Key Moments:
- Rolls-Royce has been chosen to build the UK’s first small modular nuclear reactors (SMR).
- The British government committed £2.5 billion to the SMR project and an additional £14.2 billion for the Sizewell C nuclear plant.
- Rolls-Royce’s shares jumped by over 2% on Tuesday.
UK Awards Pivotal SMR Project to Rolls-Royce
Rolls-Royce will be the company to spearhead the United Kingdom’s small modular reactor (SMR) initiative. This marks a significant step in the UK’s goal of expediting the decarbonization of its electricity grid.
Following a two-year competitive process, the government announced on Tuesday that it would invest £2.5 billion ($3.4 billion) over the next four years to launch one of Europe’s earliest small-scale nuclear industries.
The news served to lift sentiment surrounding Rolls-Royce’s stock, allowing its share price to jump by over 2.12% during Tuesday’s trading session and climb above the 900 GBX mark.
Additional Billions Pledged for Sizewell C Project
The Rolls-Royce SMR reactor design is comparable in size to two football fields and can be largely manufactured off-site. This modular approach allows for more rapid and cost-efficient deployment compared to conventional nuclear facilities. Rolls-Royce will construct three SMR units under the new program.
Alongside the SMR investment, the government is also planning to allocate £14.2 billion for the large-scale Sizewell C nuclear plants. Energy Minister Ed Miliband told Sky News that undertaking numerous such projects offered the chance to reduce costs, which he described as a significant prospect. He further emphasized how it would contribute toward energy security and added that it was “a huge opportunity for Britain.”
Preliminary Plans and Global Market Potential
The state-run Great British Energy – Nuclear is expected to finalize a contract and select a development site before the end of 2025. Once operational, the first units could supply electricity to approximately 3 million households and create about 3,000 UK-based jobs.
In addition to domestic goals, the initiative is aimed at positioning the UK as a global SMR leader. A number of countries, including the United States and Canada, have already expressed interest in this emerging technology.
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