The UK energy landscape is set for a significant shift with the announcement of a £35 billion investment in 14 small modular nuclear reactors (SMRs) by Polish billionaire Michał Sołowow's consortium, SGE SMR. This massive private funding will generate enough electricity to power approximately 8 million homes for over six decades, effectively doubling current UK energy capacity and positioning the country as a major player in the burgeoning nuclear sector.
Sołowow's nuclear development company, SGE, is partnering with industrial heavyweights GE Vernova and Hitachi to invest between £2.2 billion and £2.5 billion in each 300-megawatt boiling water reactor (BWR). The consortium has identified three potential sites for the reactors, with Oldbury in South Gloucestershire being a likely location. To secure its investment, SGE SMR will need to negotiate a government support contract, which would guarantee a 'competitive' electricity price once generation begins in 2034.
The UK government's advanced nuclear framework has provided the necessary infrastructure for this project, with Sołowow citing the nation's experienced nuclear workforce and clear path to market as key factors driving confidence. The consortium plans to rely heavily on the UK supply chain, which will not only create jobs but also provide a 'distinct competitive advantage' for the domestic economy.
The SGE SMR project enters a competitive landscape, where it will vie with Rolls-Royce's government-backed SMR initiative, which aims to begin power generation by 2032. Sołowow has expressed aspirations for a partnership with Google Cloud to invest up to £4.5 billion in data centres that would utilise the nuclear output, although this proposal remains distinct from the current SMR application.
SGE SMR is pursuing a contracts for difference (CfD) scheme, mirroring the model used for Hinkley Point C. This mechanism guarantees a fixed electricity price from energy bills once operational, providing revenue certainty without exposing billpayers to construction risks associated with alternative funding models, such as that proposed for Sizewell C.
Tom Greatrex, chief executive of the Nuclear Industry Association, welcomed SGE's plans, stating they demonstrate how the government's nuclear framework has 'revived and spurred interest' in the sector. This significant investment is expected to have a profound impact on UK energy security, economic growth, and job creation.
As the project progresses, it will be closely watched for its potential to drive innovation and stimulate competition in the energy market. With over £35 billion committed to this ambitious venture, SGE SMR is poised to cement the UK's position as a leader in nuclear technology and sustainable energy solutions.