Rolls-Royce Holdings PLC (LSE:RR.) seemed satisfied with the government’s update on the UK’s first small modular reactor (SMR) competition, laid out in Thursday’s ‘green day’ announcements.
“Rolls-Royce SMR welcomes the government’s commitment to investing in an energy revolution,” the FTSE 100-listed firm told Proactive.
“As the UK’s sovereign nuclear technology, we are well placed to support the government’s energy security and net zero objectives.”
Ministers updated on plans for the mini-nuclear reactor competition, which will kick off in April under the watch of new public body, Great British Nuclear, and be announced by autumn.
Since chancellor Jeremy Hunt first unveiled the plans in his spring budget, firms have queued up to make their mark in the prospective mini nuclear industry, though Rolls-Royce’s SMR remains the only one passing through the regulatory process.
Rolls-Royce already received £210mln from the government in late 2021 to help develop its SMR technology, with the winners of the competition set to receive further public funding.
Its SMRs are set to cost £1.8bn to build and power up to 400,000 homes, with the components mainly able to be assembled in factory conditions.
Alongside rivals Last Energy and Newcleo, which gained approval for its own reactors in the US this year, Rolls-Royce is eyeing a cheaper rollout of nuclear energy than larger, traditional plants like Sizewell C and Hinckley Point C, through standardising the facilities.
The government also reiterated its commitment to the larger ongoing projects meanwhile, as part of plans to double the UK’s power output by the late 2030s, with 25% of the power to come from nuclear by 2050.
Rolls-Royce shares rose 1% to 149.5p following the news.