UK Gov’t Taps Rolls-Royce for Three 480 MW PWRs at Wylfa
Washington Expresses Disappointment Over Selection of Rolls-Royce
Italy’s Newcleo Shift Gears to Focus on the U.S.Market
Oklo Gets DOE Approval of Fuel Fabrication Safety Milestone
NIA Updates Reports on Who’s Who in Advanced Reactors and How They Work
LucidCatalyst Study Shows Significant Potential Markets for SMRs
Affordable Financing For Nuclear Projects is the Missing Link for Success
UK Gov’t Taps Rolls-Royce for Three 480 MW PWRs at Wylfa
North Wales site chosen ahead of Oldbury in England for three Rolls-Royce reactors
(NucNet contributed to this report ) The UK has chosen the island of Anglesey off the Welsh coast to host Britain’s first small modular reactors, designed by Rolls-Royce. Each PWR type unit can produce 480 MWe of power for a total of 1,440 MW or nearly the equivalent of one of the 1,650 MW EPRs being built by EDF at the Hinkley Point C and Sizewell C sites.
Roll-Royce said that most of the reactor’s components will be built in “factory production” environments. According to the firm, they will be assembled into the completed reactor on-site. The effects of these plans will be to significantly reduces project risk and shorten build schedules. The Rolls-Royce SMR is expected to have a 60 year service life.
The Wylfa decision marks a major step forward for Britain’s nascent SMR industry, which the government hopes can help replace the UK’s fleet of large, ageing nuclear power plants. Nuclear currently supplies about 14% of the UK’s electricity.
In a statement the government said North Wales will become a beacon in the “golden age” of nuclear, delivering the UK’s first three SMRs at the Wylfa nuclear site in the north of the island, choosing it instead of a site at Oldbury in Gloucestershire, southwest England.
The island of Anglesey is located about 90 miles west of Liverpool, U.K.
The government also announced that Great British Energy-Nuclear (GBE-N), the body overseeing new nuclear in the UK, has been tasked with identifying suitable sites that could potentially host new large-scale reactors.
GBE-N will report back by autumn 2026 on potential sites. The energy secretary, Ed Milliband, has requested this includes sites across the UK including Scotland, where the devolved Scottish National Party government is opposed to nuclear.
Any large-scale project would be similar in scale to the Hinkley Point C or Sizewell C projects, with the potential to power the equivalent of six million homes. This implies a requirement for 3.7 GWe of 24×7/365 electrical generation capacity.
The Wylfa decision marks a major step forward for Britain’s nascent SMR industry, which the government hopes can help replace the UK’s fleet of large, ageing nuclear power plants. Nuclear energy currently supplies about 14% of the UK’s electricity.
Decision ‘Rights The Wrongs’ Of Previous Failures
The government said the confirmation of Wylfa as the host site rights the wrongs of previous failure to bring new nuclear power to North Wales.
In March 2024, GBE-N bought the Wylfa and Oldbury sites from Hitachi Ltd for £160 million ($201 million). Both sites house shut-down Magnox nuclear plants and had been intended for deployment of large Hitachi advanced boiling water (BWR)reactor technology by the then Hitachi-subsidiary Horizon Nuclear Power.
However, the Horizon Wylfa project was abandoned by Hitachi in early 2019 due to cost pressures and because of corporate concerns about the financial terms offered by the U.K. government. Hitachi wrote off £2.1 billion in the process. Plans for Oldbury were dropped in 2020.
The Wylfa and Oldbury projects were each expected to host twin Hitachi 1,350 MW ABWRs for a total of 5.4 GW of electrical generation capacity or 145% of the combined power expected to be generated by the two EDF reactors now under construction. The cancellation of theses projects revealed fundamental weaknesses in the ability of the UK government to address the nation’s energy security needs.
In March 2024, the government announced that an agreement had been reached to buy the Hitachi-owned sites for new nuclear at Wylfa and at Oldbury-on-Severn in southwest England. At the time, the government said said the two sites were expected to be selected for new nuclear energy projects.
