The European Commission (EC) has approved a €2bn investment by the Dutch government in the PALLAS project to support the production of radioisotopes for medical purposes.

EC approved the investment under its EU State aid rules, following its 2013 approval of the aid for the preparatory phase of the project.

The PALLAS project involves the construction of a nuclear reactor and a nuclear health centre in Petten, the Netherlands.

Planned to begin operations in the early 2030s, the new nuclear reactor will replace the existing high flux reactor (HFR), which has been producing medical isotopes since 1961.

The PALLAS nuclear health centre will process the medical isotopes produced by the reactor into radiochemicals, which are further processed into radiopharmaceuticals.

EC said that the reactor and the health centre will also be used for research, development, and innovation activities both in the field of nuclear medicine and nuclear power technology.

European Commission executive vice-president, competition policy in-charge Margrethe Vestager said: “This €2bn 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.

“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 Foundation Preparation Pallas-reactor, and Foundation Nuclear Research and Consultancy Group (NRG), will merge in the next quarter, to create a company (NewCo).

NewCo will receive aid in the form of loans and equity for a total amount of around €2bn to a newly established, that will build and operate the reactor and the nuclear health centre.

The new merged company will be converted into a private company, with the Netherlands’ Ministry of Health, Welfare and Sport as the sole shareholder.

The move is anticipated to strengthen the security of the medical isotope supply for nuclear medicine and ensure faster access to advanced cancer treatments for patients.

PALLAS programme director Peter Dijk said: “We are extremely pleased with this good news. It means that we are now entering the next phase of the construction project: the construction of the reactor and associated buildings.

“We are currently working together with the contractor FCC Construcción on the preparations for this construction phase.

“The preparatory phase for the realisation of the construction pit and its foundation is nearing its end, and with the approval of the European Commission, we can go forward with the PALLAS Programme.”