(Alliance News) - Rolls-Royce Holdings PLC said Tuesday it has secured funding for its Small Modular Reactor unit to build low carbon nuclear power technology.
Shares in the FTSE 100-listed jet engine maker were 5.5% higher in London on Tuesday morning at 149.60 pence each.
Rolls-Royce, BNF Resources UK Ltd and Exelon Generation Ltd will invest GBP195 million across three years, and this spending commitment will allow it to secure grant funding from the UK government of GBP210 million. The UK grant falls under the government's 'Ten Point Plan for a Green Industrial Revolution'.
"The business, which will continue to seek further investment, will now proceed rapidly with a range of parallel delivery activities, including entry to the UK Generic Design Assessment process and identifying sites for the factories which will manufacture the modules that enable on-site assembly of the power plants," Rolls-Royce said.
"Discussions will also continue with the UK government on identifying the delivery models that will enable long-term investment in this vital, net-zero enabling technology. Rolls-Royce SMR is engaging with export customers across many continents who need this technology to meet their own net zero commitments."
A single Rolls-Royce SMR power station will occupy the footprint of two football pitches and power about one million homes.
Chief Executive Warren East said: "The SMR programme is one of the ways that Rolls-Royce is meeting the need to ensure the UK continues to develop innovative ways to tackle the global threat of climate change. With the Rolls-Royce SMR technology, we have developed a clean energy solution which can deliver cost competitive and scalable net zero power for multiple applications from grid and industrial electricity production to hydrogen and synthetic fuel manufacturing.
"The business could create up to 40,000 jobs, through UK deployment and export enabled growth. As a major shareholder in Rolls-Royce SMR, we will continue to support its path to successful deployment."
By Paul McGowan; paulmcgowan@alliancenews.com
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