Rolls Royce signs £600m SMR pact with UK for Wylfa project

Rolls Royce has signed a much-anticipated deal with the UK government to build small modular reactor power stations in Anglesey, Wales.

It allows work to begin on the site of the former Wylfa nuclear power plant and is backed by a new investment of up to £599m from the UK’s National Wealth Fund.

Rolls-Royce chief executive Tufan Erginbilgic said the deal marked “a critical milestone for Rolls-Royce SMR, Rolls-Royce and the UK”, and added it would unlock “a golden age of new nuclear”.

The contract was signed between the nuclear division of Great British Energy – the publicly-owned company formed by government last year – and Manchester-based Rolls‑Royce SMR.

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It is the latest clean energy deal unveiled by Great British Energy: last week it announced a £40m investment in Sheffield-headquartered hydrogen electrolyser maker ITM Power.

Great British Energy-Nuclear chief executive Simon Roddy said the pact was “a landmark moment for the nuclear industry” which he added would bring “a significant long-term investment to the UK industrial supply chain”.

Three SMR units capable of delivering 1.4GWe will be located at Wylfa, a former nuclear power operated by Hitachi until 2015. Some 3,000 jobs are expected to be created for the construction phase and once live, the government expects the site to be operating for more than 60 years.

The UK chose Rolls-Royce as its preferred technology partner to transform the site in June 2025 and subsequently allocated £2.6 billion in the 2025 Spending Review.

Energy security

The deal comes as the war in the Middle East has driven talk of energy sovereignty to the top of government debates. And while many in Europe are advocating a Made-in-Europe policy towards energy technology, GB Energy is driving a Made-in-Britain agenda.

“At a time of global instability, this is a major milestone for Britain’s energy security,” said Energy Secretary Ed Miliband. “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.”

Chris Cholerton, chief executive of Rolls-Royce SMR, explained three SMR units would be developed at Wylfa and added that there were plans for a further six at a site in Czechia.

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“We are transforming the way nuclear projects are delivered,” he said, “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.”

Tom Greatrex, chief executive of the UK’s Nuclear Industry Association, said the Rolls Royce deal was “a historic step for clean power, industrial growth and skilled jobs in Wales”.

 "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.

Consultancy Arup has been appointed by Great British Energy-Nuclear to provide early-phase foundation engineering and design support for the Wylfa project.

Together with project partners LDA Design, TÜV SÜD Nuclear Technologies, Mace Consult and Gleeds, Arup will deliver early phase foundation engineering.