Government to unlock advanced nuclear to grow economy

Britain could see some of the world’s first advanced nuclear power stations powering factories and AI data centres, as part of the government’s “golden age” of nuclear to support jobs, drive growth and protect billpayers with homegrown clean energy. 

The government is today (Wednesday 4 February) publishing a first-of-its-kind framework which aims to stimulate private investment in innovative nuclear technologies across the country, providing a clear route to market and support for credible projects to get them off the ground. 

Britain is one of the first to champion the development of cutting-edge nuclear projects driven by the private sector, recently announcing major commercial deals between UK and US companies. This includes plans for X-Energy and Centrica to build 12 advanced modular reactors in Hartlepool, supporting 2,500 jobs, as well as plans for Holtec, EDF, and Tritax to build small modular reactors at the former coal-fired power station Cottam in Nottinghamshire, providing clean, secure power to data centres on the site. Meanwhile TerraPower is working with engineering firm KBR to explore the potential deployment of its Natrium advanced reactor technology in the UK and beyond. 

To speed up deployment of advanced nuclear and attract private investment, government is launching a “pipeline” of credible projects that meet essential readiness criteria. A “concierge-style” service will help developers understand requirements around UK planning, regulation and fuel, as well as enabling them to crowd-in private investment. 

Advanced nuclear technologies – including advanced, small, and micro modular reactors – are manufactured in factories meaning they could be built quicker and at a lower cost, with skilled jobs located across multiple regions. They can provide clean energy to the grid or directly to private industrial consumers to meet growing clean energy demand and help decarbonise industry. 

It follows the biggest government investment in nuclear power for a generation, greenlighting Sizewell C in Suffolk and selecting Wylfa in North Wales to host the country’s first small modular reactors.

Minister for Nuclear Patrick Vallance said:

Advanced nuclear technology could revolutionise how we power industry and propel the AI data centre boom – delivering more clean energy and jobs.

We are seizing the opportunity to become a frontrunner in this space as part of our golden age of nuclear, creating the conditions for the industry to flourish.

Lord Livermore, Financial Secretary to the Treasury, said:

This government is delivering the largest investment in nuclear power in a generation to create new jobs and to drive economic growth right across the UK.  

The plans we have published today will provide investors with the long-term confidence they need to back advanced nuclear technologies here in Britain.

Developers can use the Advanced Nuclear Framework to submit proposals to join the pipeline from March this year, which will then be assessed by experts in government and Great British Energy-Nuclear according to key criteria such as technology status, developer capability, and financing plans.  

Successful applicants would receive in principle government endorsement. While they would be expected to be privately financed, it would also open up discussions on what support from the government might be needed to help get projects off the ground, while providing value to the taxpayer and billpayer, including:

• revenue support once projects are operational
• risk protections for extremely rare events to develop projects with little risk for the taxpayer

Additionally, projects can approach the National Wealth Fund, who can act as a catalytic investor for projects that meet their investment criteria, and help derisk further private investment.  

Advanced nuclear reactors use novel fuels and coolants so operate at higher temperatures, which can provide excess heat for industrial processes in factories or data centres. Developers are aiming for their first AMRs to be operational in the UK by the mid-2030s.  

The Nuclear Decommissioning Authority is releasing surplus land for clean energy projects including at Chapelcross in Scotland, Pioneer Park in Cumbria, and Trawsfynydd in Wales. 

The government is also publishing a Statement on Civil Nuclear Fuel Use which sets out the requirements for uranium-based fuels used in civil nuclear reactors, providing clarity for the sector. It ensures alignment with national objectives for energy security, environmental protection, and long-term spent fuel and waste management.

Neil Cooper, Chief Financial Officer at Great British Energy-Nuclear said: 

Today’s announcement is hugely positive for the nuclear industry in the UK and signals the start of a disciplined and transparent partnership between government and the private sector, built on evidence, not optimism. GBE‑N is ready to play its full part with objectivity and consistency, at pace.

Oliver Holbourn, CEO at the National Wealth Fund, said:  

Nuclear energy has a vital role in the UK’s transition to reliable, clean and secure energy. We want to support viable projects to accelerate progress, creating jobs, crowding in private capital and boosting regional economic growth, in the process. 

Jane Bowie, SMR Development Director at EDF, said: 

In the week we recognise the 50th anniversary of when the UK’s first two AGR power stations started operations, EDF welcomes the government’s advanced nuclear framework which will help develop a new generation of nuclear power projects. 

