Financing first phase – loan by the State
For the preparatory phase, the government (the Ministry of Economic Affairs & Climate and Province of Noord-Holland) has provided a loan of € 80 million. With this loan, the Foundation Preparation Pallas-reactor can make a safe, efficient, and sustainable design possible, provide the required permits, and establish a solid business case for finding private investors for the second phase. The current government funding will be sufficient until the beginning of 2020.
The second phase – private financing
The second phase will be financed by private companies or institutions. In total, PALLAS has held dozens of talks with investors. Multiple talks were held with certain investors due to their serious interest in this opportunity. It is an opportunity that is, without exception, regarded as unique; after all, this will be the first privately financed nuclear reactor for the production of isotopes in the world.
The possible risks of investing in the PALLAS-reactor were also discussed during the talks. As long as no permit has been granted for the construction of the reactor, many investors are still hesitant, which was expected. They cannot invest until they are sure that the permit to build PALLAS is in place. Any investment decision is expected to have this as a precondition.
Another risk for investors is the relatively long payback period, as the PALLAS-reactor will not be operational until 2025. The fact that PALLAS will be the first fully privately funded reactor makes some investors more careful, as there is no comparable experience in the private sector. Empowered by all the talks with investors, the PALLAS-organisation is convinced that financing for the nuclear reactor will be met.
In 2019 there will be clarity about the continuation of the financing.