Contract to kickstart site-specific design and planning work on first three SMR projects
The nuclear division of the government’s net zero energy company has signed a contract with Rolls-Royce to formally start design on the UK’s first three small modular reactors.
The deal between Great British Energy and Rolls Royce comes ten months after the latter was selected as the government’s preferred technology partner for the development of the mini reactors (SMRs), which are seen as a key component in the country’s net zero transition.
The contract will require Rolls Royce’s SMR business to begin site-specific design, regulatory engagement and planning processes for the UK’s first batch of SMR projects ahead of a final investment decision by the government. The company is also working on six SMRs in Czechia.
Great British Energy Nuclear (GBEN) chair Simon Bowen said the deal was an “immense moment” for the UK nuclear programme and represents “true recognition of the efforts made across GBE-N, Rolls-Royce SMR and Government to get to this point”.
The Civil Engineering Contractors Association has welcomed the deal but cautioned that it must be followed up with “sustained focus on delivery” including clear project milestones, a credible long-term pipeline, proportionate and efficient regulation, and procurement routes that allow firms of all sizes to invest with confidence.
Funding of £2.6bn has already been allocated to the SMR programme in the 2025 spending review to enable the contract and wider programme delivery, with more than £350m in contracts awarded so far.
British firms working on the programme so far include Mace Consult, Turner & Townsend and WSP.
Rachel Reeves said today’s deal will “strengthen our energy security, create skilled jobs and help to build a new generation of homegrown nuclear technology that will power our economy for decades to come”.
Energy secretary Ed Miliband added: “At a time of global instability, this is a major milestone for Britain’s energy security.”
Miliband said the government’s clean energy ambitions were “the only route to getting off the rollercoaster of fossil fuels and take back control of our energy independence”.
Oil prices climbed above USD $100 per barrel again this morning after the collapse of talks between Iran and the US and Israel over Iran’s closure of the Strait of Hormuz, through which a fifth of the world’s oil supplies travel.
The US has said it will start a blockade of Iranian ports this afternoon in an effort to pressure Iran to come back to the table and cease its threats to shipping.
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