Small Modular Reactors and Energy Security

Debate between Virginia Crosbie and Jill Mortimer

Wednesday 19th January 2022 Westminster Hall

[Virginia Crosbie]

My hon. Friend and neighbour from the beautiful constituency of Aberconwy makes a very important point. In his previous roles, the Minister has been keen to reach out to the farming community. He has already committed to coming to visit Anglesey and Wylfa Newydd, and I am sure he will reach out to the important rural and farming communities as part of that visit.

When it becomes law, the Nuclear Energy (Financing) Bill will give developers a guaranteed return on their investment and lower the cost of raising the capital required to build a power station; that accounts for much of the cost of nuclear projects. We have already seen the regulated asset base model used for infrastructure projects in London, such as the Thames Tideway tunnel, and using it in Wales to finance new nuclear will make a big difference in levelling up the UK.

There has been rapid progress in recent months. Rolls-Royce has received the green light to develop its SMR technology, with match funding from the UK Government. The Nuclear Energy (Financing) Bill will also make a big difference in allowing new sources of funding for nuclear projects. There are other exciting SMR technologies that can help the UK reduce its dependence on expensive foreign energy.

The generation IV molten salt reactors developed by Terrestrial Energy not only have the potential to provide clean energy to the grid, but could provide scalable clean hydrogen for industry. Boiling water reactors, such as that developed by GE Hitachi, deliver clean, flexible baseload energy, too. There is a real opportunity for the UK to take a lead in this field, supported by engineering firms such as Assystem and Bechtel, as well as the wider UK supply chain, which can support the development of all different types of SMR reactors.

This Government have made some impressive funding commitments so far, with the recent Budget allocating £1.7 billion of public funds to support new nuclear projects. The Government have committed to £385 million in the advanced nuclear fund, £215 million for small modular reactors, £170 million for research and development on advanced modular reactors and £120 million for the enabling fund announced in the net zero strategy. Finally, there is an additional £40 million for developing regulatory frameworks and supporting UK supply chains. That is very welcome, but given the scale of the potential energy crisis, there is scope for the Government to do more. The UK should be looking at contingency plans to get new SMRs into play as soon as possible to replace fossil fuel generation.

[Jill Mortimer (Hartlepool) (Con)]

I congratulate my hon. Friend on securing this debate. In Hartlepool, the nuclear reactor is on the brink of decommissioning, and my constituency is not the only one in that position. Does my hon. Friend agree that SMRs provide a unique opportunity for us to replace those decommissioned reactors as quickly as possible to preserve high-skilled jobs in places where people do not fear nuclear? They are used to it and they know the advantages it brings.

[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.