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(Sharecast News) - Rolls-Royce has signed a contract with the UK government and secured nearly 600m of state funding to help develop small modular reactors, it was announced on Monday.
The government is looking to adopt the prefabricated nuclear reactors as part of its wider push towards clean energy.
The blue chip was selected as the preferred technology partner in July, and on Monday state-owned Great British Energy - Nuclear (GBE-N) confirmed it had now signed a contract with the engineer, which will formally commence design activities.
The SMR project is expected to support around 3,000 jobs at peak construction and thousands more in the supply chain.
In addition, Rolls-Royce has also secured up to 599m from the National Wealth Fund to further support the development of SMRs.
Chris Cholerton, chief executive of Rolls-Royce, said: "This contract unlocks the delivery of our first three units and brings certainty to the UK SMR programme. With plans for up to six further units in Czechia, this announcement makes Rolls-Royce SMR the only company with multiple commitments in Europe."
GBE chair Simon Bowen called it an "immense moment" for the UK nuclear programme.
National Wealth Fund chief executive Oliver Holbourn added: "The deployment of Rolls-Royce SMR technology here in the UK will create thousands of jobs and pave the way for an affordable, cleaner and more secure energy system."
SMRs have around a third of the generating capacity of traditional nuclear power reactors. However, because they are smaller and prefabricated, construction times are faster and they can be sited on locations not suitable for larger plants. The three Rolls-Royce SMRs will be sited on Wylfa on the coast of Ynys Mon, also known as Anglesey, in North Wales.
Set up last year, GBE is a publicly-owned investment fund focused on green energy, while the National Wealth Fund was created in 2024 when the UK Infrastructure Bank was rebranded. With 28.7bn of core capitalisation, it is wholly-owned by HM Treasury although operates independently of government.
As at 1100 BST, shares in Rolls-Royce were down 2% at 1,243.4p.