United Kingdom has formally entered the delivery phase of its first Small Modular Reactor (SMR) programme, after the signing of a landmark deal with Rolls-Royce SMR, which marks a significant step in the country’s clean energy and nuclear growth agenda.

The agreement initiates the critical technology design phase that will underpin UK’s first fleet of SMRs. These reactors are expected to play a central role in strengthening long-term energy security, supporting industrial decarbonisation, and stabilising electricity supply amid increasingly volatile global energy markets.

The contract follows the selection of Rolls-Royce SMR as the preferred technology partner in June 2025 and is backed by £2.6 billion in funding allocated through the 2025 Spending Review, providing the financial foundation for early-stage delivery and regulatory progression. Since that decision, teams from both Great British Energy – Nuclear (GBE-N) and Rolls-Royce SMR have been working intensively to finalise contractual terms and establish a structured roadmap for development.

Chris Cholerton, Chief Executive of Rolls-Royce SMR, explained that the contract unlocks the delivery of the first three units and brings certainty to the SMR programme.

“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.”
Chris Cholerton

With the agreement now in place, the programme moves beyond conceptual planning into a more advanced phase involving site-specific engineering, regulatory approvals, and planning processes. These steps are essential prerequisites for a future Final Investment Decision, which will ultimately determine the commencement of full-scale construction.

Technically, SMRs are designed as modular, factory-built nuclear systems that aim to reduce construction risk and shorten delivery timelines compared to conventional large-scale reactors. The planned deployment of three units is expected to generate at least 1.4GWe of electricity sufficient to power around three million homes for more than 60 years highlighting their role as a reliable long-term baseload solution within UK’s evolving energy mix.

The initiative is also closely linked to a broader wave of supply chain investment already underway. Great British Energy – Nuclear has reported awarding more than £350 million in contracts this year to UK-based firms involved in nuclear capability, advanced manufacturing, and reinforcing the programme’s wider economic impact.

Accoding to Chancellor of the Exchequer, Rachel Reeves, the government has the right economic plan, adding, “one where growth and clean energy go hand in hand and one that will benefit everyone across the country.”

“This investment, along with vital financing from the National Wealth Fund, will strengthen our energy security, create skilled jobs and help to build a new generation of homegrown nuclear technology that will power our economy for decades to come.”
Rachel Reeves

Energy Secretary, Ed Miliband also stated that, “at a time of global instability, this is a major milestone for Britain’s energy security.” He went on to say that the government is partnering with a British business to build UK’s first small modular reactors, which will create a generation of excellent employment, drive growth, and provide clean, indigenous power for decades.

SMR Agreement Boosts UK Nuclear Industry Confidence

UK’s small modular reactor (SMR) programme has gained renewed industrial momentum following the agreement between Great British Energy – Nuclear and Rolls-Royce SMR.

Simon Bowen, Chair of Great British Energy – Nuclear, described the development as a defining milestone, stating that, “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.”
Simon Bowen

Echoing this sentiment, Chief Executive Simon Roddy added that the agreement represents a “landmark moment for the nuclear industry.”

Furthermore, he indicated that, in collaboration with Rolls-Royce SMR, the initiative is expected to drive substantial long-term investment into UK’s industrial supply chain, while strengthening workforce skills, encouraging innovation, and expanding industrial capacity.

Meanwhile, National Wealth Fund CEO Oliver Holbourn framed the announcement as a significant step toward a more affordable and secure energy system, adding,“ this is exactly what the National Wealth Fund has been established to deliver, backing promising homegrown projects and technologies that will deliver transformational impacts.”