The UK government has announced a £16.7bn commitment to nuclear engineering projects, marking the most extensive nuclear construction program in a generation. The investment encompasses two major initiatives: £14.2 billion for the Sizewell C power station and over £2.5 billion for small modular reactor (SMR) development, with Rolls-Royce SMR selected as the preferred technology provider.
Chancellor Rachel Reeves confirmed the substantial nuclear investment as part of the government’s spending review, representing a shift toward large-scale nuclear engineering deployment. The funding allocation targets both proven pressurised water reactor technology and emerging small modular reactor (SMR) designs, positioning the UK as a testing ground for next-generation atomic systems.
Energy Secretary Ed Miliband emphasised the strategic importance of nuclear baseload capacity for energy security, stating the initiative addresses decades of underinvestment in atomic infrastructure. The program aims to deliver more nuclear capacity to the grid than achieved in the previous half-century if construction schedules are met.
The Sizewell C project will construct a 3.2 GW dual-reactor facility utilising European Pressurised Reactor (EPR) technology. Located adjacent to the existing Sizewell B station in Suffolk, the plant replicates the design and operational framework of Hinkley Point C to reduce engineering complexity and construction costs.
The project is expected to support 70,000 jobs during construction, including 7,900 positions in Suffolk. Engineering, procurement, and construction contracts will leverage the supply chain expertise developed during Hinkley Point C construction, potentially reducing the £20 billion total project cost through standardised components and proven construction methodologies.
Great British Energy selected Rolls-Royce SMR as the preferred bidder following a two-year competitive procurement process. The selection represents the first major SMR deployment decision in Europe, with technical assessment focusing on reactor design maturity, regulatory compliance, and manufacturing scalability.
Rolls-Royce SMR’s design utilises pressurised water reactor technology, scaled to produce 470 MW of electrical output per unit. The modular approach enables the factory-based manufacturing of reactor components, followed by site assembly, which potentially reduces construction timelines and quality control challenges compared to traditional on-site construction methods.
SMR Technical Parameters:
- Unit capacity: 470MW electrical per reactor
- Design life: 60+ years operational period
- Manufacturing approach: Factory-built modules for site assembly
- Deployment target: Mid-2030s grid connection
- Initial deployment: Three units planned for UK installation
The technology competes against international SMR designs from US-based Holtec and GE Hitachi, with Rolls-Royce maintaining an 18-month regulatory assessment advantage through the UK’s Generic Design Assessment process.
SMR deployment faces significant engineering challenges despite the mature pressurised water reactor technology base. The factory manufacturing of reactor pressure vessels, steam generators, and containment structures requires specialised facilities and quality assurance protocols adapted from traditional nuclear construction practices.
The modular construction approach aims to address cost overruns and schedule delays that have affected large-scale nuclear projects. However, no SMR facility has achieved commercial operation globally, making performance predictions speculative until operational data becomes available.
The government targets 70% UK content for SMR supply chains; however, pressure vessel manufacturing will utilise international suppliers due to domestic capacity limitations. This supply chain distribution reflects current nuclear manufacturing capabilities and strategic component sourcing requirements.
The combined nuclear investment could support up to 73,000 jobs at peak construction phases, with 3,000 positions specifically linked to SMR development and manufacturing. Regional economic impacts will concentrate in Suffolk for Sizewell C and potentially distributed across former nuclear sites for SMR deployment.
International market projections suggest that the global SMR sector could reach £500 billion by 2050, according to International Energy Agency analysis. If the UK program succeeds, early deployment experience could position British nuclear engineering firms for export opportunities in developing SMR markets.
Rolls-Royce shares increased 2.4% following the announcement, reaching record valuations and reinforcing the company’s position as the UK’s largest manufacturer by market capitalisation. The SMR program represents a significant component of the company’s nuclear division expansion strategy.
SMR deployment requires completion of the Generic Design Assessment process administered by the Office for Nuclear Regulation and Environment Agency. Rolls-Royce SMR is currently progressing through the final assessment stages, with regulatory approval required before construction authorisation can be granted.
Site selection for the first three SMR units is expected to occur later in 2025, with a preference for locations at former nuclear facilities, such as Oldbury in Gloucestershire and Wylfa in Wales. These sites offer existing atomic infrastructure and established community acceptance, which can accelerate development timelines.
Construction schedules target mid-2030s operational dates for both Sizewell C and initial SMR deployments. However, nuclear construction timelines have historically extended beyond initial projections, making actual commissioning dates dependent on the speed of regulatory approval and the execution of construction.
If the integrated nuclear program succeeds, the UK will operate the most diverse nuclear fleet in Europe, combining operational Advanced Gas-cooled Reactors, new EPR technology at Hinkley Point C and Sizewell C, and multiple SMR units across distributed sites. This technological diversity could provide valuable operational data for future nuclear engineering developments, though it also creates complex grid integration and maintenance requirements.
TLDR
• UK government commits £16.7bn to nuclear engineering projects, including Sizewell C (£14.2bn) and SMR development (£2.5bn)
• Rolls-Royce SMR selected as the preferred technology provider for three 470MW modular reactors targeting mid-2030s deployment
• Sizewell C will deliver 3.2GW capacity using proven EPR technology, supporting 70,000 construction jobs
• SMR program represents the first major European deployment of factory-built nuclear modules with 60+ year operational life
• Combined projects could position the UK as a leader in next-generation nuclear engineering if technical and schedule targets are achieved
• International SMR market projected to reach £500bn by 2050, offering export opportunities for British nuclear engineering firms