Tom Greatrex, Chief Executive of the Nuclear Industry Association, said, “Bringing nuclear back to Wylfa is a historic moment for Wales and for the UK’s clean energy future. Wylfa’s revival offers a once-in-a-generation opportunity to deliver clean, reliable power for decades to come, create thousands of skilled jobs, attract major investment, and revitalize North Wales’s proud industrial heritage.”
Potential for Further Domestic New Builds and Exports
The U.K. government also said in its press statement there is “strong export potential” for small modular reactors, after the UK and Czechia signed a deal to cooperate on civil nuclear. It comes after Rolls-Royce SMR and Czechia’s largest public company, CEZ, agreed last year to partner on SMRs, with CEZ acquiring a 20% stake. Rolls-Royce has said it has proposed building six of its SMRs in that country.
Great British Energy-Nuclear also owns the Oldbury nuclear site near Gloucester. As a site which has previously hosted a nuclear power station, it also has great potential for new nuclear, including the potential to support the privately-led projects being developed by the nuclear industry. Earlier this year the government announced a shake-up of planning rules to allow new nuclear projects including SMRs to be built in a range of sites across England and Wales including Wlyfa and Oldbury.
The Oldbury Nuclear Site, home to two of the UK’s oldest nuclear reactors that were commissoined in 1967, is 131 miles due west of London. The 217 MW Magnox reactors are now shut down and in the hands of the Nuclear Decommissioning Authority.
Separately, the government said it was planning to develop additional large nuclear power stations like Sizewell and Hinkley Point. The government plans to report on potential sites for gigawatt-scale reactors through Great British Energy in the near future.
Sites under consideration right now include Torness east of Edinburgh and Hunterston west of Glasgow. Westinghouse could position itself as a candidate for these future projects offering its 1,150 MW AP1000 PWR, particularly given the diplomatic pressure from the U.S. (See next story)
Funding Plans and Investors
Rolls-Royce’s SMR deal is subject to final government approvals and contract signature, expected later this year. The government has pledged £2.5 billion of funding for SMRs for the startup phase of the project o help Rolls-Royce develop three 480-MW reactors.
At $9,000/kw, each 480 MW unit would cost $4.3 billion and all three would cost $12.9 billion. The actual costs are still unknown as it will be several years before any of the units pours first concrete.
This is about 20% of the total expected cost of the three SMRs. The 80% of the cost will have to be funded by private investors. Also, Rolls-Royce may able to convince the government to authorize it to use the Regulated Asset Base method (RAB).
Under the RAB model, consumers contribute to the cost of new nuclear power projects during the construction phase – but overall the UK government estimatesconsumers are expected to save more than £30 billion over the project’s lifetime on each new large-scale nuclear power station compared with existing funding mechanisms.
Initial contributions will give private investors greater certainty through a lower and more reliable rate of return in the early stages of a project, lowering the cost of financing it, and ultimately helping reduce consumer electricity bills.
The New York Times, in its reports about the Rolls Royce decision, noted that the firm has secured investments from the Qatar Investment Authority, the Persian Gulf emirate’s sovereign wealth fund; Constellation, an American utility; and a 20% equity stakje by CEZ, the Czech Republic’s power company.
The RAB model will reduce the UK’s reliance on overseas developers for financing new nuclear projects by substantially increasing the pool of private investors to include British pension funds, insurers and other domestic institutional investors. The UK bought out China’s investment in the Sizewell C reactor project due to “security concerns.”
If the firm completes the licensing process for the SMR in 2026, as currently scheduled. first concrete could be poured as early as 2027. With a four year constuction timeline, the first unit could be in revenue service, providing returns to investors, by 2031.
Licensing the Rolls-Royce SMR in the UK
In 2022 Rolls-Royce began the U.K.’s licensing process, known as the generic design assessment, which is a three step process carried out by the Office of Nuclear Regulation (ONR). The firm completed Step 2 of the GDA assessment in July 2024 using the 2019 reactor design data.
