The United Kingdom is advancing a Small Modular Reactor (SMR) programme, managed by Great British Nuclear (GBN), to meet its future energy demands and achieve net-zero carbon goals by 2050.
SMRs, a smaller and more flexible nuclear technology, promise rapid, scalable nuclear solutions. GBN has shortlisted four companies—Rolls-Royce SMR, GE Hitachi, Holtec, and Westinghouse—to enter final negotiations for contracts, with the first operational SMRs targeted by the mid-2030s.
This move is part of a broader UK strategy to enhance energy security and sustainability through nuclear power, projected to provide 24 gigawatts of capacity by 2050.
SMRs are anticipated to complement the UK’s remaining large-scale plants by offering reliable, low-carbon energy and reducing dependence on foreign energy
In today’s briefing let us explore key information about this program and why it matters.
What happened?
On Monday November 11th, 2024 Great British Nuclear (GBN) announced it entered into final negotiations with four companies—GE Hitachi, Holtec, Rolls-Royce SMR, and Westinghouse—competing to provide Small Modular Reactor (SMR) technology for the UK.
Following an in-depth, multi-phase assessment process, GBN selected these four bidders based on factors like safety, deliverability, and the potential to support a scalable fleet of SMRs across the UK.
The negotiations, set to conclude by spring, will allow each company to submit a final tender, with GBN aiming to select the best technology and terms for the UK’s energy needs.
GBN’s chair, Simon Bowen, highlighted the significance of this stage, indicating that any of the four designs could be crucial in the UK’s shift toward low-carbon energy. SMRs, compact and efficient nuclear reactors, are seen as essential to enhancing energy security and meeting climate goals by 2050.
Pending final selection and regulatory approvals, the winning SMR design(s) could form the foundation of a new fleet of reactors, contributing to the UK’s commitment to sustainable energy solutions.
This programme is part of a larger UK nuclear energy strategy, which aims to supply up to 24 gigawatts of nuclear power by 2050, a mix of both large and small reactors. SMRs, often described as ‘small but mighty,’ typically generate less than 300 MW (with Rolls-Royce’s model slightly larger at 470 MW).
Their smaller size and modular design make them quicker and potentially less costly to build compared to traditional reactors.
Why SMRs matter now
Nuclear power is pivotal to the UK’s commitment to net-zero emissions by 2050, with SMRs playing a special role due to their flexibility, scalability, and potential to serve smaller communities or industries with stable, clean energy.
Unlike traditional reactors, SMRs can be manufactured in parts, assembled off-site, and transported to location, significantly reducing construction time and costs.
This has strong appeal for a country like the UK, where recent large-scale nuclear projects have encountered delays and cost overruns.
Each of the four shortlisted companies brings distinct expertise and experience. For instance, Rolls-Royce SMR’s reactor is a home-grown design, already 18 months ahead in the UK’s regulatory process.
Rolls-Royce CEO Chris Cholerton stated that their position allows them to secure a “first-mover advantage,” especially with recent interest from countries like Sweden and the Czech Republic.
The UK’s push for small modular reactors (SMRs) has roots in its long-standing nuclear expertise, dating back to the post-WWII era.
Britain was among the first countries to deploy civil nuclear reactors, establishing a strong foundation in nuclear engineering and innovation.
However, over recent decades, high costs, construction delays, and public concern about nuclear safety hindered new large-scale reactor projects.
The Final Four Designs
Each shortlisted design has passed rigorous tests, with assessments on safety, deliverability, and compatibility with a scalable fleet model for the UK.
Westinghouse AP300
This design is a compact version of Westinghouse’s established AP1000 technology. Already used in power plants globally, the AP300 is under UK regulatory review and is expected to enter construction by 2030. The company also has a potential customer, Community Nuclear Power, which aims to install four AP300 reactors in North Teeside by the early 2030s.
Rolls-Royce SMR (470 MW)
As the only UK-based contender, Rolls-Royce has designed its SMR with a 60-year lifespan, aiming for a 95% capacity factor. The modular nature of the reactor means it can be built and transported in parts, reducing on-site construction time. Rolls-Royce’s reactor has gained traction internationally and is now in advanced talks to expand in the UK, making it a strong candidate.
GE Hitachi BWRX-300
The BWRX-300 is a boiling water reactor based on GE’s proven designs. It has already seen strong interest from other countries, with Ontario Power Generation set to begin construction of the first unit by 2025. According to GE Hitachi UK Country Leader Andy Champ, the reactor’s “simplified, safer, and scalable design” could be ideal for both UK and international markets.
