Rolls-royce mulls building first mini-nuclear reactor on Continent

THE first Rolls-royce mini-nuclear reactor will be built on the Continent instead of Britain if ministers do not speed up their decision-making, the engineering giant’s chief has warned.

Tufan Erginbilgic said he was confident the Derby-based company’s small modular reactor (SMR) technology was still far ahead of competitors. But he said time was running out for the UK to benefit from its “first mover” advantage, as Rolls has also held talks about deploying SMRS in Eastern Europe.

Great British Nuclear (GBN), the public body set up to lead the UK’S nuclear power revival, is preparing to choose which SMR prototypes to support from a shortlist of six companies, including Rolls. After delays to the process, GBN has promised to unveil winners this spring.

But Mr Erginbilgic warned that the selection would “not mean anything” unless detailed decisions are taken within months on where the reactors will be built.

Asked whether further hold-ups could lead to the first Rolls SMR being built on the Continent, he said: “We will do the right thing for Rolls-royce, and that is an option available to us.

“My hope is that the GBN process goes at pace and that we can build it [the first Rolls SMR] in the UK. But I would not rule out what you have just said.” His comments will be seen as a fresh warning shot to ministers as frustration grows in the nuclear industry about a lack of progress in choosing locations for SMRS.

George Osborne, the former chancellor, announced government plans to hold an SMR design competition as far back as 2015, but since then no sites have been brought forward.

Meanwhile, several European countries, including Poland, the Czech Republic and Romania, are racing to deploy SMRS.

In December, Mr Erginbilgic said he flew out to meet Czech prime minister Petr Fiala in order to push forward talks on a possible Rolls-royce SMR in the country, which wants to roll out the technology by 2029.

Rolls is also understood to be in talks with officials from Poland, Sweden, Finland and the Netherlands.

In the UK, the company is the only SMR developer to have reached the second stage of the new generic design assessment process for nuclear reactors, with Mr Erginbilgic arguing this puts it in pole position in the GBN competition. Rival bidders include EDF, Ge-hitachi, Holtec Britain, Nuscale and Westinghouse.

Mr Erginbilgic told The Telegraph: “I have always said I am not lobbying to actually be selected – because on merit, we are going to be selected because we are ahead of everyone else.

“What I am worried about is the pace of the GBN process. I am concerned that they must deliver what they said and stick to the timetable. So as long as that happens then it is fine. But we are also looking at other options.”

It came as Rolls revealed sales of its large aeroplane engines had surged to their highest level in 15 years, helping the engineering giant to post an annual operating profit of £1.6bn last year.

The company, which is in the midst of a major turnaround under Mr Erginbilgic, said it received orders for 700 engines last year.

Debt has also been slashed from £3.2bn to £2bn. Shares in Rolls surged more than 8pc yesterday.

A government spokesman said: “The UK is the most attractive destination for nuclear in Europe and we’re providing certainty for industry to invest here as part of the biggest expansion in 70 years. We will shortly be launching the next phase of our SMR competition.”