Successful completion of the GDA culminates in the issue of a Design Acceptance Confirmation from the ONR and acceptance of an environmental review. Step 3 is expected to be completed in August 2026 for a total duration of 53 months.
The costly and complex process can take three-to-five years to complete depending on how well the applicant is prepared to meet the highly prescriptive requirement of the process. This timeline means that the earliest Roll-Royce could break ground would be the 2028/2029 timeframe. It is unknown what the cost of the reactors are likely to be by then. Rolls-Royce told the BBC it plans to have the first unit in revenue service by the early 2030s. These dates suggest a four-year construction timeline.
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Washington Expresses Disappointment Over Selection of Rolls-Royce
The decision to choose Rolls-Royce over its U.S. competitor Westinghouse Electric Company has drawn unusual and sharp criticism from Washington. Warren Stephens, the US Ambassador to the UK, published a statement ahead of the UK announcement expressing his disappointment with the news. The text of the complaint goes far beyond the expected boundaries of diplomatic notes between allies.
“We are extremely disappointed by this decision, not least because there are cheaper, faster and already-approved options to provide clean, safe energy at this same location.”
The ambassador’s unprecedented remarks suggested that Britain should choose “a different path” in Wales. What he is focused on its the full size AP1000 at 1,150 MW and not SMRs.
Stephens said: “If you want to get shovels in the ground as soon as possible and take a big step in addressing energy prices and availability, there is a different path, and we look forward to decisions soon on large-scale nuclear projects.”
“As I have repeatedly said, we want the UK to be the strongest possible ally to the United States, and high energy costs are an impediment to that,” Stephens added.
His statement gave no details of alternatives proposed by the US but it given that the Westinghouse offering is the only large reactor, that has been built elsewhere (China and U.S) that could be provided.
The UK announcement awarding the contract to Rolls-Royce appears to have caught Washington off guard, particularly given the nuclear pact the two countries made during Trump’s state visit earlier in the autumn.
The deal focused on cutting red tape in the licensing of both SMRs and full size reactors. Interestingly, that agreement cited X-Energy which is a a U.S. developer of an advanced SMR based on an 80 MW HTGR SMR design that will use TRISO HALEU enriched nuclear fuel.
A U.K. government spokesperson defended the decision to award the contract to Rolls-Royce as the right one for the UK.
“This is the right choice for Britain. This is our flagship SMR program, producing homegrown clean power with a British company and we have chosen the best site for it,” the source told The Guardian. More to the point, the selection of Rolls-Royce preserves the firm’s capability to manufacture and maintain the Royal Navy’s fleet of nuclear powered submarines and surface ships.
It follows that the UK government selected Rolls-Royce for a combination of reasons having to do with energy security and national security. The US government cannot have been blind to these imperatives. It follows that the ambassador’s comments on UK internal affairs were directed by a White House reaction with an assist from industry lobbying.
Does the Westinghouse AP300 Have a Future in the UK?
It is clear that Ambassador Stephens was referring to the Westinghouse AP1000, an 1,150 MW PWR. However, the firm already has an early stage foothold in the UK for the AP300, its 300 MW SMR, which is a downsized version of the AP1000.
In February 2024 Westinghouse scored a win for its marketing efforts in the UK with an non-binding agreement in principle to build four 300 MW AP300 small modular reactors, for a total of 1.2 GW, in a privately funded project in an industrial region of the UK.
The firm has not publicly disclosed the names of its investors for the project but they are assumed to be industries in the region who want electrical power and are impatient with the glacial pace of government decision making in siting new reactors.
In a press statement the firm said, “Westinghouse Electric Company announced that it has signed an agreement with Community Nuclear Power, Ltd. (CNP) that puts it on track to deploy the UK’s first privately-financed small modular reactor fleet, with the Westinghouse AP300 SMR.”