Holtec SMR-300
Holtec’s entry, the SMR-300, stands out for its innovative passive safety systems, enabling it to handle waste heat with minimal environmental impact.
Backed by investment from the UK’s Future Nuclear Enabling Fund, Holtec aims to establish a manufacturing base in the UK to support the reactor’s rollout.
Its US operations include a project at Michigan’s Palisades Nuclear Plant, where Holtec plans to install two SMR-300 units.
Nuclear plants currently contribute approximately 15% of the UK’s electricity, but with much of the current fleet set to close by 2030, the SMR programme is central to maintaining nuclear’s share of the energy mix.
The broader Civil Nuclear Roadmap published by the UK government in 2024 highlights nuclear energy’s essential role in Britain’s decarbonization goals.
With a target to secure investments worth 3-7 GW every five years from 2030 to 2044, the roadmap envisions a mix of SMRs and larger plants, like those at Hinkley Point C and Sizewell C.
Next steps and potential challenges
Over the coming months, GBN’s negotiations with the four contenders will focus on refining designs, funding structures, and long-term operational goals. Final tenders were submitted in spring, with contract awards anticipated later in 2024.
The complexity of this phase, involving multibillion-pound contracts, will be crucial for both GBN and the chosen vendors to align on a strategy that meets the UK’s energy and economic needs.
While this programme is highly ambitious, there are still hurdles, including regulatory approvals, securing financing, and community engagement at proposed sites like Wylfa and Oldbury.
Furthermore, the Labour government has pledged to support nuclear power but has yet to confirm whether it will uphold the previous administration’s specific targets.
Regardless, the momentum behind SMRs suggests they could become a keystone of the UK’s energy strategy, marrying technological innovation with pressing environmental goals.
As Bowen stated, the SMR programme aims to bring “the best technologies on the best terms” to the UK, with the potential to redefine the landscape of nuclear power for the decades to come.
TALKING POINTS
These points are crafted to spark engaging discussions with your peers, helping you stay ahead of industry shifts, explore fresh perspectives, and drive informed decision-making in your professional circles. Whether you’re networking, meeting with partners, or leading your team, Talkpoints equips you with timely insights to elevate the conversation.
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The SMR programme supports the UK’s commitment to decarbonization and energy independence, with potential to supply up to 25% of its electricity needs by 2050.
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The SMR initiative could boost the UK economy by £100 billion from 2030 to 2050 through job creation, supply chain development, and potential international exports.
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SMRs are easier and quicker to construct than traditional reactors. Their modular nature allows for off-site production, reducing project costs and risks associated with large-scale nuclear facilities.
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By advancing SMR technology, the UK could establish itself as a global leader in nuclear technology. There is a substantial international market, projected to be valued between £250-400 billion by 2035, with demand from countries seeking low-carbon energy solutions.
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A strategic plan for supporting UK-based SMR exports may be beneficial, given the significant projected international demand. Government-backed export funding, market development initiatives, and strategic international partnerships could boost UK SMR visibility and sales globally.
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Ensuring community support and mitigating environmental impacts of SMR sites will be essential for smooth deployment. Initiating early public consultation and environmental assessments could help preempt concerns.
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Developing a robust nuclear strategy encompassing both SMR and large-scale reactors will be important to meet future energy demands. Continuous investment in nuclear R&D, infrastructure, and talent development could sustain nuclear power’s role in a decarbonized energy portfolio.
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Nuclear facilities require top-tier cybersecurity measures to protect critical systems and sensitive data. Businesses specializing in cybersecurity, particularly in infrastructure and industrial systems, can offer essential services to safeguard SMR operations, support compliance, and protect against cyber threats.
The bottom line
As fossil fuel dependency decreases, nuclear power’s role is pivotal in maintaining stable, low-carbon energy. The UK’s strategy has implications for global energy markets, potentially positioning it as an exporter of SMR technology, thus fostering UK jobs, innovation, and GDP growth.
With the expansion of SMRs, engaging and educating communities about nuclear energy will be crucial. Digital platforms can facilitate public awareness campaigns, community consultations, and education initiatives, helping operators build trust and acceptance in local areas where SMRs are deployed.
The nuclear industry increasingly relies on data analytics for predictive maintenance, operational efficiency, and safety. Digital firms specializing in big data, machine learning, or IoT applications could play a critical role in SMR operations, monitoring systems, and predictive analytics to reduce downtime and optimize performance.
Thanks for reading,
Fabrice Iranzi – Founder, Lion Herald
