Small Modular Reactors and Energy Security

Peter Bone Excerpts

Wednesday 19th January 2022 Westminster Hall

[Mr Peter Bone (in the Chair)]

Before we start, I remind hon. Members that they are expected to wear face coverings when not speaking in the debate. This is in line with Government guidance and that of the House of Commons Commission. I remind Members that they are asked by the House to take a covid lateral flow test before coming on to the estate. Please also give each other and members of staff space when seated and when entering and leaving the room. I will call Virginia Crosbie to move the motion and I will then call the Minister to respond. I have had notice that other Members will speak in the debate.

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[Alun Cairns (Vale of Glamorgan) (Con)]

I pay tribute to my hon. Friend for the work she is doing, not only in championing this issue in Parliament but prioritising Anglesey and Wylfa in the Minister’s mind as potential sites for nuclear investment. In the case of small modular reactors—[Interruption.]

[Mr Peter Bone (in the Chair)]

Order. I am not interrupting the right hon. Member because his intervention was too long; I am interrupting, I am afraid, because there is a Division.

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[Virginia Crosbie]

I thank my hon. Friend for her intervention. It is fantastic to have another atomic kitten here, and I welcome her warmly to this place. I will be talking about SMRs and how important it is that we have a plan in place so that we do not lose those high-skilled jobs, which are so valuable to our constituents across the UK.

To deploy SMRs as soon as possible and restore the UK’s leadership in nuclear technology, I call on the UK Government to take the following steps. I ask them to commit, in the upcoming nuclear road map from the Department for Business, Energy and Industrial Strategy, to deploying a fleet of at least 10 Rolls-Royce SMRs by 2035-36. That road map is critical if the UK Government are to get support from industry and investors, and it is the best way for UK taxpayers and consumers to benefit from the Government’s bold investment in the Rolls-Royce design. I ask the Government to allow the licensing and siting of the Rolls-Royce SMR technology to proceed in parallel, rather than one after another. As part of that, BEIS should instruct the Nuclear Decommissioning Authority and Magnox to begin detailed discussion on the sale of land on nuclear sites to Rolls-Royce as soon as possible.

I ask the Government to remain open to deploying other SMR technologies as they are proven around the world. Many of our trusted allies, including the US and Canada, are investing heavily in SMRs, and we should learn from their experience. The offer to conduct licensing and siting in parallel should be extended to all viable SMR developers with the financing to buy sites in the UK. As the Rolls-Royce design is proven, the Department for International Trade should back it with export financing to sell British technology across the world, as part of our global Britain initiative. In the ’50s and ’60s, the UK led the world in nuclear. I know that the Minister wrote one of his university projects on US-UK large-scale nuclear co-operation. How fantastic it would be to get us once more back to leading the way and exporting hundreds of SMRs. Think how that would galvanise the Welsh and UK steel sectors, and the high-skilled jobs it would create.

I ask the Government to bring forward a consultation within a month on classifying nuclear as a green investment in the UK taxonomy, and make nuclear investment eligible under the UK green financing framework. Especially as the Government are looking to invest directly in SMRs and in the next large-scale station, it makes sense to make those investments eligible for green bonds.

To be successful, manufacturers need certainty so that a strong UK supply chain can be established. I recently established the all-party parliamentary group on small modular reactors to look at some of those issues in more detail. We are already at the forefront of this technology, and we need to look at how we can position ourselves as a leading location for this SMR reactor technology.

In conclusion, I thank my fellow atomic kitten, the Under-Secretary of State for Transport, my hon. Friend the Member for Copeland (Trudy Harrison), because without her we would not have set up the nuclear delivery group; she has been a powerful force within the nuclear sector. In the UK we have a long and proud history of pioneering nuclear power. In 1956, we established the world’s first civil nuclear programme, opening our first nuclear power station, Calder Hall, at Windscale. At the peak, in 1997, 26% of the nation’s electricity was generated from nuclear power. Since then, several reactors have closed, and the share is now about 16%. Almost half of our current capacity is due to be retired by 2025, and other plants are rapidly reaching their use-by dates. SMRs could be the game-changing technology of the 21st century, not just in terms of providing British businesses and consumers with affordable, low-carbon energy, but as an export industry for technology and nuclear engineering skills across the globe.

I see the SMR programme and new nuclear as intrinsically linked to our levelling-up agenda. When we are importing gas from Russia and electricity from France, where are the jobs that generate that power located? Who is getting the value added from what we pay for that power? According to Rolls-Royce, a UK SMR programme could create 40,000 highly skilled, well-paid jobs. While constituencies such as mine in Ynys Môn suffer some of the lowest rates of gross value added across the UK—reflecting under-investment and a lack of quality, well-paid jobs—we are now paying our continental neighbours to provide us with energy.

For all these reasons, the UK needs to look closely and urgently at its energy strategy. Energy security is vital for our future as a nation, and for the sake of jobs and our economy. In SMRs, we have at our fingertips a technology that can transform the UK from an energy importer into an energy technology supporter. Diolch yn fawr.

[Mr Peter Bone (in the Chair)]

It might help right hon. and hon. Members to know that this debate will finish at 4.45 pm at the latest. I have been notified that two Members want to speak, but time is getting on and we must allow some time for the Minister to respond.