The new power station will be sited at Seal Sands, a former chemical works. The plant closed on November 2021. Located on the shore of the Tees river, the proposed SMR plant site is adjacent to a Conoco Oil facility and upriver from an ecological reserve.
The North Teesside region of Northeast England, Middlesbrough, is located on England’s North Sea coast, 260 miles due north of London. Iron and steel have dominated the industry of both Middlesbrough and the Teesside area from the 1840s. Teesside had also become one of the major steel centers in the country, and one of the largest worldwide. Industrial decline in recent years has hampered economic development in the region.
Ship building and coal mining have also been major industries in the region. All of these industries would be logical customers in terms of offering robust demand for electricity and decarbonization of power intensive manufacturing processes. New, reliable power sources, which provide carbon free electricity, would be attractive incentives for new industry to move to the region.
Prospects for the AP300 in the U.S., as well as for the U.K., are uncertain due to the development timeline for it extending to 2030. Earlier this year, the project’s Chief Technology Officer, Rita Baranwal, jumped ship to sign on with Radient Nuclear, a developer of a micro reactor. The firm has a deal to deliver one of its units to the US Air Force and was recently named as one of ten micro reactor developers to participate in the Department of Energy’s Advanced Reactor Pilot Program.
Elsewhere, Westinghose has a non-binding MOU for the selection and deployment of Westinghouse technology for nuclear new build projects in New Brunswick for both grid power and dedicated industrial purposes. In 2023 Westinghouse began discussions with Ukraine to consider its AP300. In August 2024 Westinghouse was approved to submit its AP300 to the Generic Design Assessment process at the UK Office of Nuclear Regulation.
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Italy’s Newcleo Shift Gears to Focus on the U.S.Market
It took just nanoseconds for Italian SMR developer NewCleo to read the U.K. tea leaves as the government in London announced it selected Rolls-Royce to build three of its 480 MW SMRs at Wylfa.
Newcleo said in a press statement is has now made a strategic shift with new plans to build 20 SMRs in the UK – a project valued at around $20 billion – in favor of pursuing opportunities in the US. The start-up also recently shifted its headquarters from Britain to France.
At the World Nuclear Exhibition in Paris, Newcleo CEO Stefano Buono told the Reuters wire service: “There are a lot of tools that are encouraging investment into the US now.”
A company spokesperson later told Reuters several steps remain before an investment commitment is made. In addition to reactor deployment, NewCleo is positioned as an investor in a joint venture with Oklo to build a $1.68 billion nuclear fuel production plant in Tennessee.
Other European Nuclear Reactor Developers Eye U.S. Nuclear Markets
Newcleo isn’t the only European nuclear energy firm taking aim at the U.S. market. Thorizon, a Franco-Dutch SMR manufacturer, is among other companies that are considering setting up operations in the US due to quicker pathways to market. While the firm has continued to pursue markets in European Union countries, it has not, so far, made any public announcements about prospects in the U.S.
Thorizon’s primary market is currently in Europe, but its focus on using nuclear waste and the development of a unique, cartridge-based molten salt reactor positions it for the future U.S. market, particularly the demand from large-scale industrial users and data centers.
A potential U.S. market strategy for Thorizon could involve:
Forming a strategic joint venture with a U.S. utility or industrial end-user.
Establishing a U.S. presence to begin pre-licensing engagement with the NRC.
Highlighting the circular fuel cycle advantage to U.S. policymakers and the public.
As of March 2025, the firm has raised $43 million in Series A funding. In August 2025 the European Union awarded the firm an additional €10 million ($11.6 million) from the Just Transition Fund (JTF).
The firm is developing a molten salt SMR. The Thorizon One will provide 250MW of industrial heat. It can also be transformed into 100MW electricity, enough to power 250.000 households. It has forged partnerships with Orano for fuel development, Tractebel for engineering, and VDL Groep for prototyping, while collaborating with EPZ for early operator input, and with EDF on R&D.
