New funding to cut UK nuclear fleet’s reliance on Russian fuel

Grant Shapps has announced the launch of the government’s mini-atomic reactor competition while unveiling funding for projects designed to reduce the UK’s reliance on Russia for nuclear fuels.

The secretary of state for energy security and net zero said the UK is seeing the “first brush strokes of our nuclear power renaissance” with the opening of the government’s new agency Great British Nuclear (GBN).

From today (18 July), companies will be able register their interest with GBN to participate in a competition to secure funding support to select the best small modular reactors (SMRs) for the UK.

The government has previously said that it will help to fund development of the selected technologies, including finding finance and sites for successful bidders, with the aim of reaching a final investment decision on two new build projects before 2030.

The government has also announced £157 million worth of grants to help fund the nuclear industry.

The SMR competition is being backed up with £77.1 million of funding for companies to accelerate advanced nuclear business development in the UK and support the entry of such designs into the UK regulatory system.

Another £58 million has been earmarked for funding the further development and design of advanced modular reactors, which can operate at higher temperatures than SMRs and thus provide heat for hydrogen and other industrial uses alongside nuclear power. The biggest award from this pot is £22.5 million to Ultra Safe Nuclear Corporation UK in Warrington to further develop the design of a high temperature micro modular reactor.

A further £22.3 million from the Nuclear Fuel Fund will enable eight projects to develop new fuel production and manufacturing capabilities, helping to reduce the UK’s dependence on Russia, which currently supplies up to 40% of Britain’s nuclear fuel.

The biggest share of this fund is £10.5 million for Westinghouse Springfields nuclear fuel plant in Preston to manufacture more innovative types of nuclear fuel.

Sue Ferns, senior deputy general secretary at the Prospect trade union, warned last year that the Springfields plant faced a “crisis” due to the run down of the UK’s fleet of gas cooled nuclear reactors.

She told a House of Commons committee about the union’s fears that a resulting hiatus in orders for the world’s first commercial nuclear fuel manufacturing plant could put a “key part” of the industry’s expertise at risk.

The fuel pot also includes more than £9.5 million to Urenco UK to enrich uranium to higher levels, allowing nuclear reactors to run for longer between refuelling outages and improving their efficiency.

Simon Bowen, interim chair of GBN, said: “Building on the work done at Hinkley Point and Sizewell, today’s announcement of the start of the SMR selection process signifies a real step forward in delivering the scale of nuclear power that Britain needs for secure, sustainable energy future.”

A previous SMR competition was abandoned by the government in 2017.

Tom Greatrex, chief executive of the Nuclear Industry Association, said: “Focus on the SMR selection will demonstrate the commitment to deployment of innovative technologies and open up new opportunities for the UK industrial supply chain here and abroad. There is a range of sites and communities across the country ready to host SMR technology, alongside the large scale nuclear capacity we will also need.

“Britain has an important leadership role in the global nuclear industry, and nowhere more so than in our determination to drive Russia out of the nuclear fuel markets. The government’s Nuclear Fuel Fund will bolster those world-class capabilities that make us uniquely placed to help our allies replace Russian supplies with Western nuclear fuel.”