Nuclear energy firm newcleo, Tosto team up on lead-cooled fast reactors

MILAN (Reuters) - Nuclear company newcleo has signed a deal with Tosto Group to help develop newcleo's projected small modular lead-cooled fast reactors (LFR), the two firms said in a joint statement on Wednesday.

Under the rolling long-term contract, newcleo and Tosto Group, a provider of large components and pressure equipment in the chemicals and energy sectors, will team up on several projects including the fabrication and installation of the reactors, they said.

"The partnership will be further strengthened by a work for equity mechanism that will allow the Tosto Group to fully invest in newcleo," the companies added.

London-based newcleo is developing small modular reactors which will produce energy from mixed oxide fuels resulting from the processing of recycling spent fuel from nuclear power plants.

It plans to deliver a 30 megawatt electric (MWe) lead-cooled fast reactor demonstrator to be deployed in France by 2030, followed by a 200 MWe commercial unit.

"They bring strong and proven expertise to ensure we are set up for the best manufacturing for our large reactor components," newcleo Chairman and CEO Stefano Buono said in the statement, referring to Tosto, which has operations in Italy and Romania.

Italy banned nuclear energy after it was rejected in a national referendum in 1987 and another in 2011.

(Reporting by Federico Maccioni; Editing by Keith Weir)