By Anders Lorenzen
Best known for its luxury cars featured in James Bond, the UK’s Rolls-Royce company confirms its broad portfolio. They have now won UK government backing for the construction of small nuclear modular reactors (SMRs).
SMRs are championed by billionaire philanthropist, investor and climate change action advocate Bill Gates. They are seen by many techno-optimists as a key technology for quickly scaling up clean energy capacity.
This move comes ahead of a widely anticipated and expansive spending review, announced by the UK Chancellor, Rachel Reeves, this month.
UK government: We are making unprecedented investments in nuclear energy
The UK government has claimed that it is making unprecedented investments in nuclear energy, creating between 10,000 and 15,000 jobs over the next decade.
The move to bolster the UK’s nuclear energy sector also included traditional atomic projects, such as a £14.2 billion investment to build a new 3.2 gigawatt (GW) nuclear reactor, the Sizewell C power station, to be constructed in the county of Suffolk.
While details are limited so far, it is anticipated that the SMR investments will amount to at least three confirmed projects, each with a 470-megawatt (MW) capacity.
SMR projects to deliver a job creation surge
The government announced that it will contribute £2.5 billion to the SMR projects during this spending period. They stated that this will create 3,000 new skilled jobs while powering three million homes with clean energy.
The project will be spearheaded by the government-created energy company ‘Great British Energy’, which will create the spin-off company ‘Great British Energy – Nuclear’.
Later this year, the first SMR site will be allocated, with the anticipated first projects to be connected to the grid in the mid-2030s.
The UK Department for Energy Security and Net Zero (DESNZ) claims that by mid-2030, SMRs, such as Sizewell C, as well as the other nuclear project, Hinkley Point C, will have come online, thus creating more atomic capacity on the grid than over the previous half century.
Betting on an unproven technology
As of today’s date, while several SMR projects are under planning and construction, only one has come online so far: Russia’s floating SMR, Rosatom.
Thus, SMRs are still an unproven technology with several unknown factors.
Uncertain SMR factors
The argument in favour of SMRs is that they are faster to build. However, often when first projects using new designs are being built for the first time, this is not always the case.
Additionally, the economic arguments still need to be proven. Currently, per megawatt (MW), they are still more expensive to construct than traditionally large-scale nuclear projects.
Although the projects are announced simultaneously, the UK government is not confident that they will be constructed earlier than Sizewell C; hence, the rough time frame for the SMR projects and Sizewell C remains the same.
Scale-up potential
It is relatively standard for new technologies to take longer and be more expensive during their initial phases, with offshore wind being a prime example.
The UK government, as well as SMR advocates, would hope that as projects scale up, the cost and construction time decrease rapidly.
The most extensive nuclear programme in a generation
UK’s Energy Secretary, Ed Miliband, said: “We are entering a golden age of nuclear with the biggest building programme in a generation.”
He emphasised that building the country’s first-ever SMRs will create “thousands of jobs and grow our regional economies, while strengthening our energy security.”
Complimenting Miliband’s remarks, Reeves added: “The UK is back where it belongs, taking the lead in the technologies of tomorrow with Rolls-Royce SMR as the preferred partner for this journey.”
Rolls-Royce: A vote of confidence in our nuclear capabilities
Rolls-Royce, which had fought off competition from two US-based rivals, was delighted by the UK announcement. Its CEO, Tufan Erginbilgic, said:
Rolls-Royce: A vote of confidence
“This is a very significant milestone for our business and Rolls-Royce SMR. It is a vote of confidence in our unique nuclear capabilities, which governments around the world will recognise. It is also evidence that the strategic choices we have made in transforming Rolls-Royce are delivering. I believe the value of Rolls-Royce SMR will grow materially from here as we successfully execute and deliver on the potential of this venture.”
Huge SMR potentials
Rolls-Royce believes that there is huge potential for the SMR market, pointing out that the International Energy Agency (IEA) forecasts that global electricity generation will double by 2050.
Rolls-Royce was founded in 1906 and is today a very different company. In 1973, the company split into Rolls-Royce Motors, which included various companies, and Rolls-Royce Limited. The latter, in addition to nuclear innovation, is also an active player in other areas of the energy sector, including various power systems, and is a major player in the aerospace and defence sectors.
Anders Lorenzen is the founding Editor of A greener life, a greener world.
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