EUV has long been hailed as the next generation lithography technology. Its adoption into high volume manufacturing (HVM), however, has been delayed several technology nodes due to technical issues, many of which can be attributed to the EUV source performance. Today’s EUV lithography scanners are powered by laser produce plasma (LPP) sources. They have issues with power scaling beyond 300 W, reliability and contamination. Free Electron Lasers (FELs) have been considered as an alternative EUV source. Advantages of accelerator based sources are the maturity of the accelerator technology, lack of debris/contamination, and ability to provide high power. Industry turned away from this technology because of the requirement to feed up to 10 scanners from one linear FEL to make it economically feasible, the large footprint, and generation of radioactive byproducts. All of these issues are overcome in the presented concept using a compact storage ring with steady-state FEL lasing action. At 1 kW output power, comparable cost and footprint to an LPP source, this source is ideally suited for use on a single scanner and promises reliable, contamination free operation. FEL action in the storage ring is sustained by operating the FEL well below the saturation regime and preserving the equilibrium low emittance and energy distribution of the ring.