Rolls-Royce SMR, the nuclear division of the British engineering group, has secured a contract to deliver three small modular reactors (SMRs) to Sweden, marking a significant step in the company's European expansion. The agreement, announced on Tuesday, was awarded by Videberg Kraft following a competitive selection process that began in 2022.
The reactors will be built on the Värö Peninsula, on Sweden's west coast, as part of the Videberg Project. According to a statement from Rolls-Royce, this will be "Sweden’s first new nuclear power plant in more than forty years," providing electricity to industries and households in the southern part of the country.
The UK government hailed the deal as a "major multibillion-pound export win" that will "support thousands of skilled jobs, strengthen supply chains and deepen the UK-Sweden partnership." While Rolls-Royce did not disclose the exact value of the contract, the government described it as a breakthrough moment for British nuclear technology abroad.
Strategic European Push
This contract is part of Rolls-Royce's broader strategy to become a leading developer and supplier of SMRs across Europe. The company has already signed a deal with the Czech CEZ Group in April to advance work on the Czech Republic's first SMR, and it has an agreement with Great British Energy – Nuclear for the design and delivery of the first SMRs in the UK.
Tufan Erginbilgic, CEO of 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 company's shares rose 1.8% on Tuesday morning following the announcement.
The partnership with Swedish utility Vattenfall and developer Kärnfull Next is considered one of the most advanced SMR deployment opportunities outside the UK. The project aligns with Sweden's efforts to boost low-carbon energy production and reduce reliance on fossil fuels.
SMRs and Europe's Energy Goals
The European Commission views small modular reactors as a promising low-carbon technology that can support the bloc's clean energy and energy security objectives. In March 2026, the EU adopted an SMR strategy aimed at removing regulatory barriers and accelerating deployment across member states.
SMRs are smaller than conventional nuclear plants, typically generating between 20 and 300 megawatts of electricity. A reactor at the upper end of that range could produce around 7.2 million kilowatt-hours per day, enough to power hundreds of thousands of homes. The International Energy Agency estimates that more than 1,000 SMRs could be deployed globally by 2050 under supportive policies, requiring cumulative investment of roughly $670 billion (€577 billion).
This deal also comes amid broader European discussions on energy independence and nuclear power. While some countries, like Germany, have phased out nuclear energy, others, including Sweden, the Czech Republic, and Poland, are investing in new capacity. The EU's SMR strategy aims to harmonize safety standards and streamline licensing, making it easier for projects like the Videberg Project to move forward.
For Rolls-Royce, the Swedish contract is a vote of confidence in its SMR technology and a foothold in a market that could see further expansion. As Europe seeks to decarbonize its energy mix, small modular reactors are increasingly seen as a flexible and scalable option, complementing renewables and traditional nuclear plants.
