Slow pace on nuclear putting UK energy goals at risk, argues SMR player
The UK should speed up its plans to revive nuclear power to ensure it can meet its energy security goals, a potential contender for small modular reactors (SMRs) has argued.
Stefano Buono, chief executive of Italian SMR specialist Newcleo, told City PM that the transition from the government unveiling new nuclear targets to selecting projects has been “slower than we expected” – with the government only recently confirming industry vehicle GB Nuclear and announcing a competition for new projects.
He said: “We hoped as a private company, we would have been able to act faster but we are adapting to the pace of the system.”
In his view, the delays over approving new projects meant companies such as Newcleo had not been able to make commitments for new projects, such as buying land for prospective developments.
“I think it’s important to enable companies to act, because the speed in which a company can go if they have money and resources is in general faster than waiting for the inertia of a public system,” Buono argued.
He confirmed to City PM that Newcleo was not looking for public funds, however, said it would enter any SMR competitions for potential funding if it was made eligible.
However, he explained that Newcleo was “like everyone else, waiting for news”.
“We don’t even know if it [the competition] is open to all the technologies. So, if the technologies can gain financial support, we are very happy to participate and improve that we have that we deserve financial support. But we will be very happy just to let have to have the possibility to work in the UK, the way we want,” he said.
Downing Street is targeting a ramp up of nuclear power from 7GW to 24GW over the next three decades, including GW reactors such as Hinkley Point C and Sizewell C, alongside SMR players.
The government has backed Rolls-Royce with £210m funding for its designs, but its proposed projects are currently at an impasse due to minister concerns over further taxpayer support.
Last month, Newcleo announced it was looking to attract £870m of funds in an upcoming equity raise – to support the development of its lead-cooled fast nuclear reactors (LFRs), and its plans to manufacture fuel from nuclear waste.
The company is exploring nuclear sites in France and the UK to develop a plant to manufacture fuel exclusively from existing nuclear waste.
Newcleo is aiming to deploy 30 megawatt LFRs in France by the end of the decade, rapidly followed by a 200MWe commercial unit in the UK two years later.
Its design contrasts with the scaled-down light-water reactors proposed by Rolls-Royce, which are based on existing technology.
The LFRs will be constructed similarly to small modular reactors (SMRs), with manufacturing and construction standardised in factories, rather than built on site such as with conventional nuclear power plants.
Public funding applications for its LFRs have been submitted in France, alongside initial steps towards regulatory approvals, such as the UK Generic Design Assessment (GDA) entry application.
Launched in September 2021, the company has already completed two capital raises, raising a total of £353m buoyed by international investors.
In Italy, it has struck strategic partnerships with power companies ENEA and ENEL, which could invest in its first nuclear plant.
The government has been approached for comment.