Rolls-Royce Wins UK Nuclear Reactor Contract
Rolls-Royce has won a major UK nuclear reactor deal, being named on 10 June 2025 as the preferred developer of the country’s first small modular reactors (SMRs). The engineering firm beat two US-owned competitors in a lengthy competition run by state-backed Great British Energy – Nuclear (GBE-N), formerly Great British Nuclear (GBN), and before that, British Nuclear Fuels Limited (BNFL), a nuclear energy and fuels company owned by the UK Government. This move fits into a wider government push to expand nuclear power as ministers pledged about £2.5 billion ($3.375 billion) to kick-start the SMR programme and around £14.2 billion ($19.17 billion) to help fund the large Sizewell C plant in Suffolk. Britain is positioning itself for a ‘nuclear renaissance’ as it is using domestic technology for cleaner, homegrown power generation.
Small modular reactors are compact nuclear units (roughly the size of two football pitches) built from factory-made modules. This design lets builders assemble plants faster and cheaper than with traditional reactors. Under the plan, Rolls-Royce SMR will build three 470 MW units, totaling about 1.5 GW of capacity. By comparison, Sizewell C (the government’s flagship project) will deliver about 3.2 GW, which is enough to power some six million homes. Factory-built SMRs should help avoid the overruns seen on projects like Hinkley Point C and give Britain a more flexible way to add nuclear energy to the grid.
The deal is also viewed as a boost for jobs and energy security. Officials say the SMR programme could support roughly 3,000 construction jobs and eventually power around three million homes. Energy Secretary Ed Miliband hailed the project as “huge for energy security” and a major opportunity for Britain. These reactors could be sited at existing nuclear sites (for example, retired plants at Oldbury or Wylfa are possible candidates) to make use of established infrastructure. The UK will award the final contracts and sites later this year, subject to regulatory approval.
Rolls-Royce is well-placed for this role. The company, best known for aircraft engines, already builds the power systems for Britain’s nuclear submarines. Chief Executive Tufan Erginbilgic called the SMR award a “very significant milestone” for the company’s nuclear division. Rolls-Royce expects its first small reactor to be generating electricity by around 2032. The UK government’s decision is seen as a vote of confidence in British manufacturing and a strategic step towards a new era of nuclear power, boosting economic growth, energy independence, and national security.