Proactive Investors - Rolls-Royce Holdings PLC said it welcomed the government’s new commitment to small modular reactors (SMRs) in the UK, especially given it is the only manufacturer.
Chancellor Jeremy Hunt announced financial support for the prospective mini nuclear reactor industry in his spring budget on Wednesday, including a commitment to co-fund projects that get approved.
“Rolls-Royce SMR has called for rapid progress from the government and we welcome the adoption of that principle in this process,” the FTSE 100-listed company told Proactive.
Given Rolls-Royce “is the only SMR technology moving through the UK's regulatory process,” the announcement likely spells good news for the manufacturer.
Rolls-Royce added its SMRs were “a British solution to the global energy crisis,” having previously claimed the reactors could be mainly built in factories with 80% UK-sourced components.
Each is set to cost £1.8bn and provide 470Mw, enough to power 450,000 homes, from a 10-acre site.
Analysts at Allied Market Research anticipate the global small modular reactor market will be worth US$18.8bn by 2030, having been valued at US$3.5bn in 2020, a rise of 437%.
The wider nuclear industry, including larger, more-traditional plants like Sizewell and Hinkley Point, was valued at US$41.1bn in 2020 and is expected to top US$58.4bn by 2030, an increase of 42%.
However, traditional projects are generally much more time-consuming and expensive, with Sizewell C projected to cost between £20bn and £35bn and Hinkley Point £32.7bn, after several delays.
Smaller reactors are an alternative therefore, offering "a realistic possibility of predictable deployment, replication and falling costs," UK Research and Innovation director Rich Deakin said in a February report.
Rolls-Royce is set to be a major player in this, sitting among the few firms globally exploring nuclear-submarine powering tech for use on power grids, including Mitsubishi, Toshiba and General Electric (NYSE:NYSE:GE).
Rolls-Royce shares rose 2% to 146.8p.