Rolls-Royce Holdings PLC's (LSE:RR.) plans to build mini nuclear power stations are moving ahead after the UK government asked the Office for Nuclear Regulation (ONR) to begin design assessment of the company’s 470MW Small Modular Reactor (SMR).
The request follows a readiness review of Rolls-Royce's application by the Department of Business, Energy and Industrial Strategy, which concluded that the design is ready to enter the Generic Design Assessment (GDA) process, the ONR said in a statement.
“The assessment will begin once the necessary arrangements around timescales and resources have been put in place,” the regulator added.
This is the first time an SMR will be assessed by the ONR. The process normally takes 4-5 years for large-scale reactor designs, Reuters reported.
The development of SMRs is a core part of the government's plan for a green industrial revolution and to reduce Britain’s dependence on gas, which on Monday hit record high prices on fears over sanctions resulting from the war in Ukraine.
With the SMR technology, a single power station will occupy just a tenth of the size of a conventional nuclear generation site and power around a million homes, according to Rolls-Royce.
Its SMR power station would generate up to 470MW of low carbon energy, equivalent to more than 150 onshore wind turbines.
Rolls-Royce has secured funding of around £500mln for its SMR development project, including investment from Qatar’s sovereign wealth fund and £210mln from the UK government.
Tom Samson, Rolls-Royce SMR chief executive, said entering the assessment process was another major milestone for its SMR goal.
“The UK regulatory process is internationally recognised and respected. We welcome the scrutiny and challenge that goes into the assessment of our nuclear power plant design,” he told the Telegraph.
The company aims to start production of the SMR power stations in the early 2030s. It would charge about £1.8bn for the 470MW units, which will generate enough to power a city the size of Sheffield, the Telegraph reported.
“This is a significant step in bringing SMRs into existence. We're proud to back Rolls' plan with an initial £210m to develop their design,” commented Business Secretary Kwasi Kwarteng.
The Nuclear Industry Association said: “This is a vital step forward for British nuclear technology. The UK needs the Rolls-Royce SMR to strengthen our energy security and cut our dependence on gas as we move toward net zero.
“The SMR can also play an essential role in enhancing British industrial capability, creating tens of thousands of jobs, revitalising the nuclear skills base and boosting the green economic recovery.”