The firm faces stiff competition in the US from at least a dozen other developers of micro reactors. Additionally, any serious effort to enter the US market would require preparing a regulatory engagement plan with the Nuclear Regulatory Commission. Any other micro or small modular reactors developer from Europe seeking to enter the US markert would face similar challenges.
Enrichment Firms Expand US Capacity
Reuters reports that French company Orano and multinational Urenco are reportedly planning to set up new enrichment facilities in the US to cater to rising industry demand.
Orano is planning its first overseas enrichment plant near Oak Ridge, TN, for an expected $5 billion investment. Most of the planneed site is undeveloped. (Image right courtesty of Orano)
Depending on federal funding and customers’ support, the facility will produce LEU/LEU+ to fuel existing commercial nuclear energy reactors and, potentially, HALEU to help develop and power advanced reactors.
Orano aims to have its facility operational by 2031 and predicts that the US may soon become its largest market, overtaking its production of nuclear fuel in France.
Urenco currently operates a site in Eunice, NM, with capacity expansions under way. In October Urenco received approval from the Nuclear Regulatory Commission (NRC) to enrich uranium up to up to 10% U235.
Urenco CEO Boris Schucht said: “A lot of customers, especially US customers, are once again supporting us with very long-term contracts for our own capacity program.”
The company’s plant in New Mexico is making about 4.3 million tons of uranium a year, with 700,000 tons of capacity being added incrementally to 2027. The company can add up to 2 million tons in additional capacity if needed, said Schucht.
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Oklo Gets DOE Approval of Fuel Fabrication Safety Milestone
Oklo Announces U.S. Department of Energy Approval for Nuclear Safety Design Agreement of Aurora Fuel Fabrication Facility
Oklo Inc. (NYSE: OKLO) announced that the U.S. Department of Energy (DOE) Idaho Operations Office has approved the Nuclear Safety Design Agreement (NSDA) for the Aurora Fuel Fabrication Facility (A3F) at Idaho National Laboratory (INL), selected to participate in the DOE’s Advanced Nuclear Fuel Line Pilot Project. The NSDA, the first under the DOE’s Fuel Line Pilot Project, was approved in just under two weeks.
Located at INL’s Materials Fuel Complex, the A3F, on the Arco desert about 25 miles west of Idaho Falls, ID, will fabricate fuel for Oklo’s first commercial-scale powerhouse, the Aurora-INL. Together, these facilities couple fuel production to power delivery for commercial deployment of advanced nuclear energy. Oklo plans to have the Aurora Powerhouse in operation by 2027.
Oklo and Battelle Energy Alliance (BEA), the Department of Energy’s management and operations contractor for INL, entered into a cooperative research and development agreement (CRADA) in 2023 for Oklo to use a supply of DOE high- assay low-enriched uranium (HALEU) for fuel fabrication. This HALEU fuel feedstock is uranium metal recovered from Experimental Breeder Reactor-II (EBR-II) in the Fuel Conditioning Facility under a DOE-funded program.
Oklo was granted access to fuel material through a competitive DOE process launched in 2019. In 2019, the company received both a site-use permit at INL and access to fuel recovered from thec Experimental Breeder Reactor-II (EBR-II).
Recovered metallic fuel alloy, made by recycled metal fuel, is prepared to fabricate into assemblies.
(Image: Idaho National Laboratory)
The DOE review of the safety basis for nuclear facilities determines whether the safety basis has been developed in a manner that provides reasonable assurance of adequate protection of workers, the public, and the environment from adverse consequences, taking into account the work to be performed and the associated hazards.
“This approval marks clear progress toward demonstrating how we can repurpose used nuclear fuel to power the next generation of clean energy reactors,” said Jacob DeWitte, co-founder and CEO of Oklo Inc.
“Advanced fuel fabrication and recycling technologies represent a significant unlock for our business, addressing fuel-supply challenges while transforming fuel economics and creating new revenue opportunities.”
