transition. We’re thrilled to bring Steady Energy’s SMR technology into its growing portfolio of green solutions,” said Tommi Nyman, CEO of Steady Energy.
Across Europe, energy companies face the challenge of replacing hundreds of aging heat plants that are nearing the end of their lifecycle. With around 3,000 heat plants needing renewal, a significant shift to zero-emission solutions is crucial to maintain global habitability. “The climate crisis won’t abate until we heat our homes cleanly. Globally, over 80 percent of energy still comes from fossil sources, with nearly half of that going towards heating and cooling. Finnish energy companies are taking the lead in moving away from combustion-based energy altogether,” Steady Energy CEO Tommi Nyman said.
World’s simplest nuclear plant
Steady Energy has developed the LDR-50, a 50 MW small modular reactor that can be deployed within seven years, including licensing, at a cost of €100 million. Specifically designed to produce heat up to 150 °C, the LDR-50 is optimized for district heating, industrial steam production, and desalination projects.
CEO Tommi Nyman emphasized the simplicity of the system: “Heating water to 150 degrees accounts for 10 percent of global emissions. Our reactor focuses solely on this task, making it possibly the world’s simplest commercial nuclear reactor. This design ensures that SMR-produced heat is cost-competitive compared to other alternatives.”
The LDR-50 reactor is the size of a standard shipping container and has been designed to be built underground. The reactor offers a nearly 100 percent efficiency and is cooled and moderated by light water at a low operational temperatures and pressures, making it inherently safe and more cost-effective than conventional nuclear energy.
Steady Energy’s initial market focus is Finland and wider Europe, but the company also envisions its reactors addressing industrial steam and desalination needs globally. “Each reactor costs €100 million, and Europe alone could quickly need 300 of these units. There is a need for another 300 if we are to decarbonize desalination as well as industrial heat production.”
Steady Energy will start constructing a pilot plant in Finland next year, where its functionality and Steady Energy’s project management capabilities will be tested. The pilot, differing from an actual reactor only in that it will use an electric heater instead of nuclear fuel, will pave the way for further installations. Possible locations include Helsinki, Kuopio, Espoo, and Lahti.
For further information:
Tommi Nyman, CEO, Steady Energy Oy
Interview Requests: Lauri Muranen, Director, +358407076637, lauri.muranen@steadyenergy.fi