Rolls-Royce Holdings PLC (LSE:RR.) shares faced a blow as X-energy and Cavendish Nuclear were awarded £3.34 million from the government to build mini-nuclear reactors in Hartlepool.
These funds will aid X-energy and Babcock International PLC (LSE:BAB)-owned Cavendish’s plans to build 12 mini nuclear generators, known as small modular reactors, in the County Durham town by the early 2030s.
“We are delighted to receive this [...] award,” X-energy UK head Carol Tansley commented in a press release.
“It reflects the readiness of our advanced technology to contribute to the UK’s energy needs.”
X-energy added it would match the government funding under plans to eventually build 40 such reactors in the UK, offering power for 6 million homes, alongside sites in the US.
Small modularised reactors have long been proposed as cheaper and faster-to-build alternatives to traditional nuclear reactors, such as EDF’s costly Hinkley Point C.
By adopting a modularised design, most production takes place in factories.
Rollout of the technology is likely to take years though, with just three designs, from Rolls-Royce, GE Hitachi and Holtech, currently being assessed by regulators in the UK.
X-energy’s Xe-100 design is yet to enter this process, which itself takes several years, while a government plan to support the rollout has faced delays in recent months.
Rolls-Royce, which has spearheded mini-nuke development in the UK, warned in February that its first reactors could be built oversees as a result, with the government said to be fearing legal action from those not chosen in the SMR competition.
Rolls-Royce fell 1% to 414.80p on the news.