STOCKHOLM--Swedish nuclear technology company Studsvik has selected GE Vernova Hitachi Nuclear Energy and Samsung C&T as strategic partners for a project that could see 1.2 gigawatts of new nuclear capacity developed in Sweden.

The partners will develop an initial project with four GE Vernova Hitachi BWRX-300 small modular nuclear reactors, with the first unit expected in operation in the mid-2030s.

The agreement comes as Sweden has pledged to expand its nuclear capacity, with the government implementing a series of reforms to usher in new nuclear power. Those include a financing model with state backed loans, pricing agreements and faster permitting processes.

Sweden currently has six nuclear reactors in operation across three plants, with an existing capacity of around 7 gigawatts. Under government plans, a further 2.5 gigawatts will be installed by 2035, rising to 10 gigawatts by 2045.

Studsvik said the site of the project is yet to be decided but will be chosen between two locations south of Stockholm--an existing Studsvik nuclear facility in Nykoping and a site in Valdemarsvik where the company recently filed an application for new nuclear facilities.

Studsvik will lead permitting, environmental impact assessments, site rights, community engagement and talks with the Swedish state. GE Vernova Hitachi leads reactor design, licensing support and cost estimation and acts as the design authority. Together with Samsung C&T, it forms the execution team.

South Korean investment firm DS Investment Partners will lead the investment and GE Vernova Financial Services participates in an advisory and financial structuring capacity.

A joint project company will be formed to support development, financing, construction, ownership and operation of the plants, with details to be finalized, Studsvik said.

Thursday's agreement is exclusive for a fixed period and doesn't constitute a final investment decision or authorization to construct, it added.

The consortium will begin work immediately, including commercial, technical, regulatory and financing activities.