Work is to start on the Ƶ’s first nuclear small modular reactors (SMRs) in Wales in an investment promising to create several thousand jobs.
Rolls-Royce SMR and state-owned Great British Energy-Nuclear (GBE-N) are today signing a contract that enables work, both design and on-site, to start immediately on the delivery of three Rolls-Royce SMRs at Wylfa, on the coast of Ynys Môn (). The project’s developer is GBE-N.
In November last year Prime Minister Sir Keir Starmer announced that Wylfa will host the Ƶ’s first SMRs.
The contract allows Rolls-Royce SMR to develop its site-specific design and order critical components from the supply chain. It also gives the certainty required to ramp up its recruitment programme.
Each unit, which will have a life cycle of at least 60 years, will have an ability to generate electricity to power one million homes per year with electricity. Rolls-Royce SMR also has plans to deliver further SMRs at the site, which is next to the proposed Wylfa Newydd nuclear power station project.
Rolls-Royce SMR is also currently evaluating a number of sites across the Ƶ for a new SMR factory, including one at Deeside in . A decision on the selected site is expected later this year.
Rolls-Royce SMR and its supply chain partners will create 3,000 jobs local to the Wylfa site and an additional 5,000 jobs Ƶ-wide. The three SMRs are expected to become operational in the mid 2030s. Rolls-Royce has plans for a fleet of SMR sites across the Ƶ.
As the technology was selected through the GBE-N procurement process, Rolls-Royce SMR was able to apply for a loan on commercial terms from the National Wealth Fund. The lending facility, of up to £599m, is available to support the finalisation of the generic design of Rolls-Royce's SMR.
Chris Cholerton, Rolls-Royce SMR chief executive, 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 Ƶ 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 Ƶ’s energy security and will power up our business and the Ƶ supply chain.”
Chancellor Rachel Reeves, said: “This investment, along with vital financing from the National Wealth Fund, will strengthen our energy security, create skilled jobs and help to build a new generation of homegrown nuclear technology that will power our economy for decades to come.
“We have the right economic plan – one where growth and clean energy go hand in hand – and one that will benefit everyone across the country.”
Secretary of State for Energy Security and Net Zero, Ed Miliband, said: “At a time of global instability, this is a major milestone for Britain’s energy security.
“We are backing a British company to deliver our first small modular reactors - creating a generation of good jobs, driving growth and providing clean, homegrown power for decades to come.
“Our clean energy mission is the only route to getting off the rollercoaster of fossil fuels and take back control of our energy independence.”
Simon Roddy, chief executive of Great British Energy-Nuclear, said: “This agreement is a landmark moment for the nuclear industry. Working with Rolls-Royce SMR, we’re bringing a significant long-term investment to the Ƶ industrial supply chain.
“Supporting skills, innovation and growing our industrial capability is essential to this partnership, and will ensure the Ƶ is well placed to deliver the next generation of nuclear infrastructure.”
Welsh Leader Eluned Morgan said: “Only Welsh Labour is focused on real action to tackle the cost of living and guarantee our energy security. We are also the only party with the ambition and record that will ensure Wales meets its net-zero goals. has already rowed back on their ‘unrealistic’ net-zero target and their divisions on nuclear would put projects like Wylfa at risk. Reform would take us back to the days of coal.
“We have seen time and again how volatile international energy markets can be, including in times of conflict. An Energy Independent Wales would reduce our reliance on unstable markets, helping keep energy bills as low as possible.”
National Wealth Fund CEO, Oliver Holbourn, said, “Today’s announcement marks a significant moment for the future of our nuclear industry. The development of Rolls Royce-SMR’s technology here in the Ƶ will create thousands of jobs and pave the way for an affordable, cleaner, and more secure energy system.
"his is exactly what the National Wealth Fund has been established to deliver, backing promising homegrown projects and technologies that will deliver transformational impacts.”
