A US start-up has announced plans to invest £300m in developing a series of cutting edge micro-nuclear power plants in Bridgend County, South Wales.
Last Energy intends to bring into service four micro-modular nuclear units on a vacant site in Bridgend Country, which housed the coal-fired Llynfi Power Station until 1977.
It estimates the project will create 100 local jobs, while the completed 20 MWe plants will produce the equivalent energy consumed by around 244,000 UK homes each year.
The firm’s investment comes as the UK government looks to revitalise its nuclear power sector and replenish an ageing fleet of reactors, aided by nimbler technologies.
It is already in the midst of a hotly-anticipated tender surrounding the development of Small Modular Reactors (SMR)’s in the UK. SMRs are seen as one of the most promising technologies for decarbonising heavy industry and companies including Rolls-Royce and Holtec Britain are all vying the contract.
Last Energy’s reactors will be even smaller, but the tech is still in the early stages and faces a myriad of hurdles.
A deadline of 2027 has been set for the delivery of the first South Wales plant, however the roll-out will be contingent on licensing and planning processes. The company plans to source at least 10 per cent of its needs from South Wales suppliers, which it claims will pump around £30m into the local economy.
“The benefits of nuclear power speak for themselves, so our focus must be on delivering those benefits on time and on budget,” Michael Jenner, chief executive of Last Energy’s UK subsidiary, said.
“Last Energy’s emphasis on mass-manufacturability allows us to deliver significantly smaller plants in under 24 months with purely private financing.”
Tom Greatrex, chief executive of the Nuclear Industry Association, said: “New nuclear is an integral part of a future power system — providing secure, reliable and always available electricity to consumers.”
“Increasingly, industries are looking to nuclear to provide that reliable and price predictable heat and power as they seek to decarbonise.
“Potential projects such as that proposed by Last Energy, with an innovative business model of direct to industry power and co-location, will be required if deep decarbonisation is to become a reality rather than a slogan.”
Minister for Energy Security and Net Zero, Lord Hunt, welcomed the investment deal.
“New nuclear projects can revitalise communities by repurposing old industrial sites and injecting new jobs and investment. This is at the cutting-edge of nuclear technology and could help decarbonise industry by providing low-carbon heat and power,” he said.
“It comes a day after the UK’s investment summit and signals that we are reversing a legacy of no new nuclear power being delivered, ensuring the long-term security of the sector while securing thousands of good, skilled jobs.”