Government steps in to save £25m nuclear research centre under threat from cuts

The Nuclear Advanced Manufacturing Research Centre (NAMRC) was announced by the previous government as part of ambitions to lead the world in low-carbon technology.

The scheme was to be part-funded with 7m from regional development agency Yorkshire Forward, with the rest of the cash coming from the Department of Business Innovation and Skills (BIS).

Late last week the agency, which is facing abolition and recently announced 40m of cuts to other projects, said it could no longer guarantee that money would be available.

The news was described by MP Clive Betts as a "devastating blow", coming just weeks after the coalition Government scrapped an 80m loan promised to Sheffield Forgemasters.

But yesterday NAMRC director Keith Ridgway told the Yorkshire Post all uncertainty had been removed after BIS officials confirmed it would now meet all costs. The nuclear research unit will pioneer techniques to allow British companies to manufacture parts for new nuclear power stations, a market thought to be worth 200bn worldwide. It is planned for a site next to the existing Advanced Manufacturing Research Centre at Catcliffe, between Sheffield and Rotherham.

Prof Ridgway said that in spite of losing its loan, Forgemasters would still play a "big role" in the centre, which should be complete by December 2011.

"We have good, clean central Government money and we want to build on that. We have applied to the European Regional Development Fund for another 20m to expand further.

"We were desperate to get the NAMRC because it really builds on South Yorkshire's manufacturing background."