Introduction
With the UK government aiming to generate up to 24 GW of nuclear power by 2050, Great British Nuclear (GBN) which was established (in July 2024) under the Energy Act 2023 (the Act) is at the forefront of driving innovation and investment in the nuclear sector. The Act empowers the Secretary of State to provide financial assistance to GBN, crucial for co-funding technologies through their development.
Achievements over the Past Year
Role of SMRs and AMRs
Under the Act, GBN was tasked with leading the competitive process to select the best small modular reactor (SMR) technologies for investment. SMRs are advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, which is about one-third of the generating capacity of traditional large-scale reactors (they can largely be manufactured off site and generally fit on less than half of a standard football pitch).
SMRs are therefore seen as a key component in the future energy mix due to their potential for lower costs, enhanced safety, and quicker deployment compared to traditional large-scale reactors. This process began in April 2023.
Nuclear Inter Jura Congress
Earlier this month our Warsaw office and DWF’s Global Energy Team attended the 25th Nuclear Inter Jura Congress in Poland, where international SMR development was a key discussion point, with the Office for Nuclear Regulation (the UK nuclear regulator) indicating that there is now increasing international cooperation amongst regulators on SMR design acceptance. And, during the Congress it was again reiterated that SMRs are covered by the key international nuclear liability conventions, however it still remains unclear whether lower limits of liability might apply for SMRs.
SMR Technology Development Contracts
GBN has advanced the SMR technology selection process, allowing six companies to access tender documentation for potentially multi-billion-pound technology development contracts. This process is aimed at delivering cutting-edge nuclear technology by the mid-2030s.
Shortlisted Companies
The companies shortlisted for the next stage include:
- GE-Hitachi Nuclear Energy International LLC
- Holtec Britain Ltd
- Rolls Royce SMR Ltd
- Westinghouse Electric Company UK Ltd
- EDF Energy
- NuScale Power
Down-select
With EDF and NuScale dropping out, the competition is now down to four finalists with a decision expected to come before the end of the year or at the latest in the Spring, with GBN expected to down-select to two companies.
Next Steps
GBN published its Great British Nuclear Commercial Pipeline document on 28 October 2024 which details five areas where, in total, it intends to spend up to £1.1bn on services needed for the delivery of its SMR program. With the highest value contract being for the project delivery partner, with an estimated value of £600m-£800m over 10 years, with procurement estimated to start on 1 July 2025.
The goal is to achieve a final investment decision by 2029 and have the technologies operational by the mid-2030s.
Benefits of SMR Deployment
The progress made by GBN is a significant step towards revitalising the UK’s nuclear sector. The selection and deployment of SMRs are expected to provide several benefits:
- Enhanced Energy Security – By diversifying the energy mix and reducing reliance on fossil fuels, SMRs will play a crucial role in ensuring a stable and secure energy supply.
- Economic Growth – The development and deployment of SMRs are expected to create numerous jobs and stimulate economic growth, particularly in regions hosting new nuclear projects.
- Environmental Benefits – SMRs offer a low-carbon energy solution, contributing to the UK’s net-zero targets.
Other Achievements
Strategic Site Acquisitions
In June 2024, GBN closed on the acquisition of strategic sites for nuclear development, acquiring land from Hitachi at Wylfa in Anglesey and Oldbury-on-Severn in Gloucestershire. These sites have a long history of hosting nuclear facilities.
Civil Nuclear Roadmap
The publication of the Civil Nuclear Roadmap in January 2024 outlined the previous government’s vision for achieving energy security and net-zero emissions and with cross party support the roadmap remains applicable. The roadmap provides a comprehensive plan for the development and deployment of nuclear technologies. It sets out key milestones, regulatory frameworks, and investment strategies to ensure the successful implementation of nuclear projects. The roadmap aims to boost the UK’s energy security and achieve net-zero carbon emissions, with up to a quarter of Britain’s energy produced from nuclear power by 2050.
Great British Energy
The new Labour government has recognised the importance of SMRs and expressed support for new nuclear as part of its Great British Energy (GBE) plan, with Labour indicating they expect GBE to absorb the functions of GBN to accelerate delivery.
High-Tech Nuclear Fuel Programme
Launched in January 2024, this £300 million investment aims to produce high-assay low-enriched uranium (HALEU) domestically, reducing reliance on imports.
Conclusion
With GBN's strategic investments, innovative technologies, and robust regulatory support, investors and stakeholders in the energy sector should closely monitor GBN’s developments and the opportunities they present for driving the UK’s clean energy transition.
Please get in touch if you would like advice on the Energy Act 2023, or if you would like to discuss the opportunities arising from GBN.
We would like to thank Humera Harroon for her contribution to this article.
