© Image: Rolls Royce SMR The UK government has heralded a “new golden age of nuclear” as it selected a Rolls-Royce small modular reactor (SMR) design for a £2.5 billion programme.
Rolls-Royce had submitted its SMR design as part of a government-run competition to deliver a new nuclear power plant by the mid-2030s.
The two-year process also attracted SMR bids from American firms Westinghouse and Holtec, alongside Japanese-American joint venture GE-Hitachi.
The SMR competition came as part of a strategy to spur greater investment in UK nuclear energy, including fusion, amid renewed interest due to the rise of power-hungry AI firms.
SMRs are miniature nuclear power plants, typically with a power output of up to 300 MW.
Industry advocates say SMRs provide a lower cost and more flexible option, with the factory-built modular designs also opening the potential for exports.
The International Energy Agency projects that the global SMR market will reach nearly £500bn by 2050.
However, critics remain sceptical that SMRs will reduce energy costs compared to renewable sources, alongside raising safety and environmental concerns.
UK ‘back where it belongs’, Reeves says
The government also announced that state-owned Great British Nuclear, which ran the SMR competition, will become Great British Energy – Nuclear (GBEN).
The rebrand reflects its “joint mission” with Labour’s flagship GB Energy, the government said.
Announcing the SMR decision, Chancellor Rachel Reeves said the UK is “back where it belongs” and “taking the lead in the technologies of tomorrow”.
The government will aim to sign contracts with Rolls-Royce later this year to form a development company, with the project potentially supporting up to 3,000 jobs.
GBEN will also aim to allocate a site for the first SMR, potentially at Wylfa in north Wales or Oldbury in Gloucestershire.
© Supplied by Sizewell CAs part of the spending review, set to be released tomorrow, the Labour government also confirmed a £14.2bn investment in the 3.2 GW Sizewell C reactor.
UK energy secretary Ed Miliband said the Labour government is “ending the no-nuclear status quo” and entering the country into a “golden age of nuclear”.
Miliband said the SMR programme will create thousands of jobs, grow regional economies and strengthen energy security.
Meanwhile, GBEN chairman Simon Bowen said the selection of Rolls-Royce is a “defining moment for the UK’s energy and industrial future”.
“By selecting a preferred bidder, we are taking a decisive step toward delivering clean, secure, and sovereign power.
“This is about more than energy—it’s about revitalising British industry, creating thousands of skilled jobs, and building a platform for long-term economic growth.”
‘Milestone achievement’ for Rolls-Royce
Rolls-Royce SMR chief executive Chris Cholerton said the firm’s selection is a “milestone achievement”.
“As well as delivering affordable, clean energy to support our nation’s energy independence – deploying three of our units will drive domestic growth by creating thousands of highly skilled, well-paid jobs and supply chain opportunities,” Cholerton said.
Alongside its success in the GBEN competition, Rolls-Royce has also been selected by Czech utility ČEZ Group to build up to 3 GW of capacity in the country.
© Supplied by Rolls-Royce SMRRolls-Royce is also a finalist in a Swedish SMR design competition run by state-owned energy firm Vattenfall.
“We are the only SMR company with multiple commitments to build projects in Europe, testament to our differentiated design and compelling offer,” Cholerton said.
As part of its SMR strategy, Rolls-Royce is also building a manufacturing and testing facility in Sheffield alongside a partnership with Siemens Energy.
Union backs nuclear investment
Meanwhile, the Unite union has backed the decision to select Rolls-Royce as the preferred SMR bidder.
Unite general secretary Sharon Graham said the SMR investment is “vital” for jobs in construction and the energy sector.
But Graham said the SMR programme and investment in Sizewell C “must only be a first step towards serious and sustained investment in UK nuclear power”.
“The promise of small modular reactors must be backed alongside investment in fusion, Graham said.
“The government also needs to commit to building a new nuclear power station at Wylfa.”
Industry groups also welcomed the investment in nuclear power through SMRs and Sizewell C.
Engineering Construction Industry Training Board (ECITB) chief executive Andrew Hockey said the commitment to Sizewell will “give greater certainty to the sector for planning”.
“Contractors, understandably, are reticent to invest in future talent when there is uncertainty around project statuses and timescales,” he said.
Hockey called on the government to work collaboratively with the industry to address skills shortages in the.
“Steel erectors, electrical technicians and welders – critical skills for new nuclear build – are among the roles most in demand,” he said.
“By investing in the workforce, the industry has a fighting chance of closing the skills gap and ensuring the sector has the skilled workforce it needs both for now and the future.”
‘Significant’ opportunities for UK in SMRs
While the UK government claimed its investment in SMRs puts Britain at a “competitive advantage” in the global race to build new nuclear, analysts have warned the UK will need to move quickly amid strong competition from the US and China.
Dods Political Intelligence senior political consultant Jack Green-Morgan said the opportunities associated with SMRs are “significant”.
“Domestically, they could provide cheap and reliable energy to energy-intensive industries, helping the UK overcome the obstacle of prohibitive industrial energy prices,” he said.
© Supplied by Rolls-Royce SMR“Internationally, the UK’s SMR programme could provide British businesses with a lucrative export opportunity, particularly as investment in energy-heavy data centres accelerates, and providers look to nuclear for reliable power.
“The risk is that the UK does not move fast enough.”
Green-Morgan said the global race to develop SMRs is “already heating up”, with the US government committing $900m (£667m) to the technology.
Manufacturing Technology Centre (MTC) civil nuclear expert Dr Andrew Bowfield said the government needs to provide clarity on locations, supply chain investments and regulation to “capitalise on this opportunity”.
“If decisive action is taken now, the UK can shape the future of the global SMR sector, driving job creation, investment and energy security,” Dr Bowfield said.
“But any hesitation could mean missing a once-in-a-generation opportunity.”
