SGE Targets £35 Billion Investment for UK Small Nuclear Plant Fleet
SGE's Ambitious Plan for Small Modular Reactors in the UK
By Susanna Twidale
SGE's Investment and Timeline
LONDON, July 2 (Reuters) - Poland-based SGE plans to build a fleet of 14 small nuclear reactors at a total cost of £35 billion ($46.5 billion), it said on Thursday, targeting power from the first project by 2034.
UK Government Support for SMRs
Britain has backed the development of small modular reactors (SMRs) to help to increase energy security and meet climate targets, launching an Advanced Nuclear Framework this year to support development of privately funded projects.
Project Details and Capacity
Reactor Sites and Output
SGE plans to host six 300 megawatt reactors at its first site, with two further sites accommodating four units each, capable of producing a total of 4.2 gigawatts, enough electricity to power about eight million homes.
Investment and Regulatory Strategy
Michał Solowow, founder of SGE, told Reuters that Britain offers an attractive regulatory market for nuclear power and the company would seek investors for the projects once it has secured government backing through contracts for difference (CfD).
Contracts for Difference (CfD) Explained
How CfD Works
Under the CfD scheme, project developers take on construction risk but are given a guaranteed strike price for the electricity produced. If wholesale power prices go below that level, the government covers the difference, with the money usually recovered through electricity bills.
Impact on Producers and Consumers
If prices go above the strike price, producers pay back the difference and money can be deducted from bills.
SGE's Revenue Model
"We are not making money from the construction; we are only making money when the electrons go to the grid,” Solowow said.
Site Selection and Partnerships
Solowow said the company has identified three potential locations, one of which SGE plans to buy from the government.
Existing Nuclear Sites
Britain’s Great British Nuclear owns the Wylfa site in Wales and Oldbury site in England. The Wylfa site has already been chosen to host a Rolls-Royce SMR project.
Operator Discussions
Solowow said the company has had advanced discussions with an operator for the plants and expects to announce the outcome later this year.
Technology and Future Plans
The projects will use GE Vernova Hitachi BWRX-300 technology, which is being assessed by Britain's Office for Nuclear Regulation.
SGE is also planning to build a large fleet of SMRs in Poland.
($1 = 0.7532 pounds)
(Reporting by Susanna TwidaleEditing by David Goodman)
