- Britain chose Rolls-Royce SMR to build its first small modular reactors, pledging £2.5 billion to accelerate clean energy and launch a domestic SMR industry.
- The government committed £14.2 billion to Sizewell C and plans to finalise a contract with Rolls-Royce SMR this year to boost energy security and power 3 million homes.
The UK Government has selected Rolls-Royce SMR to build Britain’s first small modular nuclear reactors (SMRs), taking a significant step towards decarbonising the power grid by the mid-2030s.
On Tuesday, ministers announced a £2.5 billion ($3.4 billion) investment over the next four years to launch the SMR programme, aiming to establish one of Europe’s first small-scale nuclear industries.
Unlike traditional nuclear plants, SMRs occupy the size of two football pitches and use factory-built parts, allowing for faster and cheaper construction. Traditional reactors typically take over a decade to build and often face planning delays in the UK.
In parallel, the government also committed £14.2 billion to construct Sizewell C, a large-scale nuclear plant in eastern England, as part of “the biggest nuclear rollout for a generation.”
Rolls-Royce SMR, majority-owned by FTSE 100 engineering firm Rolls-Royce, which also powers Britain’s nuclear submarines, plans to build three SMR units.
“Building multiple units gives us the ability to bring down costs, that’s the key advantage,” said Energy Minister Ed Miliband in an interview with Sky News. “This investment strengthens our energy security and opens up a huge opportunity for Britain.”
Governments worldwide, including the United States, Canada, Romania, and the Czech Republic, are exploring SMRs. Britain could potentially lead a significant international market if the programme proves successful.
Rolls-Royce CEO Tufan Erginbilgic expressed confidence in the venture, stating that Rolls-Royce SMR will grow “materially”.
Great British Energy – Nuclear, the government’s new state-owned energy company, will finalise a contract with Rolls-Royce SMR and select a construction site later this year, pending regulatory approval.
According to government projections, the SMR programme could create up to 3,000 jobs and supply power to around 3 million homes when the reactors connect to the grid in the mid-2030s.
Following a two-year competitive selection process, Rolls-Royce SMR beat out competitors including Westinghouse, Holtec Britain, and GE-Hitachi Nuclear Energy, a joint venture between General Electric and Japan’s Hitachi Ltd.