The initiative to construct the first series of small nuclear plants in the UK has advanced, with Rolls-Royce being named as one of the four companies selected to present a design for this emerging technology.

Alongside Rolls-Royce, the shortlisted companies include Holtec, Westinghouse, and GE-Hitachi, a collaboration between GE Vernova and Hitachi. These firms will compete for a significant share of the £20 billion in government funding allocated for small modular reactors.

This selection process is overseen by Great British Nuclear (GBN), a state-backed organization established by the former government to promote the deployment of nuclear energy. GBN indicated that the next phase will involve discussions with the qualified bidders.

The objective is to finalize the selection of one or two designs by the end of the year, with contract negotiations anticipated in the spring.

EDF, the French state-owned energy firm managing the current fleet of nuclear stations in the UK, had previously been in contention but chose not to submit a bid last July.

Chris Cholerton, CEO of Rolls-Royce SMR, highlighted that his company is the sole small modular reactor manufacturer in Britain and claims to be 18 months ahead of its rivals in the regulatory approval process. “This development allows us to sustain our crucial first-mover advantage,” he remarked.

This month, Rolls-Royce was also selected to create a series of small nuclear plants in the Czech Republic, marking a significant endorsement of its technology in the European market.

Andy Champ, the UK lead for GE-Hitachi, noted that work is already in progress in Canada for its BWRX-300 design. He expressed confidence in their position to spearhead SMR deployment in the UK by leveraging expertise gained in other markets.

The first small modular reactor is projected to come online by 2035, which means it will not meet the Labour Party’s 2030 net-zero targets. Energy Secretary Ed Miliband has indicated that the new administration will endeavor to adhere to the previously set schedule.

Concerns persist regarding the financing structure for the construction and operation of small modular reactors, including the degree of government involvement in these developments. It is anticipated that after a final investment decision is made on the first reactors, private funding sources may be explored.

Proponents of small modular reactors argue that this technology presents a more affordable and expedited solution for enhancing the UK’s nuclear power supply, providing a stable energy baseline as the integration of intermittent renewable resources increases.

Nuclear power currently contributes approximately 14% to the UK’s electricity generation mix, a decrease from 20% in 2018. Most of the remaining nuclear stations are expected to be decommissioned by the end of the decade, with only one new project, led by EDF at Hinkley Point C, actively in development. Meanwhile, discussions regarding funding for the proposed Sizewell C station in Suffolk continue to progress slowly.

Unlike its predecessor, the Labour government has not imposed specific targets for the UK’s nuclear capacity, but Miliband has affirmed his strong backing for the small modular reactor initiative.

In June, Tufan Erginbilgic, CEO of Rolls-Royce, warned that the UK risks losing its opportunity to develop a supply chain for small reactors if winning designs are not chosen by year-end.

The locations for the initial reactors have yet to be finalized. A deal made in March with Hitachi returned two sites—Wylfa on Anglesey and Oldbury-on-Severn in Gloucestershire—under government oversight. Additionally, Moorside, located next to the Sellafield site in Cumbria, is also state-owned, making all three viable locations for the first small reactors.

A representative from the Department for Energy Security and Net Zero stated that the government is addressing a historical lack of new nuclear developments and that small modular reactors will significantly contribute to the UK’s energy security and support thousands of skilled job opportunities.

Small Modular Reactors: A Proven Concept in Theory

Unlike traditional nuclear facilities, small modular reactors can be manufactured in factories and occupy space equivalent to one or two football pitches, with capacities ranging from 300 to 500 megawatts. This is substantially less than the 3.2-gigawatt capacity of Hinkley Point C, which covers an area comparable to 245 football pitches.

Great British Nuclear has chosen companies that propose to construct smaller versions of established technologies rather than exploring innovative designs, such as Terrapower’s sodium fast reactor technology backed by Bill Gates. The companies selected argue that they will create compact versions of established pressurized water reactors, exemplified by Rolls-Royce’s offering, or boiling water reactor technology proposed by GE-Hitachi, both of which have been validated at larger scales.

Rolls-Royce’s pressurized water reactor is expected to produce 470 megawatts of electricity, enough to supply power to one million homes, boasting a lifespan of 60 years. GE Hitachi plans to construct 300-megawatt reactors, similar to those put forth by Westinghouse Electric, Holtec International, and Brookfield Renewable Partners.

The concept is sound: Small Modular reactors could be mass-manufactured in factories, increasing efficiency and minimizing construction risks. However, this approach remains unproven. Westinghouse faced bankruptcy in 2017 as a result of efforts to prefabricate large-scale plants off-site.