The recent announcement by Great British Nuclear (GBN) regarding the shortlisting of four companies in its Small Modular Reactor (SMR) competition signals a significant step forward for the UK’s nuclear energy ambitions. The selected firms—Rolls-Royce SMR, GE-Hitachi, Holtec Britain, and Westinghouse Electric—are now advancing in a process that could shape the future of the UK’s energy landscape and provide robust investment opportunities.
The UK government has committed to expanding nuclear power, aiming for it to provide up to a quarter of the country’s electricity by 2050. SMRs, known for their cost efficiency, flexibility, and shorter construction timelines, are central to this strategy. These smaller-scale reactors not only reduce the economic risks traditionally associated with large-scale nuclear projects but also offer opportunities for various industrial applications, from hydrogen production to district heating.
Rolls-Royce’s SMR, one of the frontrunners, has already made significant progress. Its design, based on a pressurised water reactor, is the only SMR in Europe currently undergoing regulatory approval. With its first unit expected to be operational by the early 2030s, Rolls-Royce’s strategic head start could offer substantial long-term returns for investors, especially as the UK government has indicated it will back the most viable SMR designs with significant funding. Rolls-Royce’s ambition to build up to 16 reactors demonstrates the scale of opportunity, particularly given the potential for future export.
GE-Hitachi’s BWRX-300 also presents an attractive investment opportunity due to its modular design and rapid construction time of 24-36 months. The technology’s versatility—being suitable for both electricity generation and industrial applications—positions it as a strong contender not just for UK deployment but also for export to global markets. The company has already seen success in Canada, where construction on its first SMR unit is set to begin in 2025. Investors may see this as a chance to tap into a growing international market, leveraging the expertise GE-Hitachi has built from its work abroad.
Westinghouse’s AP300, derived from its larger AP1000 design, similarly offers low-risk potential. Its use of established technology and familiarity with UK regulatory frameworks gives it a strong competitive edge. Like Rolls-Royce, Westinghouse is focusing on speeding up deployment, aiming to have its first reactor operational by the early 2030s.
Holtec’s SMR-160, while smaller in capacity, is notable for its flexible applications, such as process heat and hydrogen production, making it an appealing choice for regions with diverse energy needs. Holtec is actively pursuing manufacturing sites in the UK, further enhancing its value proposition for the domestic market.
As the competition enters its next phase, with contracts expected to be awarded by 2024 and final investment decisions targeted for 2029, these shortlisted companies represent key opportunities for growth and technological advancement. The UK’s ongoing push to secure energy independence and achieve its net-zero targets by 2050 ensures that nuclear energy will remain a critical part of the country’s energy mix, creating a fertile ground for long-term investment.
(Source: Nuclear Engineering International, Great British Nuclear, Nei Magazine)
