Hormuz Strait closure boosts interest in Finnish small nuclear reactor

The closure of the Hormuz Strait has increased global interest in a Finnish small modular reactor (SMR) as countries seek alternatives to liquefied natural gas (LNG) from the Persian Gulf, reports Finnish broadcaster Yle.

South Korea has shown particular interest in the district heating reactor developed by Finnish company Steady Energy, which could replace expensive gas imports. The country relies heavily on LNG shipments from Persian Gulf nations like Qatar, but the Hormuz Strait closure has driven up prices and raised concerns over supply disruptions.

“Interest in our reactor in South Korea is strong because they primarily heat their district heating networks with LNG, which comes through the Hormuz Strait,” said Steady Energy CEO Tommi Nyman.

The company has already signed a cooperation agreement with South Korea’s Korea District Heating Corp. Meanwhile, Finland’s government is accelerating the construction of SMRs by expanding energy subsidies to include small nuclear projects.

Several Finnish cities, including Helsinki and Kuopio, have expressed preliminary interest in Steady Energy’s reactor. A test version is already being built at the former Salmisaari coal plant in Helsinki.

Safety testing begins in Lappeenranta

The reactor’s safety systems will be tested at LUT University in Lappeenranta, where a scaled-down model of the LDR-50 reactor is under construction. The project has received over €2 million in EU funding for testing two European SMR designs, including Steady Energy’s.

LUT researcher Joonas Telkkä explained that SMR safety relies on passive systems that do not require active intervention. The goal is to have the first operational reactor by the early 2030s.