A consortium led by Polish billionaire Michał Sołowow has announced a landmark £35 billion investment to build 14 small modular nuclear reactors (SMRs) across three UK sites, including the former nuclear plant at Oldbury in Gloucestershire. This ambitious private-sector project aims to power the equivalent of 8 million UK homes for over 60 years, marking a significant step in the nation's clean energy transition.
The initiative, spearheaded by Sołowow's nuclear development company SGE, relies on the proven BWRX-300 boiling water reactor design from US manufacturer GE Vernova and Japanese industrial giant Hitachi. Each 300-megawatt reactor will cost between £2.2 billion and £2.5 billion, with the consortium targeting a government support contract to guarantee a competitive electricity price once generation begins in 2034.
Strategic Sites and Government Support
The consortium, known as SGE SMR, has submitted an application to use the Oldbury site in south Gloucestershire, which was previously earmarked for SMR development under the UK government's advanced nuclear framework. This framework, introduced by the Labour government, aims to fast-track nuclear technologies and has created what Sołowow calls "a clear path to market" in a country with one of the world's most experienced nuclear workforces.
Sołowow expressed confidence in setting a new standard for nuclear development by combining a disruptive business model with the BWRX-300's 10th-generation proven technology. He emphasized a strong reliance on the UK supply chain, calling it a critical element for the project that will create a distinct competitive advantage for the UK economy.
Competition with Rolls-Royce
SGE's plans put it in direct competition with Rolls-Royce, which won a government competition earlier this year to start generating power from its own SMR design by 2032. Both companies are racing to be the first to roll out SMRs in the UK, with the government backing tech companies to build reactors that can power energy-intensive AI datacentres. Prime Minister Keir Starmer has called for collaboration between tech firms and the government to accelerate this transition.
Datacentre and Tech Partnerships
A notable aspect of the SGE consortium is its partnership with Google Cloud, which Sołowow hopes will co-invest up to £4.5 billion in datacentres to utilise the nuclear output. While this accompanying proposal is not part of the current application, it highlights the growing synergy between nuclear power and the tech sector's insatiable energy demands, particularly for AI and cloud computing.
The consortium is seeking a contract similar to the one offered to the Hinkley Point C nuclear project, known as a contract for difference (CfD). This mechanism would provide revenue stability by guaranteeing a fixed price for the electricity generated, making the investment more attractive to private capital.
Environmental and Economic Impact
Small modular reactors are seen as a key solution for the UK's net-zero ambitions, offering low-carbon baseload power that can complement intermittent renewables like wind and solar. Each SMR produces around 300 megawatts of electricity, enough to power hundreds of thousands of homes without the long construction timelines and massive upfront costs of traditional nuclear plants.
The project is expected to create thousands of skilled jobs in engineering, construction, and operations across the UK, particularly in regions like Gloucestershire that have a history of nuclear expertise. By relying on the domestic supply chain, the consortium aims to boost local economies and reduce dependency on foreign energy imports.
Challenges and Timeline
Despite the optimism, the SMR rollout faces significant hurdles, including regulatory approvals, site selection, and public acceptance. The consortium has not disclosed all three target sites, but the application for Oldbury is a strong signal of intent. The government's advanced nuclear framework is designed to streamline these processes, but safety and waste management remain critical concerns that must be addressed transparently.
If all goes according to plan, the first SMRs could start generating power by 2034, with the full fleet of 14 reactors operational within the following decade. This timeline positions the UK as a global leader in SMR deployment, potentially attracting further investment and technology transfers from international partners.
FAQ: Small Modular Nuclear Reactors in the UK
What are small modular reactors (SMRs)?
SMRs are advanced nuclear reactors with a power capacity of up to 300 megawatts per unit, about one-third the size of traditional reactors. They are designed to be factory-built and modular, allowing for faster construction, lower costs, and flexible deployment. Their smaller size makes them suitable for repurposing former industrial sites or powering specific facilities like datacentres.
How does the BWRX-300 differ from other SMR designs?
The BWRX-300 is a boiling water reactor design from GE Hitachi, representing the 10th generation of their proven technology. It uses natural circulation for cooling, eliminating the need for large pumps and reducing complexity. This design is already licensed in several countries and is considered one of the most mature SMR technologies available, with a focus on safety and cost-efficiency.
What are the main benefits of SMRs for the UK?
SMRs provide reliable, low-carbon baseload power that can operate 24/7, complementing renewable sources like wind and solar. They create skilled jobs, support energy security by reducing reliance on imports, and can be sited on brownfield land like former coal or nuclear plants. Additionally, they offer a scalable solution for decarbonising industries and powering the growing energy demands of AI and datacentres.
How will the £35 billion investment be funded?
The investment is entirely private capital led by Michał Sołowow's consortium, SGE SMR, with industrial partners including GE Vernova and Hitachi providing the reactor design. The consortium is seeking a government contract for difference (CfD) to guarantee a stable electricity price, which reduces financial risk. Additional investment from tech partners like Google Cloud for datacentre co-location is also being explored but is not part of the current application.
