Rolls-Royce appointed the winning tenderer for small British nuclear reactors | Rolls-Royce

Rolls-Royce won a competition to be the first company to try to build small modular nuclear reactors (SMR) in the United Kingdom, as part of a government effort to push Great Britain to the border of nuclear energy technology.

Great British Energy-Nuclear said on Tuesday that Rolls-Royce SMR was the favorite program of the program, after a competition that opposed the manufacturer FTSE 100 to two companies belonging to the United States.

The announcement of the state -owned electricity company has been part of a wider thrust for nuclear energy by the government, as it has promised to invest 14.2 billion pounds Sterling to build the large -size C plant in suffolk.

Nuclear investments will constitute a key element in the expenditure examination which will be announced Wednesday by the Chancellor, Rachel Reeves, while the government tries to move the attention of a joint tour on winter fuel payments for retirees.

Sizewell C will produce 3.2 Gigawatts (GW) of power, enough for about 6 million houses. On the other hand, the SMRs of Rolls-Royce will each provide around 470 megawatts. A press release from the separate government said that SMRS would generate collectively up to 1.5 GW of electricity, which suggests that Rolls-Royce will be authorized to build at least three SMRs.

The crucial difference between large plants such as Sizewell C and mini nuclear sites is that SMRs will be mainly built on a unique design on a factory line, rather than on site individually. These “modules” built in the factory will then be mounted on the site, in order to make the construction of nuclear power plants cheaper, less complex and less subject to extremely expensive delays that tormented the Hinkley Point C factory.

The SMR approach is not proven, without any site yet fully operational in the world. They are also likely to face the local and national opposition. The Green Party said Tuesday that nuclear energy was slow and costly.

However, Rolls-Royce argued that the technology of pressure water reactors that he chose is well understood and will allow him to start generating power by 2032 at the earliest. Data for technological companies is a key target customer.

Ed Miliband, the energy secretary, said: “We put an end to the nuclear status quo as part of our change plan and enter into a nuclear golden age with the largest generation construction program.”

The government did not reveal the locations of the first British SMRs, which some in industry had hoped to accelerate the process. They are likely to be located next to retired nuclear power plants such as Oldbury in Gloucestershire and Wylfa in the north of Wales.

Rolls-Royce, based in Derby, beat competition from American companies Holtec and Ge Hitachi, while Westinghouse, belonging to Canada, abandoned competition earlier.

Rolls-Royce SMR has always been considered the favorite by far. The company belongs to the majority by Rolls-Royce, with other investors such as the sovereign wealth fund of Qatar, the BNF resources controlled by the France Perrodo family, whose wealth comes from fossil fuels, the American energy company Constellation and the Czech public service CEZ.

The decision will nevertheless represent a new increase in Rolls-Royce, which has seen its share price reach a record this month, making it the largest British manufacturer by market value. Rolls-Royce’s share price increased by 2.4% on Tuesday to reach a new record of £ 9.12.

The company has benefited from the resumption of the request of its jet engines, the increase in defense expenses caused by the invasion of Ukraine by Russia, as well as the efforts to renegotiate contracts by the Director General, Tufan Ergingiç.

Erginbilgiç said: “This is a very important step for our companies and Rolls-Royce SMR. It is a vote of trust in our unique nuclear capacities, which will be recognized by governments around the world.”

The decision to try to build SMRs has been subjected to years of delay. Rolls-Royce submitted a design proposal for the first time in 2015 in the hope of building the first reactor in 2025. This target date continued to back away as Rolls-Royce awaited approval under conservative governments and now work.

The government has said that this decision would create 3,000 jobs at the top of construction, would increase regional economies and strengthen energy security. It will aim at 70% of the parts to be based in the United Kingdom, although the delay has already meant that Rolls-Royce has chosen a non-UK supplier for crucial pressure vessels.

While the United Kingdom should obtain the first reactor, Rolls-Royce has already agreed to produce an SMR in the Czech Republic, and it is in the last two in a competition in Sweden.