Rolls-Royce SMR secures contractual certainty to build Europe’s first SMR fleet

It has been announced that Rolls-Royce SMR and Great British Energy - Nuclear (GBE-N) have signed a new contract which will enable an immediate start on the delivery of three Rolls-Royce Small Modular Reactors (SMRs). The reactors will be installed at Wylfa on the coast of Anglesey in North Wales, with the site having been earmarked last November as the location for the UK’s first SMRs.

The new agreement will allow work to start on site, enabling Rolls-Royce SMR to develop its design and order critical components from the supply chain. It also gives the certainty required to ramp up recruitment, with Rolls-Royce SMR and its supply chain partners expected to create 3,000 jobs local to the Wylfa site, and an additional 5,000 jobs nationally. Each Rolls-Royce SMR unit is expected to generate enough stable low-carbon electricity to power a million homes for 60+ years.

Chris Cholerton, Rolls-Royce SMR Chief Executive, said: “This contract unlocks the delivery of our first three units at Wylfa and is a tangible example of the Government’s ‘golden age’ of new nuclear being delivered successfully with British technology."[i]

He added: “We are transforming the way nuclear projects are delivered, to give greater cost and schedule certainty with a standardised, factory-built approach. This project is important to the UK’s energy security and will power up our business and the UK supply chain.”

Rolls-Royce SMR was chosen as the winning bidder in the Great British Nuclear (GBN) small modular reactor competition last year. The government competition to develop SMRs was announced by Conservative Chancellor Jeremy Hunt in 2023. As winners of the competition, Rolls-Royce SMR was able to apply for a loan provided by the National Wealth Fund, and with the success of that application now confirmed, the project will be supported with up to £599 million in funding.

What are Small Modular Reactors?

The IAEA (International Atomic Energy Association) defines Small Modular Reactors (SMRs) as “Advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, which is about one-third of the generating capacity of traditional nuclear power reactors.”[ii]

These devices are not only a fraction of the size of a conventional nuclear power reactor, but their modular design means that their systems and components can be factory-assembled and transported as a unit to a location for installation, this makes them more cost-effective and offer time-savings in their deployment.

Further, given their smaller footprint, SMRs can be sited on locations not suitable for larger nuclear power plants. According to the IAEA, repurposing coal plants with SMRs could be one way to support fast roll-out. Their generation capacity, between 200 MWe and 400 MWe, is similar to that of a typical coal fired plant, therefore these SMRs could be deployed to use existing grid connections on decommissioned coal powerplant sites. Benefits of such proposals include avoiding the necessary land acquisition for the SMR plant, the presence of existing water sources, established grid connections, as well as rail and road connectivity.

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Source: IAEA[iv]

References

[i] Rolls-Royce SMR secures contractual certainty to build Europe’s first SMR fleet | Rolls-Royce SMR

[ii] What are Small Modular Reactors (SMRs)? | IAEA

[iii] Repurposing Fossil Fuel Power Plant Sites with SMRs | IAEA

[iv] What are Small Modular Reactors (SMRs)? | IAEA

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