Rolls-Royce is preparing to sell off a stake in its mini-nuclear power business as it looks to raise fresh funding.
Chief executive Tufan Erginbilgic said the firm was in discussion with possible investors, with cash set to run out by early next year, The Sunday Telegraph reported.
One source familiar with discussions told the paper that the FTSE 100 giant was looking to raise hundreds of millions pounds.
Some £280m has already been pumped into the operation by its current backers, which include the Qatar Investment Authority and BNF Resources. A further £210m government grant was also announced by the former Conservative government in November 2021.
The company is being advised by bankers at BNP Paribas and is understood to have received approaches from “across the board,” including infrastructure investors, clean energy funds, hedge funds and other nuclear power companies, the report said.
It comes as Rolls-Royce closes in on winning a government tender, led by Great British Nuclear (GBN), to develop so-called Small Modular Reactors, which are essentially scaled-down versions of a nuclear power plant. GBN will pick two designs from a host of competitors including Rolls, GE Hitachi, Holtec Britain, Nuscale and Westinghouse.
Asked about the funding situation, Erginbilgic told The Sunday Telegraph he was “very comfortable.”
“I won’t go into specific deals. But obviously our SMR is an attractive proposition and it’s got a great future and some investors potentially recognise that,” he said.
A spokesman for Rolls-Royce SMR added: “Our first mover advantage, combined with the significant growth in demand for small modular reactors, puts Rolls-Royce SMR in a leading position to capitalise on this global decarbonisation opportunity.
“Naturally, this is attracting investor interest and we continue to consider a range of options to support our future growth.”