Apr 3, 2025
A collaboration agreement has been signed for the Estonian small modular reactor project.
Fermi Energia from Estonia and Samsung C&T Corporation Engineering & Construction Group from South Korea have entered into a collaboration agreement to work together on the installation of two BWRX-300 small modular reactors in Estonia.
The agreement, finalized in Seoul on April 1, emphasizes collaboration between Fermi Energia and Samsung C&T on critical project components. These include forming an Engineering, Procurement, and Construction (EPC) partnership, reviewing site constructability, estimating costs, and strategizing financing. The contract also designates Samsung C&T as a potential primary EPC contractor and an essential commercial ally in the Estonian small modular reactor (SMR) initiative.
This partnership builds on a memorandum of understanding signed by both companies in November 2024.
Fermi Energia and Samsung C&T will collaborate during the pre-Front-End Engineering Design (Pre-FEED) phase to define project terms and cost estimates. The Teaming Agreement also includes plans for a comprehensive FEED phase, which is essential for obtaining regulatory approval and moving forward with construction.
The companies aim to initiate full business operations by the latter half of this year, with an objective for the project to commence commercial operations in 2035.
"This collaboration goes beyond Estonia, as both organizations acknowledge the potential for SMR deployment throughout Northern Europe," stated Fermi Energia. "Through this alliance, Samsung C&T intends to take a significant role in at least 10 to 15 BWRX-300 reactor projects in the region, benefiting from economies of scale and reducing project risks."
"We will bolster our position as a global player in the SMR sector while successfully promoting Estonia's inaugural SMR project," commented Kim Jeong-eun, head of the nuclear power plant sales team at Samsung C&T.
"The signing of this agreement demonstrates our commitment to ensuring the economical and timely deployment of SMRs in Estonia," remarked Kalev Kallemets, CEO of Fermi Energia. "Nuclear technology is complex, and for a nation the size of Estonia, it can only be realized in partnership with trustworthy, democratic collaborators. South Korea is already an essential partner to Estonia in defense equipment production, and Samsung C&T's expertise in nuclear power and large-scale construction will be crucial for maintaining the schedule and budget for SMR deployment in Estonia and Northern Europe."
Fermi Energia was established by Estonian energy and nuclear specialists to advance the deployment of SMRs in Estonia. In July 2019, the company initiated a feasibility study on the suitability of SMRs for meeting Estonia's electricity demands and climate objectives post-2030, following a financial round with investors and shareholders.
In February 2023, the company chose the BWRX-300 SMR from GE Hitachi Nuclear Energy for possible deployment by the early 2030s. GEH's BWRX-300 design is a 300 MWe water-cooled SMR that uses natural circulation and possesses passive safety systems, drawing from the design and licensing framework of GEH's ESBWR boiling water reactor.
Earlier this year, Fermi Energia filed an application with Estonia's Ministry of Economic Affairs and Communications to commence the state spatial planning process for a 600 MW nuclear power facility. The municipal councils of Viru-Nigula and Lüganuse have formally agreed to engage in this spatial planning process, with decisions made in September 2023 and March 2024, respectively.
Fermi Energia anticipates submitting a construction permit request for the proposed facility in 2029, with construction expected to begin in 2031. The first of the two SMRs is scheduled to be operational by the second half of 2035.
In June of last year, the Estonian parliament, the Riigikogu, passed a resolution endorsing the adoption of nuclear energy in the nation, which set the stage for establishing the necessary legal and regulatory framework. This decision was founded on analyses conducted by the Nuclear Energy Working Group, which affirmed that integrating nuclear energy in Estonia was feasible.
The agreement, finalized in Seoul on April 1, emphasizes collaboration between Fermi Energia and Samsung C&T on critical project components. These include forming an Engineering, Procurement, and Construction (EPC) partnership, reviewing site constructability, estimating costs, and strategizing financing. The contract also designates Samsung C&T as a potential primary EPC contractor and an essential commercial ally in the Estonian small modular reactor (SMR) initiative.
This partnership builds on a memorandum of understanding signed by both companies in November 2024.
Fermi Energia and Samsung C&T will collaborate during the pre-Front-End Engineering Design (Pre-FEED) phase to define project terms and cost estimates. The Teaming Agreement also includes plans for a comprehensive FEED phase, which is essential for obtaining regulatory approval and moving forward with construction.
The companies aim to initiate full business operations by the latter half of this year, with an objective for the project to commence commercial operations in 2035.
"This collaboration goes beyond Estonia, as both organizations acknowledge the potential for SMR deployment throughout Northern Europe," stated Fermi Energia. "Through this alliance, Samsung C&T intends to take a significant role in at least 10 to 15 BWRX-300 reactor projects in the region, benefiting from economies of scale and reducing project risks."
"We will bolster our position as a global player in the SMR sector while successfully promoting Estonia's inaugural SMR project," commented Kim Jeong-eun, head of the nuclear power plant sales team at Samsung C&T.
"The signing of this agreement demonstrates our commitment to ensuring the economical and timely deployment of SMRs in Estonia," remarked Kalev Kallemets, CEO of Fermi Energia. "Nuclear technology is complex, and for a nation the size of Estonia, it can only be realized in partnership with trustworthy, democratic collaborators. South Korea is already an essential partner to Estonia in defense equipment production, and Samsung C&T's expertise in nuclear power and large-scale construction will be crucial for maintaining the schedule and budget for SMR deployment in Estonia and Northern Europe."
Fermi Energia was established by Estonian energy and nuclear specialists to advance the deployment of SMRs in Estonia. In July 2019, the company initiated a feasibility study on the suitability of SMRs for meeting Estonia's electricity demands and climate objectives post-2030, following a financial round with investors and shareholders.
In February 2023, the company chose the BWRX-300 SMR from GE Hitachi Nuclear Energy for possible deployment by the early 2030s. GEH's BWRX-300 design is a 300 MWe water-cooled SMR that uses natural circulation and possesses passive safety systems, drawing from the design and licensing framework of GEH's ESBWR boiling water reactor.
Earlier this year, Fermi Energia filed an application with Estonia's Ministry of Economic Affairs and Communications to commence the state spatial planning process for a 600 MW nuclear power facility. The municipal councils of Viru-Nigula and Lüganuse have formally agreed to engage in this spatial planning process, with decisions made in September 2023 and March 2024, respectively.
Fermi Energia anticipates submitting a construction permit request for the proposed facility in 2029, with construction expected to begin in 2031. The first of the two SMRs is scheduled to be operational by the second half of 2035.
In June of last year, the Estonian parliament, the Riigikogu, passed a resolution endorsing the adoption of nuclear energy in the nation, which set the stage for establishing the necessary legal and regulatory framework. This decision was founded on analyses conducted by the Nuclear Energy Working Group, which affirmed that integrating nuclear energy in Estonia was feasible.