Britain's first small modular reactor nuclear power station will be built at Wylfa, on Anglesey/Ynys Mon in North Wales, it has been announced.
The first-of-its-kind project will be built by publicly owned Great British Energy-Nuclear and is backed by £2.5bn investment from the º£½ÇÊÓÆµ government.
It is understood Great British Energy-Nuclear (GBE-N) has been tasked with identifying potential sites for another large-scale nuclear power plant, similar to those being built at Hinkley Point in Somerset and Sizewell in Suffolk.
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It will report back by autumn 2026, and has been requested by Energy Secretary Ed Miliband to consider sites across the º£½ÇÊÓÆµ, including in Scotland, officials said.
But the plans for small modular reactors at Wylfa have prompted an angry response from the US, with ambassador Warren Stephens describing his country as “extremely disappointed” by the decision.
The ambassador had been pushing for a larger reactor at Wylfa, and US firm Westinghouse had reportedly presented plans to the º£½ÇÊÓÆµ Government to build a new gigawatt station at the site.
Mr Stephens said there are “cheaper, faster and already approved options to provide clean, safe energy at this same location”.
He added: “If you want to get shovels in the ground as soon as possible and take a big step in addressing energy prices and availability, there is a different path, and we look forward to decisions soon on large-scale nuclear projects.
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“As I have repeatedly said, we want the º£½ÇÊÓÆµ to be the strongest possible ally to the United States, and high energy costs are an impediment to that,” he said.
It comes after the º£½ÇÊÓÆµ and US agreed a nuclear partnership in September, potentially worth around £76bn.
Small modular reactors (SMR) are mini nuclear power stations which are smaller and designed to be installed on site as prefabricated modules, with hopes the technology will be quicker to build than more traditional plants such as Hinkley Point C.
The Department for Energy Security and Net Zero (DESNZ) said the announcement would support up to 3,000 jobs in the local economy at the height of construction.
And it would allow Wylfa, where previous attempts to bring back nuclear power to the site of a former reactor had failed, to become a “beacon” of a nuclear golden age, the department said.
The º£½ÇÊÓÆµ’s first small modular nuclear reactors, which will – subject to final contract – be designed by Britain’s Rolls-Royce SMR, are expected to generate enough electricity to power three million homes.
Prime Minister Sir Keir Starmer said: “Britain was once a world leader in nuclear power, but years of neglect and inertia has meant places like Anglesey have been let down and left behind.
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“Today, that changes. We’re using all the tools in our armoury – cutting red tape, changing planning laws, and backing growth – to deliver the country’s first SMR in North Wales.
“This government isn’t just reversing decline, it’s delivering thousands of future-proofed jobs, driving billions in investment, and providing cheaper energy bills in the long term.”
Mr Miliband said nuclear power and other clean energy, such as renewables, offered the chance of “energy sovereignty and energy abundance” which “every sensible nation needs in the 21st century”.
Writing in The Daily Telegraph, he said: “Oil and gas from the North Sea will continue to play a role for decades to come, but now is the time to build up our clean power resources.
“I firmly believe that we cannot have a safe, prosperous country without the sovereignty and abundance that clean energy brings.”
First Minister of Wales Eluned Morgan added: “This is the moment Ynys Mon and the whole of Wales has been waiting for.
“New nuclear is a step into the future with secure jobs and secure energy guaranteed for the next generation.”
The Energy Department said GBE-N will start activity on the site in 2026, with an initial project for three reactors, but the site could potentially hold up to eight of the mini power plants.
It is hoped the Wylfa reactors will start supplying power to the grid from the mid-2030s.
Officials also said there would be export opportunities for SMRs, and potential for new nuclear at the former site of Oldbury, in Gloucestershire, owned by GBE-N.