UK government to launch new pipeline for smaller nuclear projects

The door is being opened to increased private sector under the new initiative, which the government hopes will accelerate enhanced support for, and the subsequent deployment of, advanced nuclear technologies.

The Advanced Nuclear Framework (pdf, 45pages/3mb) will offer a concierge-style service to enable easier planning access from potential developers, helping them prepare for grid connection, fuel and regulatory requirements.

As part of the proposals, a series of public events are being held in Manchester, London and online to provide more detail to potential developers.

Projects which pass the readiness assessment by the Department for Energy Security and Net Zero, and Great British Energy-Nuclear, would be in line for an in-principle endorsement from the UK government as to the maturity, viability and policy alignment of the project proposals, thereby providing an objective assessment of project credibility and opening the door to easier access for private finance as part of a government-managed pipeline.

Some targeted funding from the government to support projects, including utilising the National Wealth Fund, is also being considered as it looks to ramp up the country’s nuclear power options – including utilising advanced modular reactors (AMRs), along with small and micro modular reactors – with the goal of bringing the first AMRs on-stream inside a decade.

Michael Freeman, a nuclear regulation expert with Pinsent Masons, said the launch of the new framework showed how the commercial profile of nuclear projects had shifted in line with technological advancements.

“Advanced nuclear technologies (ANTs), whether small, advanced or micro modular reactors, are now smaller, cheaper to manufacture and deploy, and are more flexible as to where they may be sited,” he explained.

“As a result, private sector interest in UK nuclear projects has been galvanising at an unprecedented rate – banks and financial institutions are increasingly involved in discussions about nuclear project risks, and private sector developers are exploring the potential to deploy ANTs, particularly alongside energy-intensive industry such as data centres. 

“There has however been a ‘gap’ in the government’s policy framework as to how these projects can be structured and financed in a way that is acceptable to the government.  This new advanced nuclear framework is in many respects the ‘missing piece’ of the jigsaw, albeit alongside the other reforms that the government has committed to, such as planning and regulatory reform.

“We now have much welcome clarity on how these projects can secure a route to market, and the hope is that, in turn, this framework will incentivise further private sector interest in UK nuclear.”

Projects looking for this ‘in principle’ approval will need to satisfy a series of criteria, which includes assessing the technology and supply chain, developer capability, financing, project location and operator arrangements. 

Large scale nuclear projects are not included with in the scope of the new framework, which instead looks to build on existing announcements such as the X-Energy and Centrica advanced modular reactors set for Hartlepool, Wylfa’s hosting of Wales’ first SMR and the opening up of land in Chapelcross in Scotland, among other sites owned by the Nuclear Decommissioning Authority, for clean energy projects.

Energy Minister Michael Shanks said: “The UK is already progressing major projects such as Hinkley Point C and Sizewell C, alongside Rolls Royce being confirmed as the preferred bidder following the Great British Nuclear Small Modular Reactor Technology Selection Process.

“We are now entering a new phase in the golden age of nuclear, one that harnesses private sector innovation to deliver advanced nuclear projects.

“The publication of this Framework marks a significant step in delivering a secure, low-carbon energy future and supporting innovation and investment in this critical sector.”

Alongside supplying electricity to the grid, smaller nuclear projects are being looked at as potential power providers for data centres, or heating for industrial sites.

Companies will be able to submit proposals to join the pipeline from March.