Finland-based startup Steady Energy has secured an up to 40 million euros ($46.14 million) financing from the European Investment Bank for its small modular reactor technology, the EIB said on Tuesday.
The investment is part of a wider financing, also including institutional, strategic and retail investors, which will help accelerate Steady Energy's development of a heat-only SMR, according to a statement.
Steady Energy's 50-megawatt reactor, which builds upon the existing light water reactor technology, is meant to supply cost-effective low-carbon heat to district heating networks.
"The investment will support Steady Energy's research and development, testing and licensing activities as the company advances towards its first commercial deployment. The funded activities will be carried out in Finland between 2026 and 2028," the statement said.
Spun off from the Technical Research Centre of Finland VTT in 2023, Steady Energy is constructing a non-nuclear pilot facility in Helsinki intended to be used to test key safety systems and support the licensing process with the national regulator.
Finnish company 3North Partners and Steady Energy have disclosed plans to merge and list the combined company on Nasdaq First North Growth Market Finland, the statement added.
The EIB investment is in the form of a senior unsecured convertible loan, which provides Steady Energy with long-term patient capital and EIB the option to convert its investment into listed shares.
It is backed by the European Union's InvestEU programme meant for investments in innovation and the green transition, the statement said.