Civil Nuclear Road Map

Lord Spellar Excerpts

Thursday 22nd February 2024 Commons Chamber

[Damian Collins (Folkestone and Hythe) (Con)]

I beg to move,

That this House has considered the civil nuclear roadmap.

I thank the Backbench Business Committee for allowing time for a debate on this very important subject. This is probably the biggest moment for the nuclear industry in the UK for 50 years. The Government have set a very important and ambitious target of an extra 24 GW of nuclear energy into the grid by 2050. It will require a huge feat of civil engineering to create the facilities required to deliver that. We will do that in the context of wishing to see less reliance on imported oil and gas in our economy, with more clean sources of energy and electricity, and recognising that other changes in technology are creating enormous demands for new energy. The impact of artificial intelligence on energy demand will be very significant indeed. A researcher in the Netherlands estimated that the amount of electricity just to power AI in the world by 2027 will require enough electricity to power a country the size of the Netherlands. That is a not insignificant amount and an entirely new demand, in addition to the high levels of water required to power the cooling systems required for the amount of computing power and energy. Our demands for the electricity market are changing, but technology is also changing the impact it will have.

The review that the civil nuclear road map sets out has to consider not only those challenges but the requirement set in 2011, when the current nuclear site list was agreed by Parliament, that it would need to be reviewed in 2025 for the next period. I remember very well, as a new Member of Parliament, the 2011 review, and with the nuclear power station at Dungeness in my constituency. The idea of the site list then was to try to give certainty to communities that nuclear power stations could be developed there, largely alongside existing facilities. Eight locations were agreed. Dungeness in my constituency was not expressly ruled out, but it was not included at that time. I have tried to be an advocate for looking at what is possible for nuclear sites such as Dungeness, and not just looking to say, “Well, if they can’t accommodate a nuclear reactor the size of Hinkley Point C or Sizewell C then there is no future for them at all.”

[John Spellar (Warley) (Lab)]

Does that not indicate why there ought to be greater latitude in particular when considering small modular reactors, and preferably those produced in the United Kingdom?

[Damian Collins]

I completely agree with the right hon. Gentleman. I will come on to that in more detail—that is normally an excuse to say I am not going to answer his question, but I wholeheartedly agree with what he says and I want to give it some attention as I go through my remarks.

The advent of advanced nuclear technologies and small modular reactors is the big thing that is different now compared to 2011. They give us more flexibility in the technologies that can be deployed. I also agree with the premise of the right hon. Gentleman’s point: this is exciting not just because it opens up new opportunities for nuclear power in the UK, but because it creates an opportunity for a renaissance in the civil nuclear industry in the UK. It is particularly exciting to see British firms such as Rolls-Royce leading the development and design of new small modular technologies. While the Government have their competition to identify best bets in terms of technologies to invest in, we need to look not just at the unit price of that technology, but at the wider impact and benefit to the UK economy of investing in the new technology, in particular the modular reactors that can be factory built and assembled. They can be designed not just to meet our energy demand; they could also be an export industry for the future for the UK. That is an incredibly important part of the equation.

In designing the civil nuclear road map and through the creation of Great British Nuclear, the Government have tried to make it as easy as possible for the industry to work with the Government, to understand what the Government’s needs and objectives are, and to understand the technologies that they may seek to invest in. I think all of that is welcomed. Certainly, the people in the industry I have spoken to welcome that step, which creates a degree of certainty. We are looking at far more players to be involved in the UK nuclear market than was the case in the past, with a far greater range of technologies and different businesses investing in them and developing them in the UK, Europe, the United States and further afield. This is all to be welcomed and encouraged.

I appreciate why it is difficult for the Government now, as it would have been in the past, to say, “These are the technologies that we know with certainty we can back” because the range is so great, but nevertheless we need to give certainty to the market and investors. The Government’s competition for SMRs is also important, but there will be developers of technologies that do not necessarily require Government subsidy and support, but simply seek sites where they can deploy their technology and know they connect to the grid.

[John Spellar]

The hon. Gentleman talks about the competition. I would also mention the time it is taking. Is the underlying problem not that while we have a manufacturer with a proven capacity to produce modular reactors, as it has been doing for the Royal Navy for many decades, the United States is out there selling its technology with the full backing of the US Government and their various departments right the way across Europe and other parts of the world? We are just considering it. Are we not hobbling British industry and the possibility of us being involved, as he rightly said, in this exciting new development?

[Damian Collins]

I am sure the Minister will speak for himself on that particular point, but that is not a characterisation I would share. What the competition and Great British Nuclear are doing is giving a very strong signal to businesses such as Rolls-Royce not only that this is a sound technology to invest in, but that there is potentially a very robust market for it in the UK. That is what I would like to see and why I said earlier that when these technologies are considered we need to think about the broader impact on UK manufacturing and jobs that supporting and backing these technologies would bring, not just the manufacture of modular reactors and electricity.

I have met Rolls-Royce and seen its SMR plans and designs. They are incredibly exciting. As the right hon. Gentleman says, this is technology that has been developed for the Royal Navy, and its applications for civil nuclear are very exciting indeed. I hope that it is very successful with it. I would certainly be very happy to see a Rolls-Royce SMR in my constituency at Dungeness.