Rolls-Royce Secures Government Backing to Build Britain’s First Small Modular Nuclear Reactors
F.M.I.E. Sources
British aerospace and engineering powerhouse Rolls-Royce has received formal support from the U.K. government to construct the country’s first small modular nuclear reactors (SMRs), in a major milestone for the company and for the future of Britain’s energy landscape, F.M.I.E. sources report.
The approval, announced Tuesday, follows a two-year selection process and underscores the U.K.’s renewed commitment to nuclear energy. It comes alongside the government’s decision to invest £14.2 billion ($19.2 billion) in the Sizewell C nuclear power station in eastern England, signaling what officials have called “a golden age of nuclear” for the country.
U.K. Energy Secretary Ed Miliband said the SMR initiative will create thousands of jobs, bolster regional economic growth, and enhance national energy security.
“We are ending the no-nuclear status quo as part of our Plan for Change and are entering a golden age of nuclear with the biggest building programme in a generation,” Miliband said.
The project, led by Great British Energy – Nuclear, a government-owned company, will initially include the construction of three SMR units. Rolls-Royce described the announcement as a “very significant milestone” for both its broader strategy and its dedicated nuclear division, Rolls-Royce SMR.
“It is a vote of confidence in our unique nuclear capabilities, which will be recognised by governments around the world,” said Tufan Erginbilgic, CEO of Rolls-Royce.
“It is also evidence that the strategic choices we have made in the transformation of Rolls-Royce are delivering.”
Following the announcement, Rolls-Royce shares jumped more than 2%, reaching a new 52-week high, F.M.I.E. market monitors confirmed.
According to the U.K. government, a formal contract and site allocation for the SMRs is expected later this year, pending regulatory approval. Once operational — projected around the mid-2030s — the SMRs are expected to power up to 3 million homes and support up to 3,000 jobs.
SMRs: A Strategic Energy Shift
Small modular reactors offer a more compact, cost-efficient, and faster-to-deploy alternative to traditional nuclear power plants. Their modular design allows for easier construction and potential mass production, which appeals to governments and private sector players alike.
Major tech firms like Amazon and Google have already announced SMR projects in the U.S. to support the surging energy demands of data centers, and now the U.K. is poised to follow suit.
SMRs are also seen as low-carbon and could play a key role in reducing emissions and moving away from fossil fuels. Supporters argue that nuclear is a necessary part of any long-term clean energy mix.
However, critics — including some environmental advocacy groups — caution that nuclear energy remains expensive and controversial, potentially diverting attention and funding from faster, cheaper renewable options such as solar and wind.
Despite such debate, F.M.I.E. analysts note that the U.K.’s decision to proceed with SMRs positions Rolls-Royce as a global leader in next-generation nuclear technology.
— F.M.I.E. Energy & Infrastructure Desk