The European Investment Bank has agreed a senior unsecured convertible loan of up to €40 million for Finnish nuclear-technology company Steady Energy, the bank’s first financing for small modular reactor technology. The InvestEU-backed facility is structured in two tranches of up to €30 million and up to €10 million and carries zero interest, with a 20-year maturity unless earlier repaid or converted.
Proceeds will fund research and development, testing and licensing of Steady Energy’s heat-only LDR-50 reactor in Finland between 2026 and 2028, ahead of first commercial deployment. The EIB described the instrument as quasi-equity, giving it the option to convert into listed shares.
Steady Energy, a 2023 spin-out from the Technical Research Centre of Finland VTT, is developing a 50 MW thermal SMR designed to supply low-carbon heat to district heating networks rather than generate electricity. The company is building a non-nuclear pilot facility in Helsinki to test safety systems and support licensing with the national regulator.
The loan sits alongside a contemplated combination of Steady Energy with Finnish investment vehicle 3North Partners, which plans an IPO and listing on Nasdaq First North Growth Market Finland under the Steady Energy name.
Under the finance contract disclosed with that package, 3North is the borrower, Steady Energy is guarantor, and the EIB may convert into series A shares of the combined company. Separate equity commitments of about €69.8 million and a retail IPO of up to €5 million are also planned.
Tommi Nyman, Chief Executive of Steady Energy, said the EIB support helps the company move towards its first concrete projects. Karl Nehammer, EIB Group Vice-President, said the bank is looking to back European SMR pioneers as part of a more secure energy mix alongside renewables.