Great British Energy – Nuclear (GBE-N) has formally signed a contract with Rolls-Royce SMR to begin technology design activities for what is intended to become the UK’s first small modular reactor project.
The agreement marks the next concrete steps for a programme that has been gathering pace since Rolls-Royce SMR was selected as the Government’s preferred technology partner in June 2025. Following that decision, Rolls-Royce SMR announced late last year that its first modular reactor would be built at Wylfa in Wales.
While there’s now a contract signed between GBE-N and Rolls-Royce SMR, don’t expect spades to be hitting the grounds just yet. The contract just moves the project beyond selection and into the more detailed phase of design, planning and regulatory work that will be needed before ministers can take a final investment decision.
That’s why the project also isn’t unlocking the full £2.6 billion that was pledged to support the contract and wider programme delivery at this stage. That money was allocated as part of the 2025 Spending Review and will likely be released in the future, but until then, the National Wealth Fund is chipping in £599 million to support Rolls-Royce SMR in the development of the technology.
That funding is expected to support around 1,000 new jobs at Rolls-Royce SMR, which will need to build up its capabilities if it’s going to eventually deliver the project. That’s only the start, however, with the Government envisioning the project eventually supporting 3,000 jobs at peak construction and thousands more across the UK supply chain.
What comes next?
According to GBE-N, the contract requires Rolls-Royce SMR to work against key milestones as it starts site-specific design, engages with regulators, and progresses planning processes.
Simon Bowen, Chair of Great British Energy – Nuclear, commented, “This is an immense moment for the UK nuclear programme, our organisation, and the industry as a whole.
“Today represents a true recognition of the efforts made across GBE-N, Rolls-Royce SMR and Government to get to this point, and I’m hugely proud of the team for reaching this critical milestone.”
Ed Miliband, the UK’s Energy Secretary, added, “At a time of global instability, this is a major milestone for Britain’s energy security.
“We are backing a British company to deliver our first small modular reactors – creating a generation of good jobs, driving growth and providing clean, homegrown power for decades to come.
“Our clean energy mission is the only route to getting off the rollercoaster of fossil fuels and take back control of our energy independence.”
The contract is also significant for Rolls-Royce SMR itself. Winning the UK programme has long been seen as central to proving that its model can move from concept and regulatory progress into real deployment.
Chris Cholerton, Chief Executive of Rolls-Royce SMR, concluded, “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.
“We are transforming the way nuclear projects are delivered, to give greater cost and schedule certainty with a standardised, factory-built approach. This project is important to the UK’s energy security and will power up our business and the UK supply chain, and we are excited by the opportunity and are focused on successful delivery.”
