Shares in Centrica PLC (LSE:CNA) and Rolls-Royce Holdings PLC (LSE:RR.) climbed after a series of small nuclear reactor deals and a regulatory fast-tracking collaboration between the UK and US governments was announced on Monday.
The deals include the construction of a fleet of small modular nuclear reactors (SMRs) around the UK for British Gas owner Centrica, in a partnership with US company X-Energy.
The pair plans to start with up to 12 advanced modular reactors at EDF and Centrica’s Hartlepool site, which is already designated for nuclear eneregy and could provide up to 960 megawatts (MW) of power, enough for 1.5 million homes, before later creating similar sites around the country with the aim of developing a total of 6 gigawatts (GW) of nuclear power, enough for 14 million homes.
According to the companies, the Hartlepool project would generate enough power for up to 1.5 million homes and create up to 2,500 good jobs. The companies estimate the overall programme could deliver at least £40 billion in economic value, with £12 billion in value focussed for the North East of England.
Elsewhere, the UK government's "golden age of nuclear" announcement, timed ahead of Donald Trump’s state visit this week, said UK-based Tritax had teamed up with France's EDF to develop advanced data centres powered by SMRs developed by US-based Holtec International at the former Cottam coal-fired power station in Nottinghamshire, eastern England.
Downing Street's major push to expand nuclear power in recent months has included investing £14 billion for two new nuclear plants at Sizewell C and advancing plans for Rolls-Royce SMR unit to build the country’s first 'mini nuke' site.
The two governments said they "will fast-track nuclear reactor design checks" by recognising each other’s safety assessments, cutting duplication and speeding approvals to around 24 months for advanced designs such as the Rolls-Royce SMR.
The series of deals, which builds on existing US-UK cooperation, supports exports and comes as Rolls-Royce begins the US regulatory process for its SMR technology.
The UK and US will share the workload of new projects entering site licensing, speeding up delivery, to get nuclear project sites in the UK approved more quickly, the Department for Energy Security and Net Zero said in the statement.
"These major commitments set us well on course to a golden age of nuclear that will drive down household bills in the long run, while delivering thousands of good jobs in the short term," said Prime Minister Keir Starmer.
"Together with the US, we’re building a golden age of nuclear that puts both countries at the forefront of global innovation and investment."
Tufan Erginbilgic, CEO of Rolls-Royce, said: "We welcome the decisive action the US and UK governments are taking to deepen their cooperation in advanced nuclear technologies."
He said Rolls-Royce has "unique capabilities in nuclear, as the only company globally with full lifecycle experience, end-to-end capability and an established supply-chain" and so the company looks forward to "seizing the opportunities created by this agreement to further innovate and partner on both sides of the Atlantic in the development of advanced nuclear technologies".
The UK-US partnership extends to fusion energy, through coordinated experimental programmes where British and American expertise will combine with AI technology to develop advanced simulation tools, whilst test facilities will fast-track progress towards commercial fusion power.
Another angle to the partnership, known as the Atlantic Partnership for Advanced Nuclear Energy, is seen as eliminating dependency on Russian nuclear material by the end of 2028.
Other partnerships in the announcement included one between US reactor company Last Energy and port operator DP World to establish an apparent world-first "micro modular" nuclear power plant, while US-based pair TerraPower and KBR were said to be planning to conduct studies and evaluate sites in the UK for the deployment of the Natrium advanced reactor technology.
Shares in Centrica climbed 4% to 167p, close to two-year highs, while Rolls advanced 2% to new all-time highs around 1,153p.
** Update: Adds detail, share prices **