National Wealth Fund commits up to £599m to Rolls-Royce SMR

Following the end of a competitive process, Great British Energy-Nuclear (GBE-N) and Rolls-Royce SMR today signed a contract that enables work to start immediately on the delivery of three Rolls-Royce Small Modular Reactors (SMRs). The National Wealth Fund’s financing will support the progression of the generic design of the new SMR technology, with Rolls-Royce SMR having already moved to the third and final stage of the Generic Design Assessment led by the UK’s independent nuclear regulators.

SMRs offer a new route to clean, homegrown power, helping shape a more resilient domestic energy system. Each Rolls-Royce SMR will generate 470 megawatts of stable low-carbon electricity, enough to power the equivalent of around a million of today’s homes.

The National Wealth Fund’s financing is expected to contribute to creating around 1000 jobs at Rolls-Royce SMR. By supporting British nuclear technology, the National Wealth Fund is playing a critical role increasing investor confidence, enabling export and helping to crowd in additional private capital to fund the development of this new technology here in the UK.

Nuclear is one of the ten sectors identified by the National Wealth Fund in its recent Strategic Plan as offering the most catalytic opportunities for investment. The transaction also marks the National Wealth Fund’s second financing in nuclear, following its lending to Sizewell C announced in July.

Chancellor of the Exchequer Rachel Reeves said:

“This investment, along with vital financing from the National Wealth Fund, will 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. We have the right economic plan – one where growth and clean energy go hand in hand – and one that will benefit everyone across the country.”

Secretary of State for Energy Security and Net Zero Ed Miliband said:

“At a time of global instability, this is a major milestone for Britain's energy security. We are backing a British company to deliver our first small modular reactors - creating a generation of good jobs, driving growth and providing clean, homegrown power for decades to come. Our clean energy mission is the only route to getting off the rollercoaster of fossil fuels and take back control of our energy independence."

National Wealth Fund CEO, Oliver Holbourn, said:

“Today’s announcement marks a significant moment for the future of our nuclear industry. The development and deployment of Rolls-Royce SMR's technology here in the UK will create thousands of jobs and pave the way for an affordable, cleaner, and more secure energy system. This is exactly what the National Wealth Fund has been established to deliver, backing promising homegrown projects and technologies that will deliver transformational impacts.”

Chris Cholerton, Chief Executive of Rolls-Royce SMR, said:

“This contract unlocks the delivery of our first three units at Wylfa and brings certainty to the UK SMR programme. With plans for up to six further units in Czechia, this announcement makes Rolls-Royce SMR the only company with multiple commitments in Europe. 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, and we are excited by the opportunity and are focused on successful delivery”.

Simon Bowen, Chair of GBE-N, added:

“This is an immense moment for the UK nuclear programme, our organisation, and the industry as a whole. Today represents a true recognition of the efforts made across GBE-N, Rolls-Royce SMR and Government to get to this point, and I’m hugely proud of the team for reaching this critical milestone.”

Simon Roddy, CEO of Great British Energy - Nuclear, said:

"This agreement is a landmark moment for the nuclear industry. Working with Rolls-Royce SMR, we’re bringing a significant long-term investment to the UK industrial supply chain. Supporting skills, innovation and growing our industrial capability is essential to this partnership, and will ensure the UK is well-placed to deliver the next generation of nuclear infrastructure.”

In addition to its contract with GBE-N, Rolls-Royce SMR is the preferred SMR technology partner for Czech utility ČEZ to provide up to 3GW of low-carbon energy for Czechia and is one of only two SMR companies to progress to the final stage of Vattenfall’s technology selection process in Sweden.