The government should support Rolls-Royce in nuclear energy, says ex-boss Sir John Rose

Sir John Rose, the former CEO of Rolls-Royce, is calling on the government to support British nuclear technology developed by the tech giant.

Rolls is leading a project to design a fleet of mini power stations – known as SMRs or small modular reactors – which have become an important part of the UK’s long-term energy strategy.

Ministers have already poured more than £200 million of public money into the project.

But instead of backing Rolls, the government has launched a competition to select a provider that will take on the FTSE 100 flagship against foreign rivals.

Sir John, who ran the company from 1996 to 2011, described the move as ‘depressing’.

He warned that by not supporting Rolls-Royce, ministers risked destroying a potentially valuable export revenue stream and losing out on highly skilled jobs.

Rolls has previously said that if it won the contract it could create 40,000 jobs in the UK by 2050 and boost the economy by £52bn.

A deal would also benefit suppliers and potentially make the country a global hub for nuclear technology.

Rose described the competition as ‘a good example’ of the government’s failure to provide the support British business needs. “The chances of export success are negligible if the producer is not supported by his government,” he said.

“Instead of a competition, why not place an order for 10 of Rolls-Royce’s small modular reactors, depending on the design approved by the regulatory authorities?” he asked.

Rose said the decision to hold a competition “seems odd in circumstances where there is relatively little technical difference between the offers.” Competitors are believed to be TerraPower, a nuclear startup backed by Microsoft billionaire Bill Gates, and another US company called NuScale.

Rose added that any risk that the Rolls-Royce SMR might not be “best in class” would be offset by other benefits for Britain, such as high-quality skilled jobs and “the establishment of a supply chain that can support the global industry operate and increase energy’. security’.

Countries such as the Czech Republic and Poland have already shown interest in ordering the small reactors. The project has also received investment from France, the US and Qatar.

Sir John’s intervention comes shortly after ministers launched a new government body called Great British Nuclear.

Small modular reactors are seen as key to reducing Britain’s carbon emissions as they are faster and cheaper to build than conventional sites.

Rolls’ SMR design is based on the nuclear reactors it supplies to British submarines. The plants would each cost around £1.8 billion and each would provide energy for 45,000 households.

A spokesperson for the Department for Energy Security and Net Zero said: “We have launched a fair and transparent competition that will offer a range of companies the opportunity to help us develop the best SMR technologies in the world.”