The European Commission has approved a €2 billion ($2.16 billion) Dutch initiative to support the PALLAS project, aimed at producing medical radioisotopes for cancer diagnosis and treatment.

The Netherlands notified the Commission about its plan, which involves constructing a reactor and a nuclear health center in Petten, North Holland. The new reactor will replace the existing high flux reactor, a leading producer of medical isotopes since 1961, and is expected to be operational in the early 2030s. The nuclear health center will process the isotopes into radiochemicals, further transformed into radiopharmaceuticals for diagnosing and treating diseases, including cancer.

Additionally, the reactor and health center will facilitate research, development, and innovation in nuclear medicine and nuclear power technology.

"This €2 billion measure enables the Netherlands to support a strategic project contributing to the securing of supply of essential medicines and to the development of breakthrough innovation in the field of nuclear technology to the benefit of European citizens," said Margrethe Vestager, executive vice president in charge of competition policy at the EC. "Our assessment has confirmed that the measures proposed by the Dutch authorities will limit any possible distortions of competition triggered by the public support."

The €2 billion aid will be provided as loans and equity to a newly established company, NewCo, which will oversee the construction and operation of the reactor and health center. NewCo results from the merger of the PALLAS Foundation, created by the Netherlands in 2013, and the Nuclear Research and Consultancy Group, which operates the current high flux reactor.

The Commission assessed the measure under EU State aid rules and concluded it is necessary and appropriate, as the PALLAS project would not proceed without public support. The aid is proportionate, limited to the minimum necessary based on a funding gap. The Netherlands has implemented safeguards to ensure the aid's limited impact on competition and trade. Specifically, NewCo will price its products to cover all production and commercialization costs, adhering to the Full Cost Recovery principle monitored by an independent trustee.

"This is good news for us, for the Netherlands, but especially for many patients with life-threatening diseases, such as cancer and cardiovascular diseases, who depend on medical isotopes," said Bertholt Leeftink, CEO NRG PALLAS. "With the arrival of the new PALLAS-reactor, the production of medical isotopes and the innovation of new applications for the treatment of, among other diseases, cancer will be guaranteed."

This decision follows a 2013 approval for aid to the project's preparatory phase.

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