The UK government signed a contract with Rolls-Royce SMR to develop the UK's first small modular reactors (SMRs), involving building three small modular reactors at Wylfa on Anglesey. The SMRs are expected to be operational by the mid-2030s and will generate enough low-carbon electricity to power the equivalent of around three million homes. The National Wealth Fund plans to invest up to £599 million to support the design stages of the SMRs, and the project will support around 3,000 jobs at the peak of construction and thousands more across the supply chain.
Politically, the UK government argues that the project will bring down energy prices and boost energy sovereignty, while the Labour Party hopes that nuclear energy from the new plant will generate electricity without carbon dioxide emissions. This push for new nuclear capacity marks a shift from decades of underinvestment in the UK's nuclear sector.
Historically, Wylfa previously generated nuclear power from 1971 until 2015 before shutting down its last reactor. The site was bought by GBEN in 2024 before Rolls-Royce was identified as the Government's preferred partner for the project last year. Additional developments include the Welsh Government preparing a proposal for Rolls-Royce SMR to develop a modular manufacturing facility in Deeside. The contract signing ceremony took place at the Treasury on Monday.