Estonian firm to build modular nuclear reactor; major step towards becoming carbon neutral

Small Estonian firm Fermi Energia said on Monday it was raising capital to start the official planning process for a new generation small modular reactor (SMR) which would be one of the first in Europe and the first nuclear plant in Estonia.

Small Modular Reactors are a new class of nuclear reactors that are considerably smaller in size and power output than conventional nuclear power reactors. Given their portability and scalability, SMRs have a range of potential applications: from grid-scale units that can generate non-emitting reliable electricity and power remote communities, to smaller units suitable for heavy industry.

As with larger-scale nuclear generation facilities, SMRs do not emit greenhouse gasses, meaning they have significant potential to decarbonise electricity production and mitigate climate change.

According to the industry, SMRs have been engineered for safety. They contain fewer mechanical parts, and are designed to be installed underground with passive cooling systems.

The small EU member state of 1.3 million people has for decades generated most of its energy from burning oil shale.

“Estonia has set an ambitious goal to end electricity production from oil shale by 2035,” Fermi Chief Executive Kalev Kallemets told Reuters. “The reactor would solve this challenge for Estonia and is relevant for the wider region.”

Fermi aims to apply to the government to start the planning process in late 2021, with the process — which includes environmental, societal, economic and national security reviews — expected to take up to five years.

“This matches the timeframe of technology development as small modular reactor technology is expected to become available for deployment by 2028,” Kallemets said.

Fermi could then start construction in 2030 and the plant would be producing electricity in 2035, he said.

The company has so far raised 560,000 euros from private investors and US venture capital fund Last Energy VC. On Monday the firm said it seeks to raise €1 million through crowdfunding platform Funderbeam.