“Approval of the NSDA for Oklo’s Aurora Fuel Fabrication Facility is an important step forward,” said Robert Boston, Manager of the DOE Idaho Operations Office. “We’re excited for companies selected for the Fuel Line Pilot Program to demonstrate how the United States can safely and efficiently scale the next generation of nuclear fuel manufacturing.”
Oklo Expands Collaboration with Idaho National Laboratory
on Advanced Fuels and Materials
Oklo Inc. (NYSE: OKLO) announced it had signed a memorandum of understanding (MOU) with Battelle Energy Alliance (BEA), the management and operating contractor for Idaho National Laboratory (INL), to expand collaboration on scientific and technological research and development in areas such as advanced fuel and materials work that are mutually beneficial and support Oklo’s commercial deployment.
The collaboration plans to use Oklo’s first commercial power plant, Aurora-INL. While the Aurora powerhouse is designed for power production, it is also capable of generating fast neutrons and thereby generating valuable data through in-reactor irradiation experiments that can then be analyzed at INL’s Materials and Fuels Complex (MFC).
This capability enables fast reactor irradiation testing in the US that hasn’t existed in decades. The data collected will support future fuel manufacturing improvements, cost reductions, and Oklo’s recycling efforts. By generating new fast reactor data under commercial operating conditions, Oklo aims to accelerate how it refines and qualifies its fuel and materials by leveraging its vertically integrated approach of product deployment.
Under the MOU, Oklo and INL will collaborate on irradiation of advanced nuclear fuels and materials during Aurora-INL’s operating life which could be examined at INL to better understand how fuel and materials perform in a fast- spectrum reactor environment. The resulting data would help advance U.S. fast reactor capabilities and nuclear fuel manufacturing.
The collaboration was prompted by ongoing work supported by the U.S. Department of Energy’s (DOE’s) Advanced Fuels Campaign (AFC) as well as a recent project supported under the DOE’s Gateway for Accelerated Innovation in Nuclear (GAIN) which helped Oklo and INL test design and logistical strategies that can be incorporated into Oklo’s Aurora Powerhouse for irradiation and subsequent analysis.
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NIA Updates Reports on Who’s Who in Advanced Reactors and How They Work
The Nuclear Innovation Alliance (NIA) has released updates to the Advanced Nuclear Reactor Technology: A Company Compendium and Advanced Nuclear Reactor Technology: A Primer.
These updated documents provide information and insights into advanced nuclear technology innovation and commercialization. They serve as resources for investors, reporters, policymakers, regulators and others who want to learn more about advanced nuclear technologies and the key players building this industry.
As the United States continues to pursue clean, firm technologies, these reports serve as helpful guides to understanding the basics of advanced nuclear energy technology and the companies involved in the design, licensing, construction, and operation of advanced nuclear reactors.
“So much is happening in the rapidly evolving advanced nuclear energy arena. We updated our Company Compendium and Primer again to provide investors, media, congressional and administration staff, and others the key information they need,” explained NIA President and CEO, Judi Greenwald.
“The Company Compendium provides an introduction to the advanced reactor business ecosystem for potential investors and other key stakeholders, while the Primer is intended as a “101” document that explains the characteristics of the most common advanced nuclear reactors, the leading designs, and the latest advanced reactor technology developments.”
“Given the ongoing evolution of both the business side and the technology side of the advanced nuclear energy community, both documents will continue to be updated every year to reflect changes in the marketplace and advances in commercialization .”
Download a copy of the updated Company Compendium here: Advanced Nuclear Reactor Technology: A Company Compendium | NIA
Download a copy of the updated Primer here: Advanced Nuclear Reactor Technology: A Primer | NIA
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LucidCatalyst Study Shows Significant Potential market for SMRs
LucidCatalyst presents a new study, “A new nuclear world: how small modular reactors can power industry.” The study has been published by Urenco, who commissioned LucidCatalyst to produce it to further industry understanding of this evolving market.
