Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)
Summary
Contracts have been signed to allow construction works to start on the U.K.’s first small modular reactor (SMR) plant in Wylfa, Wales.
Energy Independence
The U.K. government has signed a contract with Rolls‑Royce SMR to begin design activities to build the country’s first power plant based on small modular reactor (SMR) technology.
The contract was signed with the state’s Great British Energy – Nuclear body, and allows preparatory work to begin at Wylfa, which has a long nuclear power history dating back to the 1960s. An older nuclear plant there was shut down in 2015, and plans for a large-scale replacement fell through in 2021. The site will initially host three SMRs but could potentially host up to eight. In addition, Rolls Royce SMR has secured up to £599 million (US$813 million) in financial support from the National Wealth Fund to support the development of its SMR technology. Rolls Royce SMR won the government’s competition tender for the project last summer, beating rival offerings from Holtec International, GE-Hitachi Nuclear Energy International and Westinghouse Electric Company. For additional information, see June 24, 2025, article – U.K. Picks Rolls-Royce for First Mini-Nuclear Plants. According to Industrial Info Resources data there are five planned SMR projects in the U.K., including Wylfa, worth US$35 billion in investment. Full project details are available to Industrial Info Resources subscribers here.
The government stated that the current conflict in the Middle East is “yet another reminder that the only route to energy security and sovereignty for the U.K. is to end dependence on fossil fuel markets, and accelerate the transition to clean, homegrown power.” Energy Secretary Ed Miliband said: “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 roller coaster of fossil fuels and taking back control of our energy independence.”
Fast-Growing European SMR Market
While the U.K. is hoping to be first to deploy SMRs on a commercial scale, there is growing activity in the European market. In February, Romania became the first and only European country to take a positive final investment decision to proceed with the country’s first SMR project in Doicești with NuScale. For additional information, see February 24, 2026, article – Final Investment Decision For Romania’s First SMR. According to Industrial Info Resources data, less than a year ago, there were 29 SMR projects valued at around US$61 billion in potential investment but that figure now stands at 44 projects worth US$135 billion. Subscribers to Industrial Info Resources’ Global Market Intelligence (GMI) Power Project Database can click here for the reports.
Chris Cholerton, chief executive of Rolls-Royce SMR, added: “This contract unlocks the delivery of our first three units and brings certainty to the U.K. 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.”
The Wylfa Project
Rolls Royce aims to construct a plant using three of its small pressurized water reactors (PWR), each capable of generating up to 470 megawatts (MW) of electricity. Combined they will be able to supply around 1.4 gigawatts (GW) of power, enough for 3 million homes for 60 years. Each SMR measures around 16 meters by 4 meters – significantly smaller than traditional nuclear reactors – and most of the plant’s modules can be constructed and tested offsite before being delivered by trucks for final installation. This reduces the costs, risk and construction times greatly, according to Rolls Royce SMR. The plant, which is still subject to a final investment decision, aims to be operational in the mid-2030s.
Deal Welcomed
Welcoming the agreement, Tom Greatrex, chief executive of the Nuclear Industry Association, said: “This is a historic step for clean power, industrial growth and skilled jobs in Wales. It marks the beginning of a significant and exciting new phase for the project and the people of Ynys Môn. It allows work to begin on a project that will create thousands of jobs and attract significant investment locally and across Britain, while helping to secure the UK’s long-term supply of reliable, low-carbon power.
Key Takeaways
- The U.K. government signs a contract with Rolls Royce SMR for its first small modular reactor (SMR) plant.
- The three-unit plant in Wales will use small pressurized water reactors (PWR) with a combined capacity of roughly 1.4 gigawatts (GW), enough for 3 million homes for 60 years.
- According to Industrial Info Resources data, there are 44 European SMR projects worth US$135 billion.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR’s Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).
