Rolls-royce reactors at risk as rivals courted by ministers
THE UK is preparing to invite international bids for next generation nuclear power projects, in a move that could imperil Rolls-royce’s plans to roll out mini-nuke factories across the country.
Insiders fear efforts to run a competitive tender mean Rolls-royce could lose out on a government contract, despite the fact that £210m of taxpayer money has already been invested into the company’s efforts to stand-up small modular reactors (SMRS).
The engineering giant is advancing plans to churn out cheaper, mass-produced, standardised nuclear reactors that would generate carbon-free electricity.
It is now understood that the Government is preparing to host a beauty parade of next generation nuclear proposals from around the world that could ultimately see contracts handed to other companies.
Rolls-royce insiders fear the process could derail its SMR efforts. Executives are concerned that losing the UK Government as a customer could threaten foreign orders, since many could interpret the move as a lack of confidence in the programme.
Rolls-royce SMR has already frozen hiring as it waits for a contract, The Daily Telegraph revealed last month.
Days before the freeze, new Rollsroyce chief executive Tufan Erginbilgic warned that the UK was risking its head start on this technology by dragging its feet.
He said: “We need to come to the table and work very seriously and sign an agreement for the deployment of the first project. First mover advantage will be important.”
As talks with Westminster drag on, Rolls-royce has been holding discussions with the Czech Republic about a deal.
Rolls-royce’s SMR project won the backing of Boris Johnson’s government in November 2021. Mr Johnson, a vocal supporter of nuclear technology as a way to decarbonise the UK’S grid, outlined ambitious plans to build a nuclear plant per year and provided state backing for Rolls-royce.
However, Rishi Sunak has been less enthusiastic. Mr Johnson wrote to him last month, joining 56 other MPS in demanding faster progress on new plants.
Of the £210m committed by taxpayers, almost half has already been handed to the engineer, it is understood. Rolls-royce is among dozens of companies around the world with designs for small, factory-produced reactors. The theory behind massproducing them is that development costs can be spread over many units to lower costs.
Tom Samson, chief executive of Rolls-royce SMR, said: “We have over 600 members of staff in the UK, dedicated to bringing our technology to market at pace – a British solution to a global energy crisis.
“Rolls-royce SMR has called for rapid progress from the Government and we welcome the adoption of that principle in this process.
“We look forward to working collaboratively with government and Great British Nuclear to realise their ambitions as quickly as possible.”
A government spokesman said: “Small modular reactors could play a vital role in our nuclear programme as we work to increase our energy independence and security, reducing our reliance on fossil fuels and exposure to volatile global gas prices.
“The Government is investing in these new technologies through the £385m Advanced Nuclear Fund including £210m towards the Rolls-royce SMR programme. We will announce plans for the set-up of Great British Nuclear soon, and we are committed to backing it with appropriate funding to support projects and investment.”