Eneco and ULC-Energy sign letter of intent on potential future power offtake from a small modular nuclear reactor

Eneco and ULC-Energy have signed a letter of intent regarding a possible future partial offtake by Eneco of CO2-free electricity from a small modular nuclear reactor (Small Modular Reactor, SMR) to be developed by ULC-Energy. The agreement sets out that Eneco and ULC-Energy will work together on an exploratory basis to determine whether a future power purchase agreement is commercially and operationally feasible. Subject to all conditions being met, any offtake could start no earlier than 2035.

Eneco has always maintained the position that no energy source can be excluded from the energy transition, including nuclear energy. It can be a relevant building block in the transition to fully CO2-free electricity generation. At the same time, Eneco sees no role for itself in the development, construction, operation or management of nuclear energy, in particular because we lack the expertise and resources required. The agreement concerns only an exploration of a potential offtake relationship. Eneco is not taking an equity stake and does not assume development or construction risk.

Bart Zomer, responsible for energy procurement and flexible sources at Eneco: ‘An affordable, reliable and fully CO2-free energy system benefits from a diverse mix of CO2-free sources. We will continue to fully commit to wind and solar, while controllable CO2-free generation can also play a role. That is why we are exploring whether electricity from a future SMR could be an addition to our diversified procurement portfolio’.

Dirk Rabelink, CEO of ULC-Energy: ‘We are pleased with this letter of intent with Eneco. Developing a nuclear energy project is a long-term process in which stable, complementary and long-term partnerships are crucial. Our collaboration focuses on the offtake of electricity. The fact that a major Dutch energy supplier is seriously exploring this option is an important signal for the broader feasibility of SMRs in the Netherlands’.

ULC-Energy develops SMR projects in the Netherlands based on the Rolls-Royce SMR — a 470 MWe pressurized water reactor based on proven technology, with up to 90% of construction activity taking place in factory conditions. One Rolls-Royce SMR provides approximately 4 TWh of CO2-free electricity per year. That is equivalent to around 3% of current annual electricity demand in the Netherlands.