Rolls-Royce Secures Major UK Funding for SMR Development
Rolls-Royce has obtained up to £599 million from the United Kingdom’s national wealth fund to accelerate the development of the country’s first small modular nuclear reactors (SMRs). This funding will support the design and construction of SMRs at the Wylfa site on the island of Anglesey, known as Ynys Môn in Welsh.
SMR technology focuses on manufacturing nuclear power stations in factories, aiming to reduce costs and expedite installation processes.
Historical Context of the Wylfa Site
The Wylfa nuclear power station operated from 1971 until its final reactor was shut down in 2015. Subsequently, the Japanese conglomerate Hitachi attempted to build a new nuclear facility at the site but withdrew after failing to secure government funding. In 2024, the state-owned Great British Energy – Nuclear (GBE-N) acquired the Wylfa site from Hitachi.
Government Support and Economic Impact
Chancellor Rachel Reeves emphasized the significance of the investment, stating:
"This investment will help 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."
The national wealth fund anticipates that its financial support will facilitate the creation of approximately 1,000 jobs within Rolls-Royce.
The initiative aims to generate electricity without carbon dioxide emissions and presents an opportunity to establish a substantial export market for SMR technology.
Contract Signing and Project Advancement
On Monday, the government announced that Rolls-Royce SMR and GBE-N signed a contract enabling immediate commencement of work on SMR development.
This development is particularly significant for Rolls-Royce, a FTSE 100 company primarily known for manufacturing jet engines, which the government has selected as its preferred SMR developer.
Rolls-Royce holds the majority ownership of Rolls-Royce SMR, alongside Qatar’s sovereign wealth fund, France’s BNF Resources, and other stakeholders.
Rolls-Royce SMR currently employs over 1,000 individuals dedicated to producing SMR technology, which is also planned for installation at the Temelín nuclear power station in the Czech Republic.
Leadership Perspectives
Tufan Erginbilgiç, Chief Executive Officer of Rolls-Royce, described the funding as a:
"critical milestone for the business and for the UK as it works towards a golden age of new nuclear."
He added:
"It provides crucial contractual certainty in our domestic market that will unlock the opportunity to deploy a global fleet of Rolls-Royce SMRs."
Tom Greatrex, Chief Executive of the Nuclear Industry Association, characterized the agreement as a:
"historic step for clean power, industrial growth and skilled jobs in Wales."
He further stated:
"It marks the beginning of a significant and exciting new phase for the project and the people of Ynys Môn. It allows work to begin on a project that will create thousands of jobs and attract significant investment locally and across Britain, while helping to secure the UK’s long-term supply of reliable, low-carbon power."
About the National Wealth Fund
The national wealth fund, headquartered in Leeds, Yorkshire, officially launched in 2024 with the objective of driving investment into the UK’s clean energy and growth sectors. Although owned by the Treasury, the fund operates independently from the government.
