Rolls-royce freezes hiring on mini-nuclear team as it awaits deal

ROLLS-ROYCE’S nuclear power business has frozen hiring as it demands a contract from the Government for its pioneering miniature reactors.

The division – which employs about 600 people – has put all recruitment on pause until it secures a contract for its pioneering small modular reactors (SMRS), which will each be capable of producing enough power for 1m homes at a cost of just £1.8bn apiece. The move comes after Tufan Erginbilgic, Rolls’ new chief executive, warned that Britain was losing its edge as a leading developer of the technology amid footdragging by ministers.

He has urged the Government to “come to the table” and agree to buy some of the units, which are smaller than existing power stations and cheaper to build, with factory-produced parts. Without a UK order, the project is unlikely to get the business from abroad it needs, he said. Rollsroyce SMR has ramped up hiring from 100 to 600 people in the past year, but insiders say the business is now in limbo until a sale is made.

Mr Erginbilgic said yesterday: “We need to come to the table and work very seriously and sign an agreement for the deployment of the first project. Firstmover advantage will be important.”

Rolls raised money for its SMR venture by bringing in external investors including the French billionaire Perrodo family, who made their fortune from private oil company Perenco; Qatar’s sovereign wealth fund; and US nuclear business Exelon Generation. It also received £210m of taxpayer funding. However, dozens of companies are developing mini-reactors – including big names such as GE Hitachi, which last month signed a deal to build the first SMR in North America in a deal with authorities in Ontario, Canada.

A Rolls-royce SMR spokesman said: “Rolls-royce SMR is making great progress towards its goal of deploying a fleet of factory-built power stations.

“A positive demand signal from government will show commitment to the UK’S sovereign nuclear technology and to addressing future energy security, while delivering against its netzero commitments.”

A government spokesman said: “Putin’s weaponisation of energy has shown how vital UK energy security is and nuclear sits at the heart of achieving our energy independence.

“The Government is investing in these new technologies through the £385m Advanced Nuclear Fund, including £210m towards the Rollsroyce SMR programme.”