European Commission Approves €2 Billion Dutch State Aid for Pallas Reactor

The European Commission has given the green light to the Dutch government's €2 billion investment in the construction of the new Pallas research reactor in Petten, Netherlands. This significant funding will support both the reactor and a nuclear health center at the Energy & Health Campus in Petten.

The Pallas reactor will replace the current High Flux Reactor (HFR), which has been operational since 1960. Initially used for nuclear materials testing, the HFR has shifted its focus to fundamental research and the production of medical radioisotopes. Managed by the Nuclear Research and Consultancy Group (NRG) for the European Union's Joint Research Centre, the HFR supplies approximately 60% of Europe’s and 30% of the world’s medical radioactive sources.

Designed as a "tank-in-pool" reactor, Pallas will have a thermal power of around 55 MW, offering more efficient and effective neutron flux deployment compared to the HFR. In addition to isotope production, the Pallas reactor and the associated health center will facilitate research, development, and innovation in nuclear medicine and nuclear power technology.

The Dutch government has outlined conditions for the construction to proceed: no objections from the Dutch parliament regarding the establishment of a new state-owned company and approval from the European Commission for the public investment.

Funding will be provided as loans and equity amounting to €2 billion to a new company (NewCo) formed from the merger of the Foundation Preparation Pallas-reactor, established in 2013, and NRG. The European Commission's assessment confirmed the necessity, appropriateness, and proportionality of the measure, ensuring minimal impact on competition and trade.

Margrethe Vestager, the European Commission’s Executive Vice-President in charge of competition policy, stated, "This €2 billion measure enables the Netherlands to support a strategic project that secures the supply of essential medicines and fosters innovation in nuclear technology, benefiting European citizens."

This approval follows a 2013 Commission decision supporting the preparatory phase of the Pallas project. NRG-Pallas CEO Bertholt Leeftink emphasized the importance of this development for patients with severe illnesses like cancer and cardiovascular diseases, who rely on medical isotopes.

The Foundation Preparation Pallas-reactor applied for a construction and operation permit from the Authority for Nuclear Safety and Radiation Protection (ANVS) in June 2022, receiving the construction license in February 2023. Preparatory work commenced in May 2023.

Peter Dijk, Pallas Programme Director, expressed his satisfaction with the approval, noting that the project is moving into the construction phase with ongoing preparations by the contractor FCC Construcción.

The Foundation Preparation Pallas-reactor plans to merge with NRG next quarter, transforming into a capital company with the Ministry of Health, Welfare and Sport as the sole shareholder.

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(Image: Pallas)