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Gloucestershire Business News

ANALYSIS: Rolls-Royce pulls plug on £200m SMR project

In a move that looks likely to signal a delay for Berkeley's hopes to become a key site in a 2030s nuclear renaissance, Rolls-Royce has mothballed a plan for a factory that is pivotal to the governent's strategy.

Blaming ongoing delay from the government, Rolls-Royce offshoot, Rolls-Royce SMR, is reported to have spiked its plans for one of two factories that were seen as pivotal for progressing a new chapter in nuclear energy for the UK.

Rolls-Royce had proposed two factories for the realisation of small modular reactor plans, but now says time constraints give the firm no option but to shelve a planned £200m pressure vessel manufacturing facility, which was pencilled for a location in Sunderland or Deeside, North Wales.

WIth the government seeking SMR activation by the 2030s, Rolls-Royce said time had run out to build the factory and create the required pressure vessels ahead of the government's target.

To date, the government has made up to £210m available for the development of reactor designs, but Rolls Royce's move to mothball a factory in its bid came amid frustration at GMB pushing back a decision on where the first SMRs would be built until the end of this year.

Rolls-Royce SMR said: "Our efforts are focused on identifying the best site to support our deployment at pace."

With the firm's plan B to procure heavy-pressure vessels from third-party suppliers, it is understood that a second intended factory for assembling the SMRs remains on track.

With around 40 SMRs planned for the UK, Rolls-Royce's move will add further uncertainty to a fledgling industry which, as yet, has no signed-off specification for the promised technology, although modelling shows the design can produce 200MW of heat and steam, as well as 80MW of electricity.

Back in October, Great British Nuclear (GBN), the government body tasked with driving SMR plans, revealed Rolls-Royce was among six finalists to get through the first stage of a competition to provide SMR prototype designs.

At the time, GBN said: "Companies will be invited to bid for government contracts later this year with successful companies announced in spring next year and contracts awarded in summer."

GBN added: "SMRs could transform how nuclear power stations are built and result in billions of pounds of investment in the UK."

However, industry reports elsewhere suggest Rolls-Royce could revisit plans for a pressure vessel factory in the future, if its order book inspires confidence.

In reaction to the news, the Department for Energy Security and Net Zero said that the SMR competition was "world leading" and "aims to be the fastest of its kind, helping secure billions in investment for the UK, meaning cleaner, cheaper and more secure energy in the long term."

Successful bidders for the scheme, they added, would be announced by the end of 2024.

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