Rolls-Royce Holdings PLC (LSE:RR.) is widely expected to be among the final contenders as the UK government prepares to announce the next stage of its Small Modular Reactor (SMR) programme on Wednesday, according to a note from Citi.
The government aims to select one or two companies to proceed with the construction of up to 16 SMRs between 2030 and 2050.
Rolls-Royce, GE-Hitachi, Holtec, and Westinghouse were shortlisted, though reports in April suggested Westinghouse had withdrawn.
While the original plan called for two winners to build four prototype reactors each, The Telegraph has reported that the Treasury may prefer to back a single bidder.
Citi believes Rolls-Royce, the only UK-based contender, is likely to be chosen, citing its export potential.
Citi estimates the value of building 16 SMRs at around £2 billion each, translating to 10–15 pence per Rolls-Royce share, not including additional earnings from services, replacements, or export deals.
The shares were off 1% at 876.8p.