Rolls-Royce named winning bidder for UK small modular reactors

Rolls-Royce SMR has been selected as the preferred bidder to partner with Great British Energy – Nuclear to develop small modular reactors.

The contract will create significant long-term value for Rolls-Royce and generate employment, boost the supply chain and generate economic growth, including through the capture of significant export opportunities.

Rolls-Royce SMR has been selected to build three SMR units in the UK., following a rigorous competition.

Tufan Erginbilgic, CEO at Rolls-Royce said: “This is a very significant milestone for our business and Rolls-Royce SMR. It is a vote of confidence in our unique nuclear capabilities, which will be recognised by governments around the world.

“It is also evidence that the strategic choices we have made in the transformation of Rolls-Royce are delivering. I believe the value of Rolls-Royce SMR will grow materially from here as we successfully execute and deliver on the potential of this venture.”

As part of its industrial strategy, the government has pledged to invest more than £2.5bn for the overall small modular reactor programme in this Spending Review period.

Chancellor of the Exchequer, Rachel Reeves, said: “The UK is back where it belongs, taking the lead in the technologies of tomorrow with Rolls-Royce SMR as the preferred partner for this journey.”

The success of Rolls-Royce SMR in the two-year-long process is testament to Rolls-Royce’s unique nuclear capability and the proven technologies within the SMR venture.

Rolls-Royce SMR is 18 months ahead of its competition in the UK’s independent industry regulatory assessment process and decision will help the business retain its crucial first mover advantage in a market that is growing and attracting significant international interest.

The news has been welcomed by Baggy Shanker, Labour MP for Derby South and chair of the all-party parliamentary group on small modular reactors.

He said: “This is a major step forward for Britain. Selecting Derby’s very own Rolls-Royce SMR as the UK’s preferred bidder shows the power of backing British engineering, skills and ambition.

“As Chair of the APPG on SMRs, I’ve been making the case that investing in British innovation is key to building a stronger, more secure future for our country. This decision shows that call has been heard and that this government is working side by side with British industry to unlock our potential – and this is just the beginning.”

Catherine Atkinson, Labour MP for Derby North and vice-chair of the all-party parliamentary group, added: “The decision to back Rolls-Royce as the country’s preferred Small Modular Reactor bidder comes with over £2.5 billion of investment and the potential to create up to 3,000 skilled jobs whilst delivering clean, secure energy powering homes and businesses.

“Cities like Derby have the skills and ambition to lead the way.”

Energy Secretary Ed Miliband said: “Great British Energy – Nuclear has run a rigorous competition and will now work with the preferred bidder Rolls-Royce SMR to build the country’s first ever small modular reactors – creating thousands of jobs and growing our regional economies while strengthening our energy security.”

Great British Energy – Nuclear is aiming to sign contracts with Rolls-Royce SMR later this year and will form a development company.