Great British Nuclear

Jim Shannon Excerpts

Wednesday 28th June 2023 Westminster Hall

[Virginia Crosbie (Ynys Môn) (Con)]

I beg to move,

That this House has considered Great British Nuclear.

It is a pleasure to introduce this debate on Great British Nuclear. Quite simply, the formation of Great British Nuclear, headed by the interim CEO—the brilliant Gwen Parry-Jones, who lives on Anglesey—has given us the best opportunity in 40 years to kick-start a programme of new nuclear power stations in this country. I want to remind hon. Members, if they need reminding, that nuclear is vital to our journey to net zero, to our drive for energy security and to our prosperity as a country, with jobs and opportunity reaching every corner of these islands.

In just one technology, nuclear provides energy that is clean, reliable, affordable and British. It is the only technology that can say that. Common sense and every bit of modelling and evidence from countries right around the world tell us that we need nuclear, operating whatever the weather, to complement technologies such as wind and solar, and to wean us off imported fossil fuels.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this debate. From the very beginning of her time in this House, her interest in her constituency and in nuclear power has been prominent, and I congratulate her on that. Does she not agree that the war in Ukraine and the accompanying fuel crisis have underlined the vital importance of nuclear’s capacity, and that £20 billion for a large-scale plant, with additional support for small modular reactors for a plant that helps with this nation’s self-sufficiency, is a price that we must be willing to pay? I have always supported nuclear, and I support the hon. Lady today.

[Virginia Crosbie]

I thank the hon. Member for his intervention and for his kind words. He is a true champion for his constituency and certainly for the nuclear sector. I absolutely agree with him. We have to invest in this new technology, and the time is now. It is important for net zero and for all those fantastic jobs. We cannot achieve net zero without it; we need that energy security.

Nuclear’s record in local communities speaks for itself: it provides high-quality, long-term and skilled jobs that pay wages two or three times what people get outside the power station. My community and many others around the UK that have had nuclear power know that it delivers good-quality jobs and local investment—and they say they want more of it. That, as hon. Members may guess, is my particular interest in today’s debate.

We have made great progress on nuclear in recent years, introducing the new regulated asset-based funding model, investing in Sizewell C and putting money into the Rolls-Royce reactor design. We also had the Chancellor’s welcome announcement that we will green-label nuclear, crowned by the formation of Great British Nuclear. We even have, for the very first time, our very own Nuclear Minister.

I can attest to the wave of energy and optimism that GBN’s formation has given to the industry. The Minister will know that technology vendors and developers from all over the world have entered the small modular reactor down-selection process that GBN is running at the moment. Many have come to visit Wylfa in my constituency of Ynys Môn to see the best site in the UK for further nuclear development. The likes of GE Hitachi, Rolls-Royce and Last Energy have all toured the island.

Today, I want to focus on how GBN can convert reactor technology, sites and strong political support from the Government into new projects in constituencies such as Ynys Môn. I hope the Minister is listening carefully. If I start with the small modular reactor down-selection, we should expand the prize of winning. At the moment, that prize is co-funding to help to develop the winning technologies up to the point of a final investment decision.

That is a good start, but we can go further. The winner should get access to named sites that are suitable for building small modular reactors; access to a funding model, such as the regulated asset base model or contracts for difference, to help to raise money; and help from GBN to form the actual project companies that will develop, own and operate the nuclear power stations once they are built.

The first SMR being built in the western world, at Darlington in Ontario, Canada, followed exactly that model. About five years ago, Ontario Power Generation ran a selection process, as we are now, and at the start it was clear that whoever won the selection would build an SMR at the Darlington site and that Ontario Power Generation would develop, own and operate the site. The winners had a site, an order, and a project developer and operator. That is the model that we should follow, because that is how we give investors enough confidence to put their money into such projects.

I am delighted that the Energy Bill gives GBN the power to form subsidiaries and joint ventures with the private sector to do exactly that type of individual project development, and I want to hear how the Minister’s Department will support GBN in doing just that. More than that, I want to hear whether the Minister has thought about awarding sites and offering funding modes to the winners to accelerate the process of deployment and quicken investor interest in the UK.

If the Minister needs sites to offer, I have one in mind: the best site for new nuclear in the UK, Wylfa. Our need for new nuclear means that we have to build more large-scale nuclear as well as small-scale nuclear. Large-scale nuclear, which is often unfairly maligned, has actually had a banner year. All three major western designs—the EPR, the AP1000 and the APR-1400—have connected reactors and entered commercial operation. Coincidentally, I think that the owners of those designs have all expressed an interest in a Wylfa site. Will the Minister say what further thought has been given to other large-scale projects after Sizewell C to capitalise on that interest, and also set out his thinking on the circumstances under which we will pursue more large-scale nuclear in this country?