The UK government has moved to the next stage in its plans for small modular nuclear reactors, choosing four companies to negotiate for potential support. This is a significant step for the development of this emerging technology in the UK.
Selected for negotiations are Rolls-Royce, along with US firms Holtec Britain and GE Hitachi, and Canadian company Westinghouse Electric. These companies will discuss government funding that could reach billions of pounds.
Originally, six companies were considered, but US firm NuScale was not chosen, and France’s EDF withdrew to continue working on its own small modular reactor project, Nuward.
The government is expected to award contracts to two of these companies after negotiations are concluded, though there might be a chance for more.
This decision is encouraging for Rolls-Royce, which recently gained recognition as the Czech Republic’s preferred supplier and is among the final contenders in Sweden’s selection process.
The consortium led by Rolls-Royce has invested around £280 million so far, with an additional £210 million already secured in government support to navigate the stringent nuclear regulatory processes.
Chris Cholerton, CEO of Rolls-Royce SMR, noted that the company is ahead of its competitors in obtaining regulatory approvals, and this selection will help maintain its lead in the industry.
Small modular reactors refer to smaller nuclear power facilities that can be partially constructed off-site. Typically, these reactors have a capacity of up to 300 megawatts, but Rolls-Royce’s design is a bit larger, at 470 megawatts.
Supporters claim that the smaller size and modular approach of these reactors can help avoid the financial overruns and delays that have affected larger nuclear projects.
Globally, governments are keen to increase nuclear energy production to meet rising energy needs while reducing carbon emissions. Currently, there are only three operational small modular reactor designs in China, Russia, and a test reactor in Japan.
This initiative for UK government support began last year as part of a broader strategy to modernize the country’s aging nuclear power stations, many of which are expected to close by the decade’s end. The previous government set an ambitious target of achieving 24 gigawatts of nuclear capacity by 2050, up from the current 6 gigawatts. While the current Labour government has not reiterated this specific goal, it is committed to ensuring the long-term health of the nuclear sector, stating that new nuclear power plants will be vital for the UK’s energy security.
Although the timeline for contract awards has fallen behind expectations, officials like Simon Bowen, chair of Great British Nuclear, aim for the first small modular reactors to be operational by the mid-2030s.
GE Hitachi also expressed optimism about its BWRX-300 small modular reactor, calling it a safe, scalable, and reliable design, ready for collaboration with the UK government to achieve shared energy goals.