Britain has chosen Rolls-Royce SMR to spearhead the construction of the nation's first small modular nuclear reactors (SMRs), aiming to accelerate the decarbonisation of its power network by the mid-2030s.
The government has committed £2.5 billion over the next four years to the SMR programme, signalling the start of one of Europe's first small-scale nuclear industries.
SMRs, about the size of two football pitches, can be built in a factory. This makes them faster and more cost-effective to construct compared to traditional plants, which can take over a decade to build and often face planning delays in the UK.
In addition to SMRs, the government announced a £14.2 billion investment in Sizewell C, a large-scale nuclear plant in eastern England, marking "the biggest nuclear rollout for a generation"
Rolls-Royce SMR, majority owned by FTSE 100 engineer Rolls-Royce RR.L which makes the power systems for Britain's nuclear submarines, said it would build three units."
Doing lots of them gives you that opportunity to bring down the cost, that's the big prospect," Energy Minister Ed Miliband told Sky News.
"It's huge for energy security, but it's also a huge opportunity for Britain."
Dozens of countries across the world, including the United States, Canada, Romania and Czech Republic, are looking at SMRs, opening up a big market if the British project is successful.
Rolls-Royce CEO Tufan Erginbilgic said he expected Rolls-Royce SMR to grow "materially". Britain's state-owned energy company, Great British Energy - Nuclear, will aim to sign a contract with Rolls-Royce SMR and pick a site later this year, subject to regulatory approval.
The SMRs could support 3,000 jobs and power about 3 million homes once they are connected to the grid in the mid-2030s, the statement added.
Rolls-Royce SMR was chosen over Westinghouse, Holtec Britain and GE-Hitachi Nuclear Energy - an alliance between General Electric Co GE.N and Japan's Hitachi Ltd 6501.T - in a two-year competition for the SMR contract.