The report is supported by World Nuclear Association. It analyzes the energy demands of 11 industries representing 80% of industrial energy use, going beyond data centers to examine where SMRs can make a tangible impact on industrial energy delivery, and quantifies how changes in delivery models and market drivers can expand SMR market access. (Full text of report: PDF file)
The study sets out how the full potential of the SMR market in the industrial energy space can be unlocked, representing a $0.5–1.5 trillion investment opportunity, as energy-intensive sectors face mounting pressure to secure reliable, cost-competitive energy whilst meeting decarbonization commitments.
The key findings of the study include that:
SMRs could reach 700GW of capacity by 2050 (under the Transformation Scenario involving factory style mass manufacturing approaches to constructing SMRs). This sizable opportunity, representing nearly double the current global nuclear capacity, and would expand nuclear capacity beyond the projected goal to triple conventional deployment.
Simultaneous improvements across six areas of delivery would enable this outcome: a ‘product-based’ approach to manufacturing and licensing, freeing up sites for SMRs; stronger policy and financing support, and a more mature reactor developer environment.
The top five industries representing more than 75% of the 700GW opportunity are: synthetic fuels for aviation and maritime, coal repowering, data centers, and chemicals.
Other sectors such as food and beverage (43 GW), iron and steel (33 GW) and district energy (33 GW) also represent sizable opportunities, with district energy demand being more prevalent in Europe. Upstream oil and gas is a more prevalent opportunity in North America.
With improvements to current construction methods alone, 120GW of capacity could still be achieved by 2050 (under the Programmatic scenario, involving enhanced Government support and improved project management).
The study warns that stronger policy and financing support is needed to achieve economic viability.
“Policymakers can identify national SMR market opportunities, signal strategic priorities, and design targeted policies to address critical development bottlenecks,” the study says.
Figure 4 – In the 40 GW pipeline identified in this study, not all projects have the same level of confidence. Around 50% of this pipeline (20 GW) corresponds to projects that are actively progressing and show strong development signals (Figure 4).
These trends are consistent with the International Energy Agency’s (IEA) “Stated Policies Scenario (STEPS)” projections, 1/ which suggest around 19 GW of SMRs in advanced economies by 2050. These results are encouraging and confirm that the SMR potential to meet industrial energy needs is both substantiated and actively developing. (Image: Lucid Catalyst)
Footnote - 1/: IAEA – The Path to a New Era for Nuclear Energy
High-profile US projects include TerraPower’s construction of a Natrium SMR at a former coal site in Kemmerrer, WY, and plans to deploy four X-Energy 80 MW HTGRs SMRs to provide power for chemical giant Dow’s Seadrift plant in Texas. Amazon has unveiled plans for an SMR facility in the state of Washington, partly to power its data centers. It plans to finance the first four of 12 X-Energy SMRs at the site.
Notably, around 80% of SMR projects are being driven by non-traditional customers, primarily large industrial energy users, indicating a significant shift in the nuclear energy customer base from large publicly traded electric generation utilities.
Responses to the Study
Boris Schucht, Chief Executive of Urenco Group, said: “Decarbonizing industry presents a tremendous challenge that we must all embrace if we are to achieve net zero by 2050 or sooner.”
“We believe the new-nuclear SMR market holds one of the solutions to this problem: flexible, adaptable technologies that can produce clean energy consistently and affordably.”
“This study acknowledges that with a strong focus on enabling delivery, SMRs can be maximized to their fullest and most competitive potential, significantly enhancing the ability of the nuclear industry to make an important contribution to energy security and net zero goals.”
Kirsty Gogan, Managing Partner of Lucid Catalyst, said:
“We’re witnessing a transformation in how nuclear energy services can be delivered to industrial customers. The innovations in manufacturing, licensing, and siting that this study identifies as being critical for enabling scale are already emerging in the market. With the right policy support and industry coordination across six critical areas, small modular reactors can provide a net-zero solution for energy-intensive industries requiring highly reliable, competitive, and scalable, emissions-free heat and power.”
