Rolls-Royce Secures State-Backed Loan for Small Nuclear Reactors in Wales

Rolls-Royce SMR has signed a contract with Great British Energy – Nuclear (GBE-N) to design and deliver the first small modular reactors (SMRs) in the United Kingdom. The project is supported by funding of up to £599 million provided by Britain’s national wealth fund.

The agreement, announced on April 13, 2026, allows work to begin immediately on the development of SMR technology. The reactors are planned to be built at the Wylfa site on the island of Anglesey, known in Welsh as Ynys Môn.

Funding and Industrial Strategy

The investment from the national wealth fund is intended to support the design of SMRs, which are nuclear power stations produced in factories. This modular approach is designed to reduce overall costs and accelerate the installation process compared to traditional nuclear plant construction.

According to the national wealth fund, the funding is expected to result in the creation of approximately 1,000 jobs at the company.

Chancellor Rachel Reeves stated that the investment would strengthen our energy security, create skilled jobs and help to build a new generation of homegrown nuclear technology that will power our economy for decades to come.

The Wylfa Site Development

The chosen location for the SMR factory is the decommissioned Wylfa nuclear power station. Wylfa previously generated nuclear power from 1971 until the shutdown of its final reactor in 2015.

The site has a history of attempted redevelopment. The Japanese conglomerate Hitachi previously sought to build a new nuclear power station at Wylfa but abandoned those plans in 2020 after failing to reach an agreement regarding government funding. In 2024, the state-owned Great British Energy – Nuclear bought the site from Hitachi.

Energy and Export Objectives

The UK government’s support for nuclear energy is driven by the goal of generating electricity without carbon dioxide emissions. Beyond domestic energy production, the government intends for the development of SMRs to establish a large new export industry.

Rolls-Royce SMR has described the contract as providing contractual certainty to build what it identifies as Europe’s first SMR fleet.

In a press release dated April 13, 2026, Rolls-Royce stated that the contract with GBE-N paves the way for the design and delivery of the first small modular reactors (SMRs) in the UK.