We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Rolls-Royce to unveil funding for smaller nuclear reactor - report

Mon 08 November 2021 10:29 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Rolls-Royce and a consortium of investors are close to announcing funding for a small-scale nuclear reactor, it was reported on Monday.

According to the BBC, the engineering firm is set to confirm that the as-yet unidentified consortium will back plans for the project as early as Tuesday.

Should it go ahead, the deal is expected to be backed by government, which has previously said it would provide £210m in funding if that could be matched by private capital.

Rolls-Royce, which on Monday completed the sale of its civil nuclear instrumentation and control business, has yet to comment on the report. The sale did not include either Rolls-Royce UK civil nuclear business or its small modular reactor (SMR) activities.

SMRs, which are capable of generating around 500 megawatts of power, are not substitutes for full-scale nuclear plants, which produce around 3 gigawatts of power.

They are, however, considerably cheaper, with SMRs costing around £2bn in contrast to the £20bn it will cost to build the full-scale plant Hinkley Point in Somerset. The expected expansion of Sizewell in Suffolk is also expected to cost around £20bn. Their size allows SMRs to be built in a controlled factory setting and installed in parts, thereby reducing both risk and costs, the BBC said.

As at 1015 GMT, shares in the blue chip were largely flat at 142.3p.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More company news from ShareCast