Reactor deal gets Australia’s AUKUS submarine project up and running
Australia will spend more than A$4.6 billion (NZ$5b) on a submarine nuclear reactor factory in the United Kingdom to ensure its new nuclear-powered fleet arrives on time.
The 10-year deal will boost capacity at the Rolls-Royce factory in Derby and bankroll the design costs of the boats that Australia will build.
Defence Minister Richard Marles and his UK counterpart Grant Shapps confirmed that BAE Systems will build the submarines at the Osborne shipyard in Adelaide.
At least A$2b (NZ$2.17b) has already been allocated to build a submarine construction yard at Osborne, and at least A$30b (NZ$32.6b) will go towards propping up Australia’s industrial base over the next three decades.
Marles remains confident that the Virginia-class submarines will be ready by the early 2040s, after visiting the Derby facility in 2023.
“We’re already seeing it readying itself to build the Australian reactors there,” he told ABC radio yesterday.
“There are parts that are being made right now which will be on the submarine that rolls off the production line in Osborne in the early 2040s.”
The Australian Submarine Corporation will work with American and British firms to bolster its ability to sustain and operate nuclear-powered submarines.
Australia will acquire at least three American nuclear submarines from the early 2030s under the AUKUS agreement, which includes the UK and the United States.
“This is not a normal procurement. We are not going off to a shop to buy an item,” Marles said.
“This is a partnership between three governments, which is intended to last forever, and a partnership which will involve the most developed industrial production line in our country.”
Shapps defended the costs, saying the complicated programme would create thousands of jobs over decades.
“Nuclear-powered submarines are not cheap, but we live in a much more dangerous world where we are seeing a much more assertive ... China,” he said.
“We live in a much more dangerous world all around, with what’s happening in the Middle East and Europe, and countries need to invest in making sure that adversaries see that we’re serious about our security.”
Opposition leader Peter Dutton lauded the submarine deal and the AUKUS alliance, which was formed under the previous government. “It’s a great thing that the government has committed to undertaking AUKUS ... it will underpin our security for generations to come,” he told Today. “It makes us a safer country.”
Australia will build the submarines in Adelaide but the nuclear reactors used for their propulsion will be built by RollsRoyce in the UK, as foreshadowed.
The submarines will be built from a UK design with input from the AUKUS nations, and will have a US weapons system embedded.
Pilot programmes include non-destructive testing traineeships to boost the number of testing technicians, welding and fabrication initiatives, and international placements.
The UK defence and foreign ministers are in Australia this week for talks with their government counterparts in Adelaide as part of an annual gathering.
The reactor deal comes after months of negotiations, and was described by Britain’s Ministry of Defence as a “monumental success for British industry”.
Nuclear-powered submarines are quieter than diesel-powered ones, and can spend more time at sea and travel greater distances. They could be used to sit outside a port, track movements, keep an eye on undersea cables, and follow other submarines.
BAE is already building the next generation of British nuclear-powered submarines to replace Astute-class vessels. They are expected to enter service in the 2030s.
– AAP