King Lee, Head of Policy & Industry Engagement at World Nuclear Association, said:
“This study highlights the scale of opportunity for nuclear energy to support decarbonization of a wide range of industrial sectors. To realise the full potential of nuclear energy would require new regulatory frameworks and production and deployment models to unlock the economy and scale of implementation far beyond current projections.”
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Affordable Financing For Nuclear Projects is the Missing Link for Success
(NucNet) Stronger international collaboration is needed in a bid to overcome financing and regulatory barriers facing nuclear energy projects in emerging economies, an event organized by the Paris-based OECD Nuclear Energy Agency (NEA) to coincide with the Cop30 climate conference in Brazil.
Speaking at a webinar, ‘Unlocking Climate Finance for Nuclear Energy in Emerging Economies’, senior executives from Africa, Asia and global institutions said access to affordable financing is “the missing link” for nuclear projects.
They said the future of nuclear power depends on collective learning, public trust, and equitable access to climate finance.
NEA director-general William Magwood warned that “financing new nuclear facilities remains one of the toughest challenges” for many developing nations, and that multilateral cooperation – including with the World Bank Group – will be essential to bridge both the financial and technical gaps.
“If we are serious about decarbonization, we must be equally serious about giving every country the tools and financial mechanisms to build reliable, clean nuclear energy.”
Nuclear ‘Vital’ To Kenya’s Long-Term Goals
Justus Wabuyabo, chief executive officer of Kenya’s Nuclear Power & Energy Agency (NuPEA) told the webinar that Kenya views nuclear energy as vital to its long-term economic and environmental goals.
He said Kenya completed phase one of its nuclear power program in 2023, focusing on stakeholder engagement and policy readiness, and is now preparing for phase two, due to be completed by 2027. The country plans to begin construction of its first nuclear power plant by 2034.
“The Kenyan government recognizes that nuclear energy will play a crucial role in powering industrialization and creating jobs,” Wabuyabo said.
“It’s not just about energy; it’s about aligning with our climate strategy and supporting national development.”
However, Wabuyabo acknowledged the public has lingering doubts about nuclear technology.
“We must continue building trust,” he said, noting that partnerships with organizations such as the NEA could help Kenya develop robust safety frameworks and transparent communications with communities.
Loyiso Tyabashe, group chief executive of the South African Nuclear Energy Corporation (NECSA), said South Africa is extending the life of its existing nuclear reactors by up to two decades while also exploring new build options.
Tyabashe said financial planning must precede vendor negotiations, cautioning against premature commitments before securing sustainable capital.
“Quality is linked to the cost of capital,” he said. “Before we even think about technology vendors, we must address financing models. That’s where institutions like the World Bank can be real trend-setters.”
He said Necsa, a public body that carries out nuclear research and development, supports broader African collaboration on nuclear technology, research and skills development and said shared learning can help reduce project costs and ensure regulatory alignment across borders.
Giovanni Carlo Bacardo, undersecretary at the Department of Energy of the Philippines, said his country’s progress depends on access to climate finance and the inclusion of nuclear energy in green taxonomies – the classifications used by investors and international institutions to define sustainable projects.
“For countries like the Philippines, the recognition of nuclear energy as green energy is key to unlocking financing,” Bacardo said. “We are committed to safety and sustainability, but access to affordable capital remains the missing link.”
World Bank ‘Can Be A Trend-Setter’
Lauren Claire Culver, senior energy specialist at the World Bank, which recently signed an agreement with the International Atomic Energy Agency to cooperate on the development and financing of nuclear power for developing countries, acknowledged that while the organization recognizes nuclear power’s potential role in the global clean energy transition, it still faces an internal knowledge and experience gap.
“We understand the importance of nuclear in addressing climate change,” Culver said, “but the World Bank has limited practical experience in the sector”.
Culver proposed the creation of an advisory board to strengthen dialogue between the World Bank, nuclear regulators and national agencies in emerging economies. She also suggested introducing grant-based resources to help developing countries borrow for technical assistance, capacity building, and regulatory compliance.
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