The prospects for Small Modular Reactors in North Wales have taken a step forward as a new venture was formed.
Rolls-Royce Small Modular Reactor (SMR) business has today been established to bring forward and deliver at scale the next generation of nuclear power technology.
Rolls-Royce Group, BNF Resources UK Limited and Exelon Generation Limited will invest £195m across a period of around three years.
The funding will enable the business to secure grant funding of £210 million from UK Research and Innovation funding.
No sites were named today but Wylfa on Anglesey and Trawsfynydd in Gwynedd have been tipped as ideal locations for the mini-power stations.
The business, which will continue to seek further investment, will now proceed rapidly with a range of parallel delivery activities, including entry to the UK Generic Design Assessment (GDA) process and identifying sites for the factories which will manufacture the modules that enable on-site assembly of the power plants.
Discussions will also continue with the UK Government on identifying the delivery models that will enable long-term investment in the technology.
Warren East, Rolls-Royce CEO , said: “With the Rolls-Royce SMR technology, we have developed a clean energy solution which can deliver cost competitive and scalable net zero power for multiple applications from grid and industrial electricity production to hydrogen and synthetic fuel manufacturing. The business could create up to 40,000 jobs, through UK deployment and export enabled growth.”
They said they could be available to the UK grid in the early 2030s.
Nine-tenths of an individual Rolls-Royce SMR power plant will be built or assembled in factory conditions and around 80% could be delivered by a UK supply chain.
A single Rolls-Royce SMR power station will occupy the footprint of two football pitches and power approximately one million homes.
Business and Energy Secretary 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.”
Tom Samson, CEO, Rolls-Royce SMR, said: “Rolls-Royce SMR has been established to deliver a low cost, deployable, scalable and investable programme of new nuclear power plants.
“Our transformative approach to delivering nuclear power, based on predictable factory-built components, is unique and the nuclear technology is proven. Investors see a tremendous opportunity to decarbonise the UK through stable baseload nuclear power.”
Paul Stein, Chief Technology Officer, Rolls-Royce and Chairman of Rolls-Royce SMR, added “By deploying SMRs in the UK and overseas we will be making a significant contribution to decarbonisation.”
Sean Benson, Director of BNF Capital Limited, said: “BNF has an established history of energy market investing and we are proud to be a part of Rolls-Royce SMR in this exciting opportunity.
“Following reviews of numerous proposals we found that this project, featuring a highly experienced team was the most realistic, affordable and scalable solution for provision of carbon- free baseload and alternative power requirements.”
Ralph Hunter, Chief Operating Officer of Exelon Nuclear Partners and Vice President of Exelon Generation, said: “ We believe that small modular reactors could become a crucial part of the world’s clean energy mix and we are confident that, as an operational partner, we can help develop, deploy and operate a fleet of world-class SMRs.”
Shadow Minister for Climate Change, Janet Finch Saunders MS, said: “This is fantastic news for people in Wales and the UK, and we now have an opportunity to deploy more low carbon energy than ever before and ensure greater energy security and independence.
“The new investment means we could potentially welcome new small nuclear reactors in Trawsfynydd and Wylfa due to the vital pre-existing infrastructure that feeds into the National Grid.
“The modular reactor technology will help to reduce our dependency on fossil fuels and exposure to global price spikes, while creating affordable, cleaner energy for Welsh people.
“The Labour Government in Cardiff Bay must throw its full weight behind nuclear energy as its current non-committal policy will only hinder our fight against climate change as we strive towards reaching net zero by 2050.”
