The development of one of the world’s first small modular reactors (SMR) has been backed by £210 million in new government funding for Rolls-Royce SMR, the government has announced.
The significant amount of money, matched by private investment, will be used to develop small modular reactors, which will be critical to energy security as we reduce Britain’s dependency on volatile fossil fuels.
New nuclear has a crucial role to play in providing reliable, affordable, low carbon energy as Britain works to reduce its dependency on volatile fossil fuels and exposure to global gas price spikes.
Commenting on the move, Kwasi Kwarteng said
“This is a once in a lifetime opportunity for the UK to deploy more low carbon energy than ever before and ensure greater energy independence.”
Matched by private sector funding of over £250 million, this investment will take forward phase 2 of the Low-Cost Nuclear project to further develop SMR design and take it through the regulatory processes to assess suitability of potential deployment in the UK. The funding was awarded through the Low-Cost Nuclear challenge at UK Research and Innovation.
SMRs have the potential to be less expensive to build than traditional nuclear power plants because of their smaller size. Their modular nature of the components offers the potential for parts to be produced in dedicated factories and shipped by road to site – reducing construction time and cost. Rolls Royce SMR estimate that each Small Modular Reactor could be capable of powering 1 million homes – equivalent to a city the size of Leeds.
Parliament is also considering the Nuclear Energy Financing Bill which establishes a new financing model for nuclear projects, known as the Regulated Asset Base (RAB). This would attract a wider range of private investment into these projects, reducing build costs, consumers’ energy bills and Britain’s reliance on overseas developers for finance.
The UK is investing millions into the nuclear industry, including up to £1.7 billion to bring at least one large-scale nuclear project to a final investment decision, and a new £120 million Future Nuclear Enabling Fund to provide targeted support towards further nuclear projects as part of the Net Zero Strategy.
Today’s £210 million grant follows £18 million invested in November 2019, which has already delivered significant development of their initial design as part of Phase One of the Low-Cost Nuclear project. Read details about the government’s previous £18 million investment in Rolls-Royce SMR’s plans for new Small Nuclear Reactors
