Contract signed for delivery of UK's first SMRs

Rolls-Royce SMR was selected as the UK government's preferred technology for the country's first small modular reactor (SMR) project in June last year, and GBP2.6 billion was allocated in the 2025 Spending Review to enable this contract and wider programme delivery.

"Since then, the Great British Energy - Nuclear (GBE-N) and Rolls-Royce SMR teams have worked intensively to finalise the contract, unlocking the next phase of the programme," GBE-N said. "The contract will require Rolls-Royce SMR to work with GBE-N to deliver against key milestones as it commences site-specific design, regulatory engagement, and planning processes, ahead of a future Final Investment Decision."

The agreement allows work to start on site, "through a firm contract allowing Rolls-Royce SMR to develop its site-specific design and order critical components from the supply chain", Rolls-Royce SMR said. "It also gives the certainty required to ramp up its recruitment programme in order to execute this work and successfully deliver the initial three units."

Rolls-Royce SMR Chief Executive Chris Cholerton said: "This contract unlocks the delivery of our first three units at Wylfa and is a tangible example of the Government's 'golden age' of new nuclear being delivered successfully with British technology. This brings certainty to the UK SMR programme and differentiates our business as the only SMR company with multiple commitments in Europe - an initial three units at Wylfa and up to six units in Czechia. We are transforming the way nuclear projects are delivered, to give greater cost and schedule certainty with a standardised, factory-built approach. This project is important to the UK’s energy security and will power up our business and the UK supply chain."

"This agreement is a landmark moment for the nuclear industry," added GBE-N CEO Simon Roddy. "Working with Rolls-Royce SMR, we're bringing a significant long-term investment to the UK industrial supply chain. Supporting skills, innovation and growing our industrial capability is essential to this partnership, and will ensure the UK is well placed to deliver the next generation of nuclear infrastructure."

As the technology selected through the GBE-N procurement process, Rolls-Royce SMR was able to apply for a loan on commercial terms that will be provided by the National Wealth Fund. The National Wealth Fund has now said that the application was successful, and it will provide a facility of up to GBP599 million to support the progression of the generic design of the new SMR technology, with Rolls-Royce SMR having already moved to the third and final stage of the Generic Design Assessment led by the UK's nuclear regulators.

National Wealth Fund CEO Oliver Holbourn said. "The development and deployment of Rolls-Royce SMR's technology here in the UK will create thousands of jobs and pave the way for an affordable, cleaner, and more secure energy system. This is exactly what the National Wealth Fund has been established to deliver, backing promising homegrown projects and technologies that will deliver transformational impacts."

Nuclear is one of the ten sectors identified by the National Wealth Fund in its recent Strategic Plan as offering the most "catalytic" opportunities for investment. The transaction also marks the National Wealth Fund's second financing in nuclear, following its lending to Sizewell C announced in July.

The background

The Rolls-Royce SMR is a 470 MWe design based on a small pressurised water reactor. It will provide consistent baseload generation for at least 60 years. Ninety percent of the SMR - measuring about 16 metres by 4 metres - will be built in factory conditions, limiting activity on-site primarily to assembly of pre-fabricated, pre-tested, modules which significantly reduces project risk and has the potential to drastically shorten build schedules.

In October 2024, Rolls-Royce SMR was selected by ČEZ to deploy up to 3 GW of electricity in the Czech Republic, and ČEZ took at 20% stake in Rolls-Royce SMR.

In November, the government announced that Wylfa on the island of Anglesey, North Wales, will host three Rolls-Royce small modular reactors. It said the site - where a Magnox plant is being decommissioned - could potentially host up to eight SMRs.

On 1 April, GBE-N announced it had signed a GBP300 million contract with an Amentum/Cavendish Nuclear joint venture to serve as the Owner's Engineer to support the deployment of Rolls-Royce SMR’s reactors at Wylfa. The joint venture - Litmus Nuclear - will deliver "independent assurance and expert technical guidance across critical areas, including design, safety, engineering, construction, and commissioning". The agreement has a maximum duration of 14 years and aims to ensure the programme meets all regulatory requirements and help GBE-N to secure a final investment decision for the UK's first SMRs. A final investment decision is expected to be taken in 2029.