By Anne Kauranen
HELSINKI (Reuters) -Finnish utility Fortum is looking at several potential sites in Finland and Sweden to build nuclear power plants with small or large-scale reactors, it said on Monday.
After relinquishing ownership of Germany's Uniper in 2022, Fortum wants to focus on the Nordics and is conducting a review of nuclear and heat generation capacity in Finland and Sweden.
In Finland, Fortum named its existing Loviisa nuclear site and a location near stainless steel producer Outokumpu's site in Tornio as possibilities, as well as nuclear technology company Studsvik's site outside Nykoping in Sweden.
"They are definitely on the list ... We are also looking at the possibility of completely new sites for the long term," Laurent Leveugle, Fortum's vice president for new nuclear, told Reuters.
Leveugle said Fortum will continue to evaluate the feasibility of small modular reactors (SMRs) and conventional large-scale facilities as part of its review.
The company believes that the green transition from fossil fuels could double Nordic power demand to almost 800 terawatt hours (TWh) a year by 2050, from less than 400 TWh in 2020.
A major advantage of nuclear power would be that it can provide a base load that stabilises the grid and power prices, it said, pointing out that wind and solar power varies with daylight and weather conditions.
Fortum is watching closely the rapid progress that suppliers are making in SMR development, including Canadian utility Ontario Power Generation's new Darlington site, which Leveugle described as probably the most advanced globally.
Fortum is unlikely to embark on a first-of-a-kind facility, Leveugle added.
Leveugle said a key lesson from the lengthy construction of Finland's Olkiluoto 3 reactor, which took nearly 20 years to finish and in which Fortum holds a 25% stake, is that design must be ready before construction can begin.
Fortum is exploring the nuclear possibilities with partners that include Britain's Rolls-Royce (LON:RR), French group EDF (EPA:EDF), Sweden's Karnfull Next and Finnish company Helen.
It has also initiated a pre-licensing dialogue with Finland's nuclear safety authority STUK to obtain feedback on new design features, it said.