Rolls-royce searches for locations to build new mini nuclear power plants

ROLLS-ROYCE has kicked off the hunt for factory sites to build its mini nuclear reactors amid the scramble to reduce reliance on electricity generated by fossil fuels.

The FTSE 100 engineer will need about four factories to build its Small Modular Reactor (SMR). It is expected to announce candidate sites, which are planned to be in Britain, in the coming months.

One location will make the reactors’ pressure vessels, which contain the coolant and core, while the others will produce the remainder of the components. While a traditional nuclear power plant is built on site over a number of years, the main components of an SMR are factory-built, meaning they can benefit from the economies of scale.

The mini nuclear power station is thought to be a key method of providing dependable electric power without atmospheric pollution, promising carbon-free electricity at a fraction of the usual cost.

It comes as the West seeks to wean itself off Russian fossil fuels following the invasion of Ukraine and an unprecedented increase in gas prices.

Much more electricity generation is needed in the switch to green energy, meanwhile, with Britain’s policymakers looking to nuclear to provide power for windless, cloudy days. Boris Johnson, the Prime Minister, has said he wants to build eight nuclear power stations in the next eight years.

Access to a skilled workforce, available land, access to ports and the speed of local planning permissions are likely to be factors in deciding where to put the factories. Rolls-royce’s decision to make them in Britain also raises the possibility of a lucrative export market for countries with fewer suitable sites for wind or solar power.

The company has set a target for each small reactor to cost £1.8bn, compared to up to £23bn for traditional reactors. Their smaller size also means decommissioned sites of old nuclear plants can host the reactors, capitalising on existing connections to the power grid.

The units will generate up to 440MW, enough to power a city the size of Sheffield. If delivered on budget they will deliver a seventh of the power of Hinkley Point C in Somerset for a twelfth of the price.