Rolls-Royce was given a major boost after it obtained the necessary funding to begin supplying parts of mini-nuclear reactors.
The Qatar Investment Authority, the country’s wealth fund, will pour £85m into the engine-maker’s nuclear offshoot, which now has total funding of £490m.
This means that it is able to start looking for factories where it can supply small modular reactor parts (SMRs).
Boost: The Qatar Investment Authority will pour £85m into Rolls-Royce’s nuclear offshoot, which now has total funding of £490m
This news is also a boost for the UK’s net zero targets, as reactors are capable of supplying huge amounts energy without releasing any carbon.
SMRs are small stations the size of two football pitches – around a tenth of the size of a normal nuclear plant – with the capacity to power one million homes.
Rolls-Royce’s government backed SMR project is expected to see the first reactors supplying homes within the next decade. Around 40,000 jobs will be created by nuclear power in the region by 2050.
Kwasi Kwarteng, Business Secretary of the UK, said that the UK’s investment in Kwasi Kwarteng was a “vote to confidence”. Kwasi Kwarteng praised the chance to increase business in Britain and stated that he hopes other countries will purchase British SMRs. Czech Republic has already expressed an interest.
Minister for Investment Lord Grimstone stated the funding is a continuation of work from the COP26 Climate Summit and will result in ‘thousands skilled jobs’.
The Qatari fund will take a 10 per cent stake in Rolls-Royce SMR, its offshoot nuclear reactor business. Its injection comes after Rolls, BNF Resources and Exelon Generation agreed to inject £195m over three years, unlocking £210m in government grants. Rolls owns 70% of the SMR company.
Kwarteng said: ‘This investment is a clear vote of confidence in the UK’s global leadership in nuclear innovation and follows the £210m of government investment in the development of Small Modular Reactors.
It is an important step towards our goal of deploying more clean, domestic energy.
Lord Grimstone stated: “By investing millions into green technology, we not only work hard to eliminate our contribution to global warming, but also secure thousands of skilled jobs.”