Wednesday, 2 April 2025
Under the teaming agreement – signed in Seoul on 1 April – the cooperation between Fermi Energia and Samsung C&T will focus on key aspects of the project, including the formation of an Engineering, Procurement, and Construction (EPC) partnership, site constructability review, cost estimation, and financing strategies. The agreement also positions Samsung C&T as a potential EPC Prime Contractor and key commercial partner in the Estonian small modular reactor (SMR) project.
This collaboration builds upon a memorandum of understanding signed between the two companies in November 2024.
As part of the agreement, Fermi Energia and Samsung C&T will work together during the pre-Front-End Engineering Design (Pre-FEED) phase to establish project terms and budget estimates. The Teaming Agreement also outlines plans for a full FEED phase, setting the stage for the regulatory approval and construction process.
The two companies plan to begin full-scale business procedures as early as the second half of this year, and the project aims to be commercially operated in 2035.
“The cooperation extends beyond Estonia, as both parties recognise the broader potential of SMR deployment across Northern Europe,” Fermi Energia said. “Through this partnership, Samsung C&T aims to play a key role in at least 10–15 BWRX-300 reactor projects across the region, leveraging economies of scale and minimising project risks.”
“We will strengthen our position as a global SMR player along with the successful promotion of Estonia’s first SMR project,” said Kim Jeong-eun, head of the nuclear power plant sales team at Samsung C&T.
“The signing of this teaming agreement reflects our commitment to preparing for a cost-effective and timely deployment of SMRs in Estonia,” said Fermi Energia CEO Kalev Kallemets. “Nuclear energy is not a simple technology, and for a country of Estonia’s size, it can only be implemented in cooperation with reliable, democratic partners. South Korea is already an important partner for Estonia in defence equipment manufacturing, and Samsung C&T’s experience in nuclear energy and large-scale power construction will be essential for ensuring SMR deployment in Estonia and Northern Europe stays on schedule and within budget.”
A visualisation of a two unit BWRX-300 power plant (Image: Fermi Energia)
Fermi Energia was founded by Estonian energy and nuclear energy professionals to develop deployment of SMRs in Estonia. In July 2019, the company launched a feasibility study on the suitability of SMRs for Estonia’s electricity supply and climate goals beyond 2030, following a financing round from investors and shareholders.
In February 2023, the company selected GE Hitachi Nuclear Energy’s BWRX-300 SMR for potential deployment by the early 2030s. GEH’s BWRX-300 design is a 300 MWe water-cooled, natural circulation SMR with passive safety systems that leverages the design and licensing basis of GEH’s ESBWR boiling water reactor.
In January this year, Fermi Energia submitted an application to Estonia’s Ministry of Economic Affairs and Communications to begin the state spatial planning process for a 600 MW nuclear power plant. The municipal councils of Viru-Nigula and Lüganuse have formally agreed to participate in the spatial planning process, with decisions made in September 2023 and March 2024, respectively.
Fermi Energia expects to submit a construction permit application for the proposed plant in 2029, with construction targeted to begin in 2031. The first of two SMRs is set to be operational by the second half of 2035.
The Estonian parliament – the Riigikogu – passed a resolution in June last year supporting the adoption of nuclear energy in the country, paving the way for the creation of the necessary legal and regulatory framework. The parliament based its decision on analysis conducted by the Nuclear Energy Working Group, which concluded that the adoption of nuclear energy in Estonia was feasible.
