Rolls-Royce says nuclear power plan would create 6,000 jobs
A group led by Rolls-Royce said it would create 6,000 jobs if the UK government went ahead with plans to build 16 small nuclear power stations.
Aerospace and Defence
10,882.08
17:09 24/04/24
FTSE 100
8,040.38
16:34 24/04/24
FTSE 350
4,419.71
17:09 24/04/24
FTSE All-Share
4,374.06
16:44 24/04/24
Rolls-Royce Holdings
417.00p
17:15 24/04/24
The UK SMR consortium said the jobs would be created in UK regions over the next five years. Up to 80% of the power stations' components by value would be made in factories in the Midlands and Northern England, it said.
The projects would generate another 34,000 jobs by the mid-2030s with most workers employed in high-value manufacturing, UK SMR said. The consortium said it needed a "clear commitment" from the government to provide funding for the plants, which would be built in factories.
The government provided £18m in 2019 to design the reactors that was matched by the consortium. UK SMR is seeking another £217m of government investment that the industry would match. The programme would help support Rolls-Royce, which is cutting thousands of jobs with its main aircraft engine business in crisis.
UK SMR, which also includes Atkins, Laing O'Rourke and National Nuclear Laboratory, called on the government to fund the plan with unemployment rising sharply during the Covid-19 crisis. It also said support for jobs outside London and the South East would underscore the government's commitment to spread employment and prosperity across the UK.
Tom Samson, UK SMR's interim chief executive, said: “We have developed a manufacturing and assembly process that will make reliable, low carbon nuclear power affordable, deliverable and investable. Our ambition to accelerate the deployment of a fleet these power stations across the UK will contribute massively to the ‘levelling up’ agenda, creating sustainable high value manufacturing jobs in those areas most in need of economic activity."
UK SMR said the export potential for the compact power stations was at least £250bn by 2050. Each site will provide 440MW of electricity - enough low carbon power for a city of 450,000 homes for 60 years. The first unit will be operational within 10 years of the first order, with the factories able to produce two units per year thereafter, the group said.
Nigel Driffield, professor of international business at Warwick Business School, said: "While it is undeniable that the investment climate in the UK will be challenging for at least the next two years post Brexit, the announcement by Rolls Royce highlights an example of the types of investment that the UK, its regions and investment promotion agencies should be targeting."