France’s Blue Capsule Technology is designing a reactor that could help meet demand for industrial heat
The European Union is rolling out its first €1 billion auction to decarbonise industrial heat, but the exclusion of nuclear technologies isn’t stopping some ambitious atomic projects across the continent.
On 10 October 2025, the European Commission launched its first pilot auction for industrial heat decarbonisation under the Innovation Fund, geared towards renewable and electrified heat projects.
The initiative, part of the broader Clean Industrial Deal, marks the first time Brussels has treated process heat emissions as a standalone policy priority, ahead of the planned €100 billion Industrial Decarbonisation Bank in 2030.
The International Energy Agency, among others, has repeatedly flagged process heat as “the missing piece” in Europe’s decarbonisation puzzle. It notes that few low-carbon technologies can reliably (or competitively) deliver heat above 400°C – a threshold that’s critical for energy-intensive industries.
In terms of carbon emissions, this is a problem. According to the IEA, industrial heat accounts for 20% of global primary energy demand each year, with up to 89% of high-temperature demand (e.g., steel, cement, chemicals) still met by fossil fuels.
In Europe, more than 1,400 TWh/year of heat is consumed by industry, with at least 75% still sourced from imported gas, coal and oil.
For processes above 400°C, innovators are working on low-carbon solutions to address this growing market. But stable, on-site options are limited. Industry players are increasingly asking about nuclear.
One of the few European companies developing an option for this segment is France’s Blue Capsule Technology, the start-up designing a modular, high-temperature reactor (“HTR”).
Designed to produce high-grade heat, steam, and electricity if needed, Blue Capsule is the only European technology to offer all three “vectors” for high-temperature processes.
The company is targeting heat to 700°C, steam to 650°C, and 50 megawatts of electricity, all co-located with industry clusters, or “inside-the-fence" industrial users.
That includes industries such as alumina, cement, the soda ash and ammonia sectors, and even the production of hydrogen or synthetic fuels.
For that to happen, Blue Capsule must meet its objective of providing cost-competitive heat at €50 per megawatt hour for European markets – something the EU Emissions Trading Scheme (EU ETS) will make possible, says the company.
“Both natural gas and coal will carry additional carbon costs by 2035, which is when we intend to launch our first reactor,” says Blue Capsule president Edouard Hourcade.
“Industries can no longer cope with volatile fossil fuel prices and insecurity of supply. They need reliable solutions that run for decades.”
The company says it wants to see “European industry flourish again” and has been quietly boosting its partnerships.
“The French and European supply chains are crucial to the success of our project,” says the company’s chief technology officer Alexey Lokhov.
“Whether it’s a pilot line for TRISO fuel in France, or tie-ups with industrial end users, Blue Capsule is doing everything we can to anchor our project in Europe's industrial fabric.”
But the company also says its reactor could target markets outside the EU.
Reactor architect at Blue Capsule, Domnin Erard, says the choice of TRISO fuel at under 5% enrichment could be crucial for the company.
“It was a very deliberate choice for us. Low-enriched uranium (LEU) is used in the vast majority of the world’s nuclear power plants. Obviously, we hope that could facilitate licensing and export. But it’s not just about making the reactor exportable; we want everything in place for our first-of-a-kind unit. We’re not sure that would be possible if we chose HALEU.”
The company says that using robust TRISO fuel will enhance the safety of the reactor, which is even air-cooled and suited for arid sites with no water resources.
At its heart, however, the project is a European one.
But while France has gained decades of advancements in sodium-cooled technologies, and Europe (Germany in particular) has pioneered high-temperature reactors, it is countries like China, Japan and the United States that are developing both.
Blue Capsule says it wants to build a European solution that’s suited for industrial applications. One that combines the best of both technologies.
“We know that sodium coolant at atmospheric pressure takes away the need for pressurisation in the reactor. That's a plus point for safety, economics, and a supply chain that’s independent from water reactors,” explains president Edouard Hourcade.
“Allied with a good fuel choice and a clear target market, this makes for a safe, efficient nuclear system that’s competitive. That’s the point of our innovation. That’s why we think nuclear heat can be part of Europe’s decarbonisation drive.”
