Rolls-Royce Holdings PLC (LSE:RR.) is in talks with investors about raising cash for its mini nuclear power stations and is looking at a "range of options".
The FTSE 100 engine maker has received interest in buying a stake in the venture from multiple investors, according to a Sunday Telegraph report.
It is looking to raise fresh funds for Rolls-Royce Small Modular Reactors, where funds need to be topped up after a fundraising in 2021 raised £195 million.
As well as reporting results that impressed investors, last week saw the UK's Office for Nuclear Regulation (ONR) give a green light to Rolls-Royce SMR advancing to the next stage of the regulatory approval process.
Rolls' group CEO Tufan Erginbilgic confirmed the investor discussions about raising money for the venture, telling the newspaper he was "very comfortable" about the funding process as SMR "is an attractive proposition and it’s got a great future and some investors potentially recognise that".
The small nuclear business, which is developing scaled-down nuclear reactors based on the proven technology the company provides for the Royal Navy's nuclear submarines, has drummed up almost £500 million of funding so far from private investment groups and grants from the government, with investors including US utilities Constellation and Exelon Generation, family office BNF Resources, and the Qatar Investment Authority.
A company spokesperson said the SMR business is "attracting investor interest and we continue to consider a range of options to support our future growth".