Keravan Energia, a Finnish energy utility, has signed an agreement with technology company Steady Energy 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.
Keravan Energia aims to be carbon neutral by 2030, and this partnership with Steady Energy is said to underscore its commitment to reduce emissions in a cost-effective manner while ensuring reliable energy supply.
Jussi Lehto, chief executive of Keravan Energia, said: “We have a strategic goal to reach carbon neutrality by 2030. To achieve this, we need to minimise our emissions affordably and ensure that our city’s energy supply remains secure in all circumstances.”
The agreement marked the first step towards evaluating the feasibility of deploying SMR technology in Kerava. The next phase will include assessing site suitability, licensing, zoning, and the technical and economic viability of a nuclear heat plant tailored to Kerava’s energy needs.
Lehto added: “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.”
Tommi Nyman, chief executive of Steady Energy, said: “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.”
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.
Nyman added: “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 has developed the LDR-50, a 50 MW small modular reactor that can be deployed within seven years, including licensing, at a cost of €100m. Specifically designed to produce heat up to 150C, the LDR-50 is optimized for district heating, industrial steam production, and desalination projects.
Nyman said: “Heating water to 150 degrees accounts for 10% 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 is said to offer a nearly 100% efficiency and is cooled and moderated by light water at a low operational temperatures and pressures; claimed to make it “inherently safe” and more cost-effective than conventional nuclear energy.
Steady Energy says it will start constructing a pilot plant in Finland next year, where its functionality and the company’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.
Credit: Steady Energy
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