283. The Review heard about the opportunities that advanced modular reactors, and small modular reactors, offer. Rolls-Royce, a developer of small modular reactors, stated that "these could create 40,000 UK jobs, add £52 billion of value to the economy and represent a significant growth opportunity for the UK".225 These types of reactors can be delivered in shorter timeframes and lower costs, though technologies are still to be proven and costs are uncertain, particularly that of advanced modular reactors.
284. The Government has already stated its ambition for at least one of the two projects achieving final investment decision in next Parliament to be a small modular reactor. To achieve this, Government should take forward a programme-based approach in line with the nuclear roadmap. This is to drive down costs and encourage competition whilst building UK export capacities. A similar approach should also be taken for nuclear technologies at an earlier stage of development, such as advanced nuclear reactors or fusion technologies.
285. The Review also agrees with stakeholders that maintaining UK funding for nuclear R&D would be essential to help the UK maintain a competitive edge. The UK is well positioned on nuclear R&D with dedicated research facilities, including for example the National Nuclear Laboratory, on both fission and fusion. In addition, the UK has been leading on research to decommission and clean up former sites.
286. When developing business models and programmes, government should also take into account that different technologies may have different need. It will also be important for industry and government to take a wider view and consider the role nuclear reactors could play in the wider economy's transition, for example as relates to heat, hydrogen or integration in particular of small reactors in other technology hubs. As EDF pointed out:
"In addition to generating electricity, nuclear stations also produce very large volumes of low cost, low carbon heat. Historically this heat has not been utilised in the UK. But in the net zero context, there are a range of future opportunities to take advantage of it, through for example improving the efficiency of hydrogen production, providing energy for Direct Air Capture processes, for synthetic fuels production and to support other industrial and commercial heating requirements."226
Mission: Set a delivery plan to double down on achieving the UK's baseload requirement through a programmatic approach for a next generation fleet of nuclear, supporting a high- tech British industry covering the whole supply chain. | ||
Issue heard by the Review | Action recommended | |
Nuclear investments require stable, long-term policy and funding commitments to ensure investor confidence given long lead-in times. | Government should implement reforms set out in the British Energy Security Strategy to double down on achieving the UK's nuclear baseload requirement • Expedite the set-up of Great British Nuclear (GBN) in early 2023, ensuring required funding and skills are in place. • Government and GBN to set out clear roadmap in 2023, including interim targets to reach 2050 ambition. Government to ensure funding is in place. As part of the roadmap, government should assess the possibility to increase the current ambitions supporting the development of supply chain to service a fleet of projects. • Roadmap to set out clear pathways for different nuclear technologies (including small modular reactors) and the selection process. This should consider how to use programmatic approach to deliver further cost reductions in a competitive environment. • Government to deliver on siting strategy by 2024. | |
Delays in obtaining planning permission, environmental permits and grid access add to timelines and administrative burden. | Government should work with regulators, local authorities, industry and key stakeholders to streamline the planning and environmental processes whilst maintaining highest security standards. | |
Timelines for receiving reactor design approval can delay projects. | Government should ensure Office for Nuclear Regulation (ONR) has necessary capacity to progress applications. Government to explore potential to reduce timelines through international cooperation that would allow recognition of approvals by partner countries. | |
Bottlenecks to the supply chain may impact on delivery timelines and businesses may struggle to access skills. There could be a lack of local content. | Government should work with GBN and industry on UK supply chain & skills. This includes: • On basis of the roadmap, identify key issues and potential dependencies to address; • Agree commitment to boost resilience of UK supply chain and monitor supply chain; • Build UK capacity and skills, provide the necessary training and certification and explore synergies with other sectors. | |
Some nuclear technologies with significant potential require further development to reduce costs and opportunities for nuclear energy outside the power sector are underexplored. | Government should ensure continued funding and support for new technologies such as advanced modular reactors (AMRs) and fusion that could play an important role in the future. Government should consider how a programme-approach could be used to drive down costs for AMRs in a competitive setting. Government should also look at the opportunities the nuclear industry provides outside the power sector, for example heat or hydrogen. | |