The EU Ready to Offer Substantial Support in Countering Nuclear Energy
One Solution to the Energy Crisis: Small Modular Reactors
By Andreas Hippin, London
In a nation heavily dependent on power imports and grappling with increasing electricity demand, the continuation of nuclear power plants' operation by EDF has brought a sigh of relief to Britons. With the last coal-fired plant shuttered, the UK is in dire need of a reliable and clean energy source to achieve its "clean" power goal by 2030.
"Clean" and dependable
Without nuclear power, the dream of a clean energy future remains elusive, acknowledged by Energy Minister Ed Miliband (Labour). Owing to its predictable and domestic supply, nuclear power serves as a crucial backbone for the country's energy mix. However, private investments in new nuclear power plants were elusive under the previous government.
A lifeline for delayed projects
EDF can easily continue operating the previously written-off reactors to bridge the energy gap caused by project delays. This includes the much-delayed Hinkley Point C, which was originally planned to be operational by Christmas 2017 but is now scheduled for 2030.
Independent of grid constraints
As electric vehicles revolutionize our transportation landscape and data centers proliferate worldwide, demand for electricity is growing steeply. By 2027, data centers alone will require 500 TWh per year to power AI-optimized servers – a 2.6-fold increase from the previous year, according to market researcher Gartner. The resulting energy shortages could impact two-fifths of existing data centers.
"Major power consumers are collaborating with large power producers to secure long-term, independent power sources that are insulated from the grid's demand fluctuations," remarks Gartner analyst Bob Johnson. Amazon learned this lesson the hard way when a deal to secure additional power from a nearby nuclear plant was blocked by the Federal Energy Regulatory Commission.
Optimistic about SMRs
Google and other hyperscalers are targeting Britain as they look to invest in small modular reactors (SMRs). One of their main motivations is to secure their power supply and maintain a low carbon footprint. SMRs could also benefit data center operators by reducing power procurement risks and attracting other interested parties, such as steelworks and e-fuels manufacturers.
Tackling energy challenges in the UK
The U.K. steel industry has experienced numerous setbacks, such as those faced by Tata Steel in southern Wales. Nevertheless, the local environment presents an excellent opportunity for the deployment of SMRs, with the U.S. startup Last Energy planning to build four SMR units at the former Llynfi coal-fired power plant site. Last Energy's reactor design, PWR-20, is drawing attention from industry veterans like those behind Community Nuclear Power – the first privately funded SMR project in Europe, launched in February in the Teesside industrial region.
Rolls-Royce has championed SMR technology, while U.S. companies like Westinghouse are expressing interest in the British market. Rolls-Royce is heading towards licensing approval but still requires a production supply chain to be established, whereas Westinghouse is less advanced in the licensing process but boasts components that closely resemble its licensed AP1000 design.
The wait for power
Central to the success of SMR projects is resolving the uncertainty surrounding their deployment timeline. Community Nuclear Power estimates a five-year planning and licensing process before construction can begin, potentially shortened to four years – a nine-year journey from inception to grid connection.
Securing the first phase
Investors in the form of venture capital providers, private equity firms, oil producers, and climate funds could help finance the initial stages of SMR projects. The industry's global momentum and the potential to align with several United Nations' sustainability goals make SMRs an attractive proposition for investors.
Prime Minister Starmer's administration has expressed support for nuclear energy, and the Great British Energy Bill, promoting a state-owned energy company, is currently under debate in the House of Lords.
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Enrichment Data:The UK's small modular reactor (SMR) deployment program is advancing through Great British Nuclear's (GBN) competitive selection process, with significant developments reported as of April 2025:
Current StatusFour vendors have progressed to the final tender stage:- Rolls-Royce SMR (470 MWe PWR) and GE Hitachi (BWRX-300) have confirmed tender submissions[1][3][5]- Holtec (SMR-300 PWR) and Westinghouse (AP300 PWR) have been shortlisted but not yet confirmed in recent reports[1][4]GBN plans to select up to three designs by mid-2025, focusing on technologies deployable at former nuclear sites like Wylfa (Wales) and Oldbury (England)[1][4].
Deployment Timeline1. 2025-2026: Final vendor selection and site-specific planning2. Late 2020s: Potential construction starts for first units3. Early 2030s: Grid connection targets for initial deployments[1][4]The modular design philosophy aims to enable accelerated construction compared to traditional nuclear plants[4].
Industrial ApplicationsSMRs could serve energy-intensive users through:- Direct site colocation (particularly for steelworks requiring 24/7 power)- Grid-supplied baseload at industrial clusters- Hybrid energy systems pairing SMRs with hydrogen production[4]Rolls-Royce's design already has international traction (3 GW planned in Czech Republic), suggesting scalability for UK hyperscalers' needs[5].
Key uncertainties remain regarding regulatory approvals and financing models, though the political push from Prime Minister Starmer's administration indicates strong momentum[3][4].
Small modular reactors (SMRs) are attracting the attention of tech giants like Google and other hyperscalers, who view them as a potential solution to secure their power supply and maintain a low carbon footprint. The U.K. steel industry, facing numerous setbacks, presents an excellent opportunity for the deployment of SMRs, with one U.S. startup, Last Energy, planning to build four SMR units at the former Llynfi coal-fired power plant site.
The Great British Nuclear's (GBN) competitive selection process has four vendors in the final tender stage, including Rolls-Royce SMR and GE Hitachi. GBN plans to select up to three designs by mid-2025, focusing on technologies deployable at former nuclear sites like Wylfa (Wales) and Oldbury (England). The construction of the first units is anticipated to start in the late 2020s, with the initial deployments connected to the grid in the early 2030s. Rolls-Royce's design already has international traction, highlighting its potential scalability for UK hyperscalers' needs.
Industrial applications of SMRs could include direct site colocation, grid-supplied baseload at industrial clusters, and hybrid energy systems pairing SMRs with hydrogen production. With the political push from Prime Minister Starmer's administration and exciting developments in the SMR deployment program, investors like venture capital providers, private equity firms, oil producers, and climate funds could help finance the initial stages of these promising projects.
