London Daily

Focus on the big picture.
Thursday, Sep 18, 2025

UK poised to confirm funding for mini nuclear reactors for carbon-free energy

UK poised to confirm funding for mini nuclear reactors for carbon-free energy

Rolls-Royce-led consortium already has £210m in private backing for plans to build 16 reactors across the country
The government is poised to approve funding for a fleet of Rolls-Royce mini nuclear reactors that the prime minister hopes will help the UK reach his target of zero-carbon electricity by 2035.

A consortium led by the British engineering firm had already secured £210m in backing from private investors for the small modular reactor (SMR) project, a sum that the government is expected to match or better. Confirmation is expected before the spending review on 27 October, according to well-placed sources.

The consortium, known as UK SMR, will rebrand as Rolls-Royce SMR to coincide with Westminster’s blessing.

Tom Greatrex, the chief executive of the Nuclear Industry Association (NIA), said: “Match-funding for Rolls-Royce would be a huge signal to private investors that the government wants SMRs alongside new large-scale stations to hit net zero. It would also show investors that the government believes in nuclear as a green technology.”

Backing from the government will pave the way for the consortium’s multibillion-pound plan to build 16 SMRs around the country, the first of which could be plugged into the grid by 2031.

Each reactor, designed to be easy to build and install, will have a capacity of 470 megawatts (MW), enough to power nearly 1.3m homes, based on average household usage.

Boris Johnson visited Rolls-Royce’s Bristol factory on Friday, where he was shown round the facility by the engineering firm’s chief executive, Warren East. Neither Rolls-Royce nor No 10 would comment on whether the future of SMRs was discussed during the visit but the firm this week touted the technology as a means of providing carbon-free power for producing sustainable aviation fuel.

SMRs are understood to be a key component of the prime minister’s pledge to eliminate fossil fuels from electricity generation by 2035, a landmark promise he made last month in the run-up to the UK’s hosting of the Cop26 climate summit in Glasgow.

Rolls-Royce is being advised by HSBC, which has helped it secure £210m from private investors, a condition of the government stumping up the same amount.

Confirmed support for SMRs could signal a concerted effort within government to reverse the scheduled decline in the UK’s nuclear power capacity. About 20% of the nation’s electricity comes from 13 nuclear reactors capable of producing 7.8GW of power. But more than half of that capacity comes from reactors due to retire by 2025, and plans to replace them have stalled.

Toshiba pulled out of a plant at Moorside in Cumbria in 2020, and Hitachi withdrew planning consent for a project at Wylfa Newydd, on Anglesey, this year. While Hinkley Point C is due to start generating electricity from 2026, only one new project, Sizewell C, is now in the works, with no final investment decision yet made.

Britain’s ability to build new nuclear reactors has been further complicated by the government’s unwillingness to allow any further involvement from the state-backed China General Nuclear. CGN has a 20% stake in Sizewell C but ministers have been looking into ways to remove it from the project before it moves to the construction phase. The Chinese company was due to take a lead role in the Bradwell reactor in Suffolk, which is now highly unlikely to go ahead.

The business secretary, Kwasi Kwarteng, said last week that weaning the nation off fossil fuels would involved building at least one new nuclear project, alongside renewables such as wind and solar.

The prediction is likely to hinge on whether the Treasury, which has clashed Kwarteng’s department over household support for energy suppliers, backs a new funding model for the industry.

Industry players are keen to see the government legislate to approve the regulated asset base (RAB) model, which allows private investors a more reliable stream of revenues from nuclear power plants – which typically require tens of billions of pounds to build – by piling costs on to household energy bills.

Greatrex said RAB funding “could at last mobilise the funding for nuclear large and small to restore a backbone of clean, reliable British power to our energy system”.

Rolls-Royce has said it could create 6,000 UK jobs within five years if the government backs its SMR plans. It has also reportedly held discussions with customers overseas, including companies such as Amazon that operate energy-hungry datacentres.

The nine-strong consortium also includes the National Nuclear Laboratory and Laing O’Rourke, the construction firm, alongside Assystem, SNC Lavalin/Atkins, Wood, BAM Nuttall, the Welding Institute and Nuclear AMRC.

Small modular reactors were first developed in the 1950s for use in nuclear-powered submarines. Since then Rolls-Royce has designed reactors for seven classes of submarine and two separate land-based prototype reactors.

Rolls-Royce did not return a request for comment.
Newsletter

Related Articles

0:00
0:00
Close
Macron and his wife to provide 'scientific photographic evidence' that she is a real woman
US Tech Giants Pledge Billions to UK AI Infrastructure Following Starmer's Call
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
DeepMind and OpenAI Achieve Gold at ‘Coding Olympics’ in AI Milestone
SEC Allows Public Companies to Block Investors from Class-Action Lawsuits
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Federal Reserve Cuts Rates by Quarter Point and Signals More to Come
Effective and Impressive Generation Z Protest: Images from the Riots in Nepal
European manufacturers against ban on polluting cars: "The industry may collapse"
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Trump: Cancel quarterly company reports and settle for reporting once every six months
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
×