The British government has selected Rolls-Royce SMR as the preferred bidder to build the country's first small modular nuclear reactors (SMRs) as part of its plan to speed up the decarbonization of the power network from the mid-2030s, it said in a statement on Tuesday.
The government on Tuesday pledged 2.5 billion pounds ($3.4 billion) for the SMR program over the next four years, aiming to kick-start one of Europe's first small-scale nuclear industries.
SMRs are typically the size of two football pitches, with parts that can be built in a factory, making them quicker and cheaper than traditional plants, which take more than a decade to construct and face planning delays in the U.K.
The government also said on Tuesday it would invest 14.2 billion pounds to build a large-scale nuclear plant, Sizewell C, in eastern England, as part of "the biggest nuclear rollout for a generation."
Rolls-Royce SMR, majority owned by FTSE 100 engineer Rolls-Royce, 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 U.S., Canada, Romania and Czechia, are looking at SMRs, opening up a big market if the British project is successful.
Rolls-Royce CEO Tufan Erginbilgiç 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 and Japan's Hitachi Ltd – in a two-year competition for the SMR contract.
