Rolls-Royce SMR to receive major financial backing from UK wealth fund

Following on from Rolls-Royce SMR being named as the preferred technology company in the Great British Nuclear SMR competition, the company is reported to have secured up to £600 million ($805 million) intended to back development of SMRs, or small modular reactors.

The cash will come from Britain’s national wealth fund, which is based in Leeds, UK. Launched in 2024, the fund primarily invests in clean energy and other growth industries. While funded by the UK Treasury, the fund operates independently from the government.

Simon Bowen, Chair of Great British Energy - Nuclear, said: “This is an immense moment for the UK nuclear programme, our organisation, and the industry as a whole.

Concept image of an SMR installation (Photo: Rolls-Royce Power Systems)

“Today represents a true recognition of the efforts made across GBE-N, Rolls-Royce SMR and government to get to this point, and I’m hugely proud of the team for reaching this critical milestone.”

Money received will support the design of small modular reactors at Wylfa, a former nuclear site on the island of Anglesey in Wales.

Wylfa generated nuclear power from 1971 to 2015. Hitachi had planned to build a new reactor on the site, but funding was never agreed. The state-owned Great British Energy – Nuclear (GBE-N) group bought the site from Hitachi in 2024.

Work will immediately start on development of the SMRs, part of the UK government’s clean energy mission. The contract will require Rolls-Royce SMR to work with GBE-N to deliver against key milestones as it commences site-specific design, regulatory engagement and planning processes, ahead of a future final investment decision.

It is forecast the project could support around 3,000 jobs, with many more crated across the related supply chains.

Speaking about the financing deal, Energy Secretary, 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 taking back control of our energy independence.”