EDF is working with US company Holtec on an exciting opportunity to develop their small modular reactor technology at the Cottam site in Nottinghamshire. We also welcome the interest of X Energy and Centrica in developing our Hartlepool site for Advanced Modular Reactors. 

Government recognition and support for projects like these – alongside the UK-US nuclear partnership and reforms proposed in the recent Fingleton review on nuclear regulation – will help attract finance and increase the prospects of these projects moving forward.

Sue Ferns, Senior Deputy General Secretary at Prospect, said: 

New nuclear has a vital role to play in our future energy mix, providing secure clean energy that can meet domestic and industrial energy needs, while also supporting thousands of good quality jobs.   

Next generation nuclear technology, like small and advanced modular reactors, provide an exciting opportunity to capitalise on the UK’s nuclear heritage and lead the way in pioneering new approaches, so it is welcome that government is acting to accelerate development with this Framework. 

Prospect will work with government and industry to ensure that the sector continues to create good, unionised jobs, and to develop the skilled workforce needed to power an expanded nuclear sector. 

Chris O’Shea, Chief Executive at Centrica Group, said:  

Today’s framework could help turn intent into investment and plans into power, so Britain can build advanced nuclear faster, power the AI revolution with clean, homegrown energy, and create skilled jobs across the country.  

Centrica is backing nuclear for the long term – from our 20% stake in the UK’s existing fleet to our support for Sizewell C, where the recent capital raise brought in major global investors – clear evidence that well designed nuclear projects attract serious international backing.  

Now, with X energy, we’re ready to deliver in Hartlepool – a project that will deploy multiple reactors that could support around 2,500 jobs and anchor new skills in the North East – turning momentum into projects on the ground, while working closely with government to finalise the details needed to move at pace. 

Alistair Black, Vice President and UK Market Lead for X-energy said:  

This framework is a crucial step forward. It recognises the need to go further and faster with new nuclear to meet the country’s energy and economic growth aspirations. 

X-energy is deploying cutting edge advanced modular reactors in the US and we’ve been developing UK plans for several years, now in partnership with Centrica.  Visible government support for early projects here will unlock the private investment we know is waiting to support a UK fleet. We look forward to discussing the details. 

Rick Springman, Holtec’s President for Global Clean Energy Opportunities, said: 

The UK Government’s Advanced Nuclear Framework is a welcome step toward turning advanced nuclear ambition into delivery, particularly in support of energy security and economic growth.  

Through this framework, Holtec will progress plans with EDF UK to deploy its SMR-300 at the Cottam site, delivering clean, reliable power. This project will directly benefit from Holtec’s SMR-300 deployment at Palisades in Michigan—the first of its kind in the United States. As a second-of-a-kind project, Cottam will leverage lessons learned to reduce risk, accelerate delivery, and support high-quality jobs in the UK.

Tom Greatrex, Chief Executive of the Nuclear Industry Association, said:  

This framework provides welcome clarity and momentum for advanced nuclear projects in the UK. A clear process by which projects can get an in-principle government endorsement is vital to unlocking private investment and giving developers the confidence to move from ambition to delivery. That will be essential to powering an industrial revival in Britain, creating good, skilled jobs and delivering clean, reliable power for industry and the wider economy.

Borus Schucht, CEO of Urenco, said:  

Urenco welcomes the government’s advanced nuclear framework and corresponding Statement on Civil Nuclear Fuel Use which demonstrate the UK’s clear commitment to new nuclear and strengthening the nuclear fuel cycle.  

As the demand for clean energy intensifies, the need for innovative nuclear solutions has never been more critical. Smaller, advanced reactors have the potential to be pivotal in decarbonising our economy. To reap these benefits, financing will be key, and we therefore applaud the government’s efforts to help stimulate private investment. Furthermore, the Statement on Civil Nuclear Fuel Use provides long-term clarity for Urenco’s existing nuclear fuel capabilities that underpin today’s reactor fleet as well as advanced nuclear fuels for next generation technologies. 

The government’s publications show the UK’s strategic leadership and provide confidence for the industry to continue to invest and innovate, helping to maintain the UK’s position as a leader in safe, reliable nuclear fuel production.

Loren Jones, Senior Vice President, Energy & Environment – International at Amentum said:  

Advanced nuclear technologies will be a strategic economic advantage for nations that embrace them now. As part of the new golden age of nuclear we welcome the government’s framework and the opportunities for closer UK/US collaboration to accelerate the development of advanced nuclear energy.