The British government has signed a contract with Rolls-Royce to begin the design work for small modular reactors (SMRs).
Great British Energy – Nuclear (GBE-N), the government-owned entity, confirmed the agreement formally initiates technology design activities for the nation's first SMRs.
The deal enables Rolls-Royce SMR to start immediate work on the delivery of three initial units at Wylfa on Anglesey, Wales. The site, a former Magnox nuclear power station, was acquired by GBE-N from Hitachi earlier this year.
Project scope and timeline
While the contract triggers design work, these small-scale generators are unlikely to produce power before the mid-2030s. SMRs feature a modular design that allows for factory assembly before being transported to installation sites.
The three-unit project at Wylfa is expected to generate at least 1.4 GW of electricity. This capacity could power roughly three million homes for over 60 years.
Rolls-Royce SMR was selected as the preferred provider last June from a shortlist of four bidders. The 2025 Spending Review allocated £2.6 billion ($3.5 billion) to fund the broader program and this specific contract.
GBE-N oversees the delivery of the entire project. While the specific value of the Rolls-Royce contract has not been disclosed, the firm has access to a £599 million ($805 million) loan facility from the National Wealth Fund.
The contract requires Rolls-Royce SMR to coordinate with GBE-N on site-specific design, regulatory engagement, and planning processes. These steps must be completed before a Final Investment Decision is reached.
