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Image Credit: Last Energy
A US-based start-up has revealed ambitious plans to pour £300 million into developing cutting-edge micro-nuclear power plants in South Wales. This bold investment aligns with the UK government's renewed push to rejuvenate its nuclear power industry, which is currently grappling with an ageing fleet of reactors while turning to more nimble, modern technologies for the future.
The start-up is already amid a highly competitive bidding process focused on developing Small Modular Reactors (SMRs) in the UK. SMRs are gaining attention as a key technology in efforts to decarbonise heavy industry. Major players such as Rolls-Royce and Holtec Britain compete fiercely for these contracts.
In contrast to SMRs, Last Energy's reactors are designed to be even more compact. However, the technology is still in its infancy and faces numerous obstacles on the road to full deployment.
A target of 2027 delivery of the first operational plant in South Wales has been set, though this timeline will depend heavily on navigating licensing and planning regulations. The company is committed to sourcing at least 10% of its materials and services from local South Wales suppliers, which it claims will inject an estimated £30 million into the regional economy.
Last Energy's plan includes installing four micro-modular nuclear units on a currently vacant site in Bridgend County. The site was home to the coal-fired Llynfi Power Station until its closure in 1977.
The start-up projects that its initiative will generate 100 local jobs. Once complete, these 20 MWe plants are expected to produce enough electricity to power approximately 244,000 homes in the UK annually.
"The benefits of nuclear power speak for themselves, so our focus must be on delivering those benefits on time and on budget," Michael Jenner, chief executive of Last Energy's UK subsidiary, said.
"Last Energy's emphasis on mass-manufacturability allows us to deliver significantly smaller plants in under 24 months with purely private financing."
Tom Greatrex, chief executive of the Nuclear Industry Association, said: "New nuclear is an integral part of a future power system — providing secure, reliable and always available electricity to consumers."
"Increasingly, industries are looking to nuclear to provide that reliable and price predictable heat and power as they seek to decarbonise.
"Potential projects such as that proposed by Last Energy, with an innovative business model of direct-to-industry power and co-location, will be required if deep decarbonisation is to become a reality rather than a slogan."
Minister for Energy Security and Net Zero, Lord Hunt, welcomed the investment deal.
"New nuclear projects can revitalise communities by repurposing old industrial sites and injecting new jobs and investment. This is at the cutting edge of nuclear technology and could help decarbonise industry by providing low-carbon heat and power," he said.
"It comes a day after the UK's investment summit and signals that we are reversing a legacy of no new nuclear power being delivered, ensuring the long-term security of the sector while securing thousands of good, skilled